A Nottingham IFA has been jailed for two years and nine months for taking £145,000 in cash from clients, using it to pay off his own debts and fund his lavish lifestyle.
Nottingham Crown Court heard that Malcolm Peter Millward, 50, of Bush, Taylor & Partners had fraudulently obtained the money from 18 clients between March 1994 and February 1999.
Millward pleaded guilty to dishonestly concealing material facts, making false statements and deceiving clients in order to obtain money from them.
A two-year investigation by the FSA revealed that Millward's victims were retired clients or those nearing retirement. He convinced them to give him money from their pension lump sums, promising them investments returning up to 10 per cent a year.
In some cases, his victims were clients of 20 or 30 years standing and had previously purchased legitimate products from him.
Because Millward was unauthorised to collect the cash, the victims are not covered by the Deposit Protection Fund, preventing them receiving compensation through that avenue.
An FSA spokesman says: “The lesson that consumers should learn from this is to ring our consumer helpline and check that their adviser is authorised to handle their money.”