Today at Southwark Crown Court, His Honour Judge Tomlinson sentenced Ian James Hudson to 4 years’ imprisonment for one count of fraudulent trading, with two additional terms of 14 months, each reflecting a breach of s19 FMSA, to run concurrently following his earlier guilty plea.

His sentence follows charges laid by the FCA that Mr Hudson carried on a business (Richmond Associates) for a fraudulent purpose and that he carried out regulated activities when not authorised or exempt.

Mr Hudson advised on investments, mortgages and pensions and purported to invest deposits received by him from clients on their behalf between 1 January 2008 and 31 July 2019.

He was not authorised by the FCA during this period.

The regulator said Mr Hudson also told clients that the money deposited with Richmond Associates would be invested in various financial vehicles or otherwise but to specific uses. During its investigation the regulator also found that this was not always the case, and sometimes he used investments from clients to repay existing clients, to make payments to other individuals, or to fund his own lifestyle.

In total, approximately £2m was deposited by Mr Hudson’s clients.

The FCA commenced criminal proceedings against him following an investigation into his activities by the regulator.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “Mr Hudson’s defrauding was calculated and persistent over a number of years, preying on victims who believed he was a financial adviser and trusted friend when he was neither of these things. We remind investors to check the FCA’s register of authorised person to ensure any financial adviser is authorised to provide financial advice by the FCA.”

The regulator has now started confiscation proceedings. Any sums recovered from Mr Hudson will be used to compensate his victims.