This is the largest sum returned to victims of crime following an FSA/FCA prosecution, officials said.

Southwark Crown Court today ordered the money to be returned to those invested in the scheme established and operated by Alex Hope. 

Mr Hope used over £2 million of investors’ money to fund his lifestyle, spending over £1 million in a casino, over £200,000 on designer watches and shoes, £60,000 on foreign travel, and over £600,000 in bars and nightclubs in London, Miami and New York, according to an FCA statement at the time of the original court case.

Raj Von Badlo promoted Mr Hope’s scheme to a large group of investors and over 75 investors gave £4.29 million to him as a result of Von Badlo’s actions, the regulator reported.

Mr Hope was made the subject of a Proceeds of Crime Act 2002 confiscation order to the sum of £166,696.

Mr Hope must pay the order in full within three months or face a further sentence of 20 months imprisonment in default, consecutive to the seven year sentence imposed upon him in January 2015.

Today’s orders follow a confiscation order made against Raj Von Badlo, Alex Hope’s co-defendant, who was ordered to pay £99,819 at a hearing on 18 December 2015.

The sum, which represents “his benefit from his involvement in the fraudulent scheme”, must be paid in full within three months or he will face a further sentence of 15 months’ in prison in default, consecutive to the two year sentence he received in January last year.

Mr Von Badlo was made the subject of a compliance order that prevents him leaving the UK until his confiscation order is satisfied in full.

Today’s orders were made by Her Honour Judge Taylor who directed that all sums confiscated from Mr Hope and Mr Von Badlo be paid by way of compensation to the investors who were victims of their crimes.

In total, investors should therefore expect to receive in excess of £2.9 million, which equates to approximately 55% of the capital sums that are owed to them.

Mark Steward, the FCA’s director of enforcement and market oversight, said: “This is the largest sum returned to victims of crime following an FSA/FCA prosecution and is the result of quick action in the first instance to restrain the proceeds of Mr Hope’s offending.

“The FCA will continue to work hard to ensure wrongdoers are held to account not only for their wrongdoing but also for its consequences, especially to victims, to the fullest extent possible.”

The FCA said overall that confiscation orders amounting to £11,093,164 have been obtained by the FCA and its predecessor, the FSA.