Sam Eustace, a former director of Kingsman Property Ltd, has been disqualified as a director for 11 years by the Insolvency Service.

Kingsman Property claimed to offer investors 30% annual returns by their investing money in the multiple occupancy property rental sector.

The firm took £6.7m from investors before it went into liquidation in August 2019.

Between October 2016 and March 2019 Kingsman paid out over £3m to investors funded by money received from new investors rather than any actual return on investments, similar to a Ponzi scheme.

The company was setup in October 2015, originally as Samuel James Ltd, and changed its name to Kingsman Property Ltd in May 2017.

The firm was insolvent as early as June 2017, with debts totalling £700,000. It owed nearly £5m when it eventually went into liquidation.

However, Mr Eustace continued to pay himself dividends from the company of almost £400,000 between November 2017 and June 2019.

He admitted causing Kingsman Property to trade with a lack of commercial probity, including offering false representations as to returns on investments. His ban runs from 24 March 2022 and lasts for 11 years.

The disqualification undertaking prevents him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Martin Gitner, chief investigator at The Insolvency Service, said: "Sam Eustace knew he was taking people’s hard-earned savings as part of a scam and has left countless people out of pocket.

"The Insolvency Service will not hesitate to investigate and use its powers against those engage in this kind of fraud."

Sam Eustace, also known as Samuel Jaz Eustace, is of Sutton and his date of birth is October 1985.

Kingsman Property Ltd has company reg no. 09822551).