A fraudster who used clients’ millions to fund a lavish lifestyle will stay in jail for an extra 603 days – on top of the 7 years he was already given.

Alex Hope, who was entrusted by 100 investors with £5.5 million, was today sentenced for failing to pay the full £166,696 of a confiscation order made against him in February, the FCA reported.

The period afforded to Mr Hope to satisfy the Order expired on 12 May. As of today’s date, Mr Hope has paid just £1,000 in satisfaction of the Order.

As of today’s date, a total of £5,018.97 has accrued in interest and interest will continue to accrue at the daily rate of £36.32 on his outstanding balance.

Even after having served the sentence in default of payment, Mr Hope will continue to be liable for the outstanding debt.

This 603 days in jail is in addition to a term of 7 years’ imprisonment that Mr Hope received on 30 January 2015.

An FCA statement read: “On 9 January 2015, Mr Hope was convicted of defrauding investors of significant sums, having previously pleaded guilty to operating a collective investment scheme without authorisation.

“In total, over 100 investors entrusted Mr Hope with over £5.5 million on the promise that their funds would be used to generate substantial returns by his trading on the foreign exchange markets.

“In reality, only 12% of the total sum investors gave was ever traded and when Mr Hope did trade, he lost almost all of the money in his trading accounts.

“As a result of the work of the FCA, almost £2.65 million was identified and frozen in accounts controlled by Mr Hope, which was returned to investors earlier this year.

“Mr Hope spent a significant proportion of the remainder of the funds on a lavish lifestyle, including gifts to family and friends.”

Mark Steward, director of enforcement and market oversight, said: “The FCA will continue to make sure wrongdoers do not profit from their crimes at the expense of victims. Confiscation orders cannot be ignored and will be enforced.”

Under the Proceeds of Crime Act 2002, the value of tainted gifts can be recovered and Mr Hope was ordered to pay a sum equal to the value of the gifts he made to friends and family.

All money recovered from Mr Hope will be used to compensate the victims of his crimes.