Financial advisor who used fake Bank of Scotland account to embezzle £14m of client money jailed

After a successful career at Barclays Bank, Freddy David, 49, had become the managing director of HBFS, a “bespoke wealth management and financial advisory firm” regulated by the Financial Conduct Authority.

David owned 75 per cent of the company shares while his wife, Hannah David, owned the remaining 25 per cent.

Prosecutor Jonathan Polnay, outlining the case for Mrs Justice Taylor told Soutwark Crown Court that David had abused his position at the firm to sell investment products that simply did not exist, primarily an imaginary Bank of Scotland account that offered a high interest rate.

Rather than invest on behalf of his clients, David transferred money it to his own account, investing in the “Let’s Meat” restaurant in London’s Borehamwood, in school fees for his three children, on holidays to Israel and on gambling websites.

While this went on for almost a decade and a half, victims were provided with forged documents from the Bank of Scotland, purportedly confirming that the investments had been made, the court heard.

The majority of the 55 victims were elderly or disabled and known personally to David, who frequently visited his targets in their homes.

David was jailed for six years and disqualified from being a company director for 10 years.

He will now be subject to confiscation proceedings to pay back the money stolen.

Anton Allera, of the CPS, said: “Freddy David was trusted by his victims who invested their life savings with him. They trusted him as their financial advisor but many also considered him a friend or acquaintance through the Jewish community.

“The impact on some victims has been devastating, leaving them in long term financial distress.

“The CPS worked closely with the City of London Police and presented a very strong case. The evidence showed the investments of each victim and where David had deposited their money, leading him to plead guilty.”