Britain’s Got Talent semi-finalist Liam James Collins and business partner David Bone took £874,000 from investors between January 2010 and April 2011 for a property investment scheme.
The pair promised returns of between 8 and 10% to investors but instead used the funds to pay business expenses.
This business was set up soon after the failure of a similar property scheme operated by the duo which had collapsed owing £3m to investors.
The Insolvency Service said that the duo had failed to carry out the property investment that was expected and had misled investors when they questioned the business.
It said the Financial Conduct Authority issued a warning to the business but Collins and Bone, a fellow dancer, continued to take money from the public.
Bankruptcy orders were made against the pair in May and each has received restrictions for the next 14 years, including being disqualified as directors.
Collins took part in the ITV talent show in 2009 as part of the Faces of Disco comedy dance troupe, competing against acts including Susan Boyle.
The Insolvency Service’s Ken Beasley said: “At a time when they were already heavily indebted Collins and Bone took substantial sums of money from members of the public with the promise of high returns on property investments with no reasonable expectation that they would ever be able to meet the repayments promised to investors.
“The Insolvency Service investigates the circumstances of all bankruptcies and will use its enforcement powers to tackle serious misconduct of this kind.”
