Shinder Gangar, from Leicester, and Alan White, from Nottingham, were sentenced to six years and three and a half years respectively for failing to pay back some of the $200m they made by defrauding victims.
They did this by operating a Ponzi scheme, in which returns were paid to investors by using the capital from new investors rather than profit earned from investments.
Victims’ money was spent on purchasing property, providing unsecured loans to acquaintances and speculative investment schemes.
Gangar and White originally received confiscation orders, forcing them to pay back some of the money they made from their crimes, of £2,750,000 and £1,200,000 respectively in 2010.
The sums were lowered to close to £2,289,100 and £687,000 respectively in 2012 by the Court of
Appeal, which declined to extend the January 2012 deadline for settlement.
To date, Gangar has paid just over £67,712, and White £145,208, towards their orders, said the Serious Fraud Office (SFO).
The Ponzi scheme was promoted through the Midlands based accountancy firm Dobb White and Co, of which both men were partners.
To add credibility, clients were told by the defendants that celebrities such as Lord Andrew Lloyd-Webber and Sir David Frost were investors. Both appeared in court as prosecution witnesses.
Mark Thompson, head of the proceeds of the crime division at the Serious Fraud Office (SFO) said: “The criminals have had ample opportunity to pay the order and broke several promises they gave to the court. The activation of their default sentences should serve as a warning to others of the consequences of failing to comply with confiscation orders.”
