‘I am public enemy number one in the Jewish community’

A top financial advisor who stole nearly £15 million from his investors to pay his children’s private school fees and spend in casinos was jailed for six years.

Freddy David, 49, used his good reputation within the Jewish community as managing director of HBFS Wealth Management to sell non-existent opportunities to his clients.

David, who is married to a director to Conservative Party Policy Forum, claimed the schemes were backed by the Bank of Scotland and Barclays but he was really ‘robbing Peter to pay Paul’, Southwark Crown Court heard.

He used part of an £80,000 investment from one victim to set up a restaurant called Let’s Meat, make mortgage and school fees payments, visit Greece and Israel and feed his gambling addiction.

After his arrest he told police: ‘I am public enemy number one in the Jewish community and understandably so, I have very, very few friends left and I understand why.’

Prosecutor Jonathan Polnay said David had stole a total of £14,545,594 from a total of 55 clients over ten years.

Mr Polnay said: ‘This defendant was the managing director of HBFS, a company that provided wealth management and financial advice.

‘The defendant abused his position to sell investment products that simply did not exist.

‘The defendant did not invest the money on behalf of his client at all – he simply transferred it to his own account where it was spent.’

David handed his clients a fake certificate, which falsely stated that their investments had been made.

Mr Polnay said: ‘Some of the victims received money in return for their non-existent investments but in reality it was coming from other investors – it was robbing Peter to pay Paul.’

David had joined the wealth management company in 2000 after a stint at Barclay’s before buying it out from the previous owner in 2005.

In just four years he had doubled the turnover of the business, valued at between £14 and £16 million.

Mr Polnay said the fraudster had gambled around £36,000 just a few days before he was finally arrested.

He also transferred his mother around £176,000 while under investigation by the police.

David took £80,000 from one victim, Levana Elyahou, of which he spent £14,768 on a creating restaurant called Let’s Meat, £14,000 on gambling, £7,000 on mortgage repayments and £4,801 on school fees repayments.

He also spent £3,690 on a trip to Israel as well as spending on a trip to Greece.

Defence counsel Andrew Trollop QC said David had lost £11m on gambling over the last 14 years.

He told the court: ‘Over a period of fourteen years over 10,395 gambling transactions took place. That’s to say there was gambling everyday, twice a day. Bets placed with over ninety-six gambling companies spending around £17 million – he lost £11 million on gambling.’

Mr Trollop said David was ‘an acknowledged fraudster who was on the one hand stealing clients’ money and on the other hand managing his clients’ money responsibly and honestly.’

The barrister added: ‘He does have a deep sense of shame for what he has done and is equally deeply remorseful for it.

‘He, of course, knew all or many of his many clients and knows only too well how dreadfully he has let them down.’

David held 75 percent of the company while his wife, Hannah David, owned 25 percent.

She is a director at the Conservative Party Policy Forum and has previously been a Tory parliamentary candidate.

Judge Deborah Taylor told him: ‘You took their money and gambled it away at the casino – you took advantage of your reputation within the community.

‘The company was part of the FT 100 most successful managers for several years.

‘You tried to stave off the chance of discovery by paying back investments with other clients’ money. Your criminality has caused, not only loss, but despair to many.

‘I have taken into all that has been said on your behalf. There is no doubt that you have lost your reputation and your business and that your have suffered ostracisation from your community.’

She went on to explain that the fraud had been exacerbated by the fact that 55 investors were defrauded for over a period of ten years.

Speaking after the trial, victim Shiri Koren said: ‘That man is not just deceitful, he’s evil. All of this has put his family to shame.’

She explained that her father, who had invested with David, was unable to attended because he was bed bound due to multiple sclerosis.

The family was now unable to pay for the two physiotherapy sessions he had each week prior to the fraud because of the enormity of the financial loss incurred.

Detective inspector Mark Forster said: ‘Today’s sentence reflects the severity of the fraud, it should serve as a warning to those who think they could get away with these scams.

‘The fraud had been going on for in excess of ten year and we were surprised that it wasn’t picked up but Freddy David was very good at hiding it.’

Freddy David, 49, of Hartfield Avenue, Borehamwood, Herts pleaded guilty to one count of fraud by abuse of position and one count of obtaining a money transfer by deception.

He was sentenced to 4 years for the first count and 6 years for the second to be served concurrently.

David was also banned from acting as a company director for 10 years.