Regulation  

Former IFA given two extra years in jail

Former IFA given two extra years in jail

A former IFA has been sentenced to an extra two years in prison for failing to pay a confiscation order made against him.

Phillip Boakes was originally jailed for 10 years last March after defrauding investors of £3.5m and using the money to pay for Italian sports cars and Caribbean holidays.

A confiscation order for the sum of £165,731 was also made but the period afforded to Boakes to pay this money expired on 2 February 2016.

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As of today (15 March) the money remains unpaid and interest is accruing at the daily rate of £36.32.

Mark Steward, director of enforcement and market oversight at the FCA, said: “The FCA welcomes the court’s decision today.

“Wrongdoers should not be able to retain the benefits of their wrongdoing. The FCA will continue to ensure orders to strip wrongdoers of their ill-gotten gains are enforced and not ignored or evaded.”

The additional two-year sentence will be served consecutively to his existing jail time, which was upheld by the Court of Appeal in November.

Boakes was a registered adviser until 2008 but told some clients he was still an IFA, promising guaranteed returns through his company Currency Trader Ltd.

In March he has been given the longest sentence imposed to date as a result of an FCA or FSA prosecution.

Boakes, who lived in Warwickshire before being jailed, claimed to carry out foreign exchange spreadbetting for his customers.

People were encouraged to invest on the promise of guaranteed annual returns of 20 per cent or more, but Boakes was not authorised by the FCA to accept deposits and the pledge of guaranteed returns was a sham.

But according to the FCA his trading was disastrous and Boakes lost nearly £1m on the £2.1m he poured into the foreign exchange markets.

In reality the returns were funded from the deposit itself or from funds received from new investors.

Boakes spent around £1.3m funding his lifestyle, including £175,218 on cars – including a Maserati and the down payments on a Ferrari – and £213,659 on foreign holidays to the Bahamas and St Lucia.

The sums lost by the individuals ranged from about £10,000 to £700,000.

All monies recovered from Boakes, who was was banned by the FCA in December, will be used to compensate the victims of his crimes.