A wealth manager well-known to London’s Jewish community is to appear before a judge and jury later this month charged with fraud totalling £14-15 million “spanning 15 years”.
The case of Freddy David, a former managing director of Hertfordshire-based HBFS, was referred to the crown court by City of London Magistrates on Monday.
Prosecutors said further witness statements were in the process of being added which would add “another seven figures” to the amount in question.
David, 49, from Elstree, did not enter a plea and was bailed to appear before Southwark Crown Court on 30 July, magistrates having concluded that the case was “too serious” to be heard by them.
One of the Jewish community’s best known financial advisers, been charged with obtaining money transfer by deception and fraud by abuse of position. He stepped down from HBFS late last year amid an investigation by the Financial Conduct Authority and was arrested in November.
He led the wealth management company, which says it helps clients “put off the taxman,” since 2005, and together with his wife Hannah – who stood as a Conservative Party candidate in Harrow West last year – he is thought to have owned it.
A spokesman for the firm last year sought to avoid customers’ panic, saying: “We will be cooperating fully with the FCA investigation into this matter. We have assured our clients that all money is completely secure.”
The company offers help placing money in offshore “wrappers” for those with £100,000 or more to invest, helping clients legally avoid capital gains tax, corporation tax and income tax. It also offers advice on trusts, ISAs, equities, bonds and pensions, and advises clients how best to legally avoid inheritance tax.