Celebrity Ponzi accountants sent back to prison

istock_Andrejs Zemdega
1

Two former accountants who were previously jailed in 2008 for running a celebrity Ponzi investment scheme have been sent back to prison after failing to pay their confiscation orders.

Shindar Gangar has been sentenced to six years, while his business partner Alan White faces three and half years. In 2010 the confiscation order imposed against Ganger and White was originally set at £2.75m and £1.2m respectively, but was subsequently reduced on appeal. However, Gangar has only contributed £67,712.11 towards his payment, while White has handed over £142,208.12.

Ganger and White were first sentenced to seven years in prison in 2008 following a Serious Fraud Office (SFO) probe into their investment plan, which lured investors by falsely claiming Andrew Lloyd Webber and David Frost were stakeholders in the scheme.

The two men collected money under the investment plan marked by their practice, Dobb White and Co, which weren’t used to make investments, but instead shifted offshore and used to make interest payments to other investors.

Gangar and White also used the deposits to provide unsecured loans to acquaintances, purchase property and invest in other schemes.

A Baker Tilly investigation found that the accountants had managed to attract over £125m worth of deposits to the scheme.

Numerous professionals had invested in the scheme, along with a string of high profile clients such as Norris McWhirter of Guinness Book of Records fame, who reportedly invested half a million, and Terry Brady, father of former Birmingham City chief executive Karren Brady.

Commenting on the verdict, Mark Thompson head of the proceeds of crime division at the 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.” 

Richard Hattersley
Community Assistant
AccountingWEB
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16th Feb 2016 09:50

The activation of their default sentences should serve as a warning to others of the consequences of failing to comply with confiscation orders - Good job! Clearly, we're talking a lot of money here, so they can't expect to get away with it!

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