Adviser receives four year prison sentence for fraudulent trading

An investigation found that between 1st January 2008 and 31st July 2019, Hudson advised on regulated mortgages, pensions and other investments and purported to invest significant deposits received by him from clients on their behalf. At no point during this time was he authorised by the FCA to undertake these, or any, financial services, as is required by law.

In addition, while he told clients that the money they deposited with his business, Richmond Associates, would be invested in various financial vehicles or otherwise put to specific uses, this was not always the case. Instead he used those deposits to re-pay existing clients, to make payments to other individuals, or to fund his own lifestyle. In total, approximately £2m was deposited by Mr Hudson’s clients.

At Southwark Crown Court, Hudson was convicted of one count of fraudulent trading, with two additional terms of 14 months, each reflecting a breach of s19 FMSA, to run concurrently following his earlier guilty plea.

This followed charges laid by the FCA for carrying on a business for a fraudulent purpose and carrying on regulated activities when not authorised or exempt.

Confiscation proceedings are being pursued by the FCA and any sums recovered will be used to compensate victims.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: "Mr Hudson’s defrauding was calculated and persistent over a number of years, preying on victims who believed he was a financial adviser and trusted friend when he was neither of these things. We remind investors to check the FCA’s register of authorised person to ensure any financial adviser is authorised to provide financial advice by the FCA."