A FINANCIAL adviser who stole £1.75 million from his vulnerable, largely elderly clients squandered the fortune on an online gambling habit.
Philip Smith, 48, who lived in luxury in stockbroker belt Cheshire, pleaded guilty yesterday to 49 offences of theft, money laundering, false accounting and forgery.
The grey-haired conman would lavish time and effort to earn the trust and charm his way into the affections of his clients before plundering their credit cards and bank accounts.
Among a catalogue of crimes, he stole £185,000 from a woman in her 60s and an £82,000 legacy bequeathed to a 36-year-old man with severe learning difficulties.
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When the executor of one 84-year-old man’s will began asking questions about a missing £31,000, Smith produced forged paperwork and receipts to suggest that the dead man had spent the money on foreign trips and double glazing.
Altogether, Smith, a former Lloyds TSB banker, from Bowdon, stole cash from 51 clients who signed up to his investment service. The money, including £42,000 stolen from his brother, went on betting accounts with Betfair, Stanley James, Blue Square and Spread Ex. When police caught up with him they discovered that he lived in a comfortable detached surburban house worth £550,000, drove a BMW 7 series car, had a £170,000 villa on the Costa del Sol and a chalet in Porthmadog, North Wales.
The judge at Minshull Street Crown Court, Manchester, told Smith that he faced a lengthy prison sentence. Detectives discovered that he had convinced his victims to hand over credit card details, raised their credit card limits without their knowledge and diverted many of their bank statements to keep them in the dark. On at least one occasion, Smith impersonated a person who was actually dead on the telephone to arrange for financial products to be surrendered. In doing this, he plundered money from an elderly woman who had recently lost her husband. Only £500,000 of the money invested by his clients was returned.
Detectives believe that he squandered £2 million on gambling.
David Friesner, for the prosecution, told the court: “There are no hidden assets in this case. It appears all of the money essentially seems to have been gambled away.” Smith’s criminal activities came to light in March 2005 when a fraud investigator at a building society noticed suspicious activity on an account Smith had set up jointly with an 87-year-old retired teacher from Stockport.
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He wrote several letters to the woman, but she did not receive them as Smith had diverted correspondence to his home. The investigator then informed social services and subsequently the police.
In March last year officers visited the woman and discovered that she had no idea that financial products worth £115,000 had been surrendered and that £111,000 of this money had been stolen by Smith.
While officers were there, Smith arrived and was subsequently arrested. He eventually admitted stealing £151,000 from the woman.
After the hearing Dilys Booth, 65, of Harrogate, explained how she lost £40,100 to the smooth talker.
She said: “I thought he was very nice, very friendly and helpful. He was a true Scouser, he had the gift of the gab.
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“He phoned me and asked if he could use my Barclaycard because he was a bit short. He said he needed to pay for air fares for his clients to come out to his properties in Spain for holidays. I happily let that carry on for years.
“It was only in the last three months before he was arrested that I became concerned. He was not paying off nearly enough, and I told him I would be contacting Barclaycard to cancel the account so he could not use it anymore.
“He assured me everything was under control, but I wasn’t satisfied and I decided to do a bit of digging myself. I found a phone number for Betfair and worked out what it really was.
“I confronted him about it but he assured me the company sold stocks and shares as well. He was so plausible in everything he said that I believed him again. I’m not stupid but he was such a good liar.”
Outside court DC John Ashington said: “He has left dozens of decent and hard-working people feeling shocked, shattered, betrayed and angry.”