A conman dubbed the British Madoff who swindled up to £14million from more than 300 victims was today jailed for eight years.
Terry Freeman seduced investors into handing over hundreds of thousands of pounds to him and his company, GFX Capital, with the promise of huge financial returns.
The 63-year-old, last month pleaded guilty to fraudulent trading and a string of other offences after splashing the cash on a lavish lifestyle.
Cheers and clapping erupted from the packed public gallery at Southwark Crown Court as Freeman was given the jail sentence.
Judge Christopher Hardy said the matter was 'not a classic ponzi-type fraud' but was nonetheless 'one of the most serious cases of this type I've had to deal with in this court'.
He told Freeman, of Kings Place, Horsham, West Sussex: 'You were not dealing with big institutions, but ordinary hard-working men and women and their families who trusted you to invest their hard-earned life savings, pensions and inheritance and the like, and for them in reality all is likely to have been lost.'
Described as the British Bernie Madoff after the disgraced Wall Street financier who ran the largest-ever $65million Ponzi fraud in the US, police believe that Freeman may have stolen as much as £23million, but only 335 of his 700 victims have come forward.
Freeman, who has previously spent time behind bars, had also admitted engaging in business while bankrupt and acting as a company director while bankrupt.
Judge Hardy said he had an 'appalling record of dishonesty', and added: 'Had they known this they would have run a mile instead of investing their life savings with you.'
Between January 2006 and February 2009, the fraudster hid the fact he was losing investors' funds on the markets.
While his 335 victims entrusted their savings to him, he snapped up luxuries including a holiday home in France, a Range Rover, an executive box at Tottenham Hotspur FC and jewellery.
The house of cards came tumbling down in 2008 after he bought heavily into American investment bank Lehman Brothers, which subsequently collapsed, losing him and his clients millions of pounds.
He initially covered up his crimes by moving funds around Saxo Bank trading accounts and issuing false GFX statements telling investors they were all making healthy profits.
Stephen Hellman, prosecuting, said: 'Following the collapse of Lehman Brothers, he used money belonging to some investors to make payments to other investors instead of trading it.'
He said this happened after Freeman, who changed his name from Terence Sparks after leaving prison in 2000, received threats from angry investors.
After reporting the threats to police in February 2009, Freeman admitted losing funds and was subsequently arrested.
The court heard an impact statement from roofing contractor Peter Beeson, 52, who lost £600,000 of investments.
He said the losses have ruined his plans for early retirement and to help his two daughters get on the property ladder.
'This was pretty much the full wealth of my family,' the court was told.
'I feel I've let my family down as my judgment as always previously been sound.
'I'm very angry with myself. I have to live with these feelings for the rest of my life.
'Unfortunately I also introduced other friends and family into the operation and they too have lost considerable sums.'
Another victim, Barbara Shapero, felt confident enough to entrust her money to Freeman after finding him registered on the Financial Services Authority website, the court heard.
Some £4.4 million has been recovered through a civil settlement spearheaded by action groups, but there remains a shortfall of £9.6 million.
In mitigation, David Stern stressed that Freeman's operation was 'not a ponzi scheme or anything of that nature'.
He said his client was remorseful, and posed a low risk of offending again because of health issues.
After the judge passed sentence, Mrs Shapero said she was 'thrilled' with the result.
'We were so scared he wouldn't get what he deserved. He's a menace to everybody,' added the 65-year-old, who said she lost more than £400,000.
Mr Beeson, of Hornchurch, Essex, said: 'It's good but not good enough. I'd like him to get more to keep him off the streets before he does more damage to anyone else.'
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