Two businessmen who duped investors out of millions have been jailed for a total of 10 years.
Ian Shakespeare and David Frisby were jailed after being convicted of fraudulent trading while they were directors of a group of Derbyshire-based companies.
Derbyshire Police’s economic crime unit started investigating the pair in 2009 following a complaint from a shareholder of Zoemack Ltd, which was originally based in Chapeltown but later moved to Barlborough, that their investment funds had been misued.
The guilty verdict came after a 15-week trial at Notts Crown Court.
Zoemack Ltd went into administration in 2008, owing £7m to 90 private investors and more than £7m to High Street banks.
Detective Sergeant Andy Small, said: “Investors and lenders involved with the company were duped into thinking that their money was being used for the sole purpose of purchasing and developing distressed properties. In reality, large amounts of their money was used to fund the lavish lifestyles of the two defendants, their families and their friends.”
“Many of the private investors were planning for their financial security as they entered their hard-earned retirement, but they were conned into re-mortgaging their family homes and cashing in their pension to invest in the scheme.”
Shakespeare, 53, of Cypress Grove, Wales, Rotherham, was convicted of fraudulent trading and was jailed for seven years.
Frisby, 68, of Haugh Road, Rawmarsh, Rotherham, was convicted of two counts of fraudulent trading and was jailed for two-and-a-half-years.
Det Sgt Small added: “The result of this case doesn’t bring back the financial security that the victims had worked for, but I hope it gives them some sense of satisfaction that justice has been done. These two defendants will now have the futures they deserve.”
“We will continue to work hard to recover any assets Frisby and Shakespeare have gathered, in the hope that we can secure some form of compensation for the victims.”