HBFS Financial Services of Borehamwood, Hertfordshire, was one of six firms ruled to be unable to pay claims against it.

The former financial adviser is currently in jail serving a six-year sentence after defrauding 55 victims out of £14.5m in a Ponzi scheme.

Mr David, formerly of Elstree, Borehamwood, admitted the offences when he appeared at Southwark Crown Court in July.

He was also disqualified from being a director of a company for 10 years.

The court heard how Mr David used the money he conned to fund his gambling habit, which saw him spend £15.6m on gambling websites and £240,000 in one day alone, as well as paying for holidays abroad and his children’s school fees.

A the time of sentencing Anton Allera, of the CPS, said: “Freddy David was trusted by his victims who invested their life savings with him.
“They trusted him as their financial adviser but many also considered him a friend or acquaintance through the Jewish community.

“The impact on some victims has been devastating, leaving them in long term financial distress.” 

Alex Kuczynski, chief corporate affairs officer at FSCS, said: “FSCS steps in to protect consumers around the UK when authorised financial services firms go bust.”

Mr Kuczynski urged anyone who has had dealings with Mr David’s firm to contact the FSCS.