In a statement released on 14 June, the City of London Police said Freddy David, who was managing director of HBFS Financial Planning, has been charged with obtaining money transfer by deception and fraud by abuse of position.
The statement further says David was both charged and released on bail on the morning of 14 June, with an order to appear at the City of London Magistrates Court on 2 July.
The police started investigating David and HBFS Financial Services in May 2017, following a referral from the Financial Conduct Authority (FCA).
£13m still owing
According to a letter seen by London newspaper The Jewish Chronicle, insolvency practitioners B&C Associates said HBFS owed money to 61 creditors totalling £13,301,696.
The letter further says HBFS was wound up in March, and the summary of the firm’s assets suggests there is only $459,710 to pay back creditors.
According to the newspaper, a second man, Rabbi Benji Silverstone, head of HBFS Wealth Management’s Manchester officer, was also arrested in December.
City of London Police confirmed to the publication that he is also still under investigation.