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A Jersey doctor-turned-entrepreneur convicted of stealing £35m from a software company has avoided jail for breaking an asset freeze order by using three secret accounts to fund “lavish” spending at bars, restaurants and wine merchants.
In London’s High Court this morning, Gerald Smith admitted a total of three separate breaches, which totalled £57,000 in withdrawals over 15 months.
He was handed eight months behind bars, but the court decided to suspend the sentence for 18 months. Should he commit any criminal offence during that time, he will be brought back to court and his sentence may be activated.
Smith was previously jailed for eight years in 2006 for channelling funds from IT company Izodia into his investment business, Jersey-based ORB Group.
Following his release, however, it emerged that he had lived a life of luxury, having blown millions on fine art, flights and jewellery, among other extravagances.
After a legal fight last year, the Serious Fraud Office secured control of his assets.
In May, he admitted two instances of contempt by continuing to operate accounts.
That case then had to be adjourned when the Serious Fraud Office discovered a third account. Today, he pleaded guilty to a third instance of contempt and was handed the eight-month suspended sentence.
His spending was uncovered by the Serious Fraud Office using its powers under the Proceeds of Crime Act 2002.
During sentencing, Mr Justice Butcher described the breaches as "substantial", adding: "This is a serious matter. The breaches were intentional, there were three of them and they were over a significant period of time."
Emma Luxton, the SFO's Head of Proceeds of Crime and International, commented: "Gerald Smith has repeatedly failed to co-operate in the repayment of his confiscation order and has now flagrantly disregarded the restrictions imposed on his assets.
"Having displayed such clear contempt for the rule of law, today's ruling is welcome news.
"The SFO is resolute in the pursuit of justice and refusal to accommodate those attempting to conceal the proceeds of crime, no matter how many years have passed since their crimes were committed."
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