Investors are set to sue convicted fraudster, Danish-born Bjorn Stiedl, over a technology investment scheme, which, they claim, cost them £22m.

Stiedl is currently serving a four-and-a-half year sentence in Britain for pension fraud and is already being sued for allegedly stealing £4m through a tax-avoidance plan relating to a film financing scheme Bedford Row, the Financial Mail reported.

The technology scheme - GenTech - was set up to buy computer technology and the deals were intended to make a loss so that the investors - all higher-rate taxpayers- could claim rebates to offset against their incomes.

The matter was investigated by KPMG last year and the report is understood to have been highly critical of the scheme.