In what has been dubbed the biggest order in England’s criminal proceedings, Inner London Crown Court has ordered by way of confiscation almost £41m from Gerald Smith, a former Izodia director, who is currently serving eight years’ imprisonment after pleading guilty to ten counts of theft and one count of false accounting.
His prison sentence was handed down in September 2006, and he has been given 12 months to pay. A default prison sentence of eight years’ will apply on non-compliance with the confiscation order of £40.95m.
Compensation orders were made, to be paid out of the confiscated funds. They were made in favour of Izodia in the sum of £5.3m and the Royal Bank of Scotland International, Jersey in the sum of £21.3m
According to the Serious Fraud Office, Izodia traded in computer software and when the dot-com bubble burst, became a cash shell. Smith, through his Jersey-based property business, the Orb Group, acquired a substantial stake in Izodia and was able to exert control. As a result, Izodia’s cash asset held at the Reading branch of Royal Bank of Scotland was moved to Jersey where it was stolen by Smith.
Further reading:
Izodia director jailed for eight years over false accounting
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