BusinessCompany NewsCourt confiscates £41m from Izodia director

Court confiscates £41m from Izodia director

The court has ordered Gerald Smith, convicted of misappropriating funds from dot-com company Izodia, to pay back almost £41m

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

UK software firm Izodia folds

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