Disgraced Financier's Benefit Fraud

A notorious fraudster, jailed for funding his Mayfair “lavish lifestyle” with money stolen from investors, claimed housing and council tax benefit on his release despite a £66,000 inheritence from his mother.

Disgraced independent financial advisor Gary Cawthorne, 49, of Bloomfield Road, Bromley has already blown the cash windfall and is repaying his local council at the rate of £20 per month.

Between 2003 and 2007 he stole large sums from his clients, leaving them bereft of their life savings, struggling to pay their mortgages and living in fear of losing their homes.

He swapped him home in upmarket Hill Street for a prison cell after receiving four years and eight months imprisonment after pleading guilty to fifteen offences, which included theft, evasion of liabilty by deception, obtaining a money transfer by deception and fraudulent trading.

Despite never registering with the Financial Services Authority Cawthorne ran a company offering mortgage advice and attracted clients with promises of sky-high returns, often lavishly wining and dining women and convincing them to remortgage their homes.

After his conviction a £450,000 confication order was made against Cawthorne under the Proceeds of Crime Act.

He pleaded guilty at Croydon Crown Court (pictured) today to dishonestly making a false representation in relation to a housing benefit claim to the London Borough of Bromley on or about April 13, 2011, namely that he failed to fully declare his capital.

He also admitted dishonestly failing to notify the council of a change in circumstances between January 2 and May 24, last year.

The court heard his bank account was credited with payments of £35,000 and then £31,000 left to him by his mother, but it has now all been spent.

Jobless Cawthorne swindled £3,895 out of the council between April 11, 2011 and January 2, last year.

He studied for a psychology degree with the Open University while in prison and was released in April, 2011.

Cawthorne was sentenced to a twelve month community order, which includes 140 hours community service work and was ordered to pay £1,000 costs.