15-year ban for ‘Ponzi scheme’ accountant

A DISGRACED Lancashire accountant who is already serving a six year prison term for running a Ponzi-style investment scheme, has been banned from acting as a company director for a maximum term.

Geoffrey William Langdale, 64, has been banned by the Insolvecy Service for obtaining more than £2.3m from clients.

Langdale traded as an accountant in the Lancashire area from 1993, and in 2003 Langdales Accountants Limited was incorporated to continue the work of Mr Langdale’s sole trader business.

The Insolvency Service’s investigation found that between June 2002 and June 2013, Langdale dishonestly obtained money transfers totalling £2.3m from clients.

He told clients these funds would be invested in a high interest-bearing savings account and would require a 90 day notice period before they could be withdrawn. In fact, the funds were spent by Mr Langdale and he used deposits by subsequent investors to pay earlier investors, effectively a ‘Ponzi scheme’.

Only £1.1m was repaid, resulting in losses to clients of more than £1.2m.

Langdale was convicted in August 2014 at Bradford Crown Court on an indictment of obtaining a money transfer by deception and on 26 September 2014, he was sentenced to six years imprisonment in relation to these offences.

Commenting on this case, Robert Clarke, group leader of insolvent investigations north at The Insolvency Service, said: “The imposition of a ban for the maximum period of 15 years sends out a clear message that where a company director abuses a position of trust in order to persuade clients to part with their money, the Insolvency Service will take action to remove that director from the business environment for a lengthy period of time.”

Langdales Accountants went into Creditors Voluntary Liquidation in February 2014.