One of Britain's most notorious fraudsters spent more than £6,000 at exclusive restaurants in London while owing taxpayers tens of millions of pounds.
The High Court has heard how Gerald Smith also allegedly concealed ownership of three central London apartments to avoid paying an £80million court order.
The 69-year-old doctor-turned-financier was originally jailed for 18 months over the bounce-back loan after he spent £22,000 of it on court fees relating to a 2006 fraud case he was involved in, City of London Police said.
His latest theft led to the collapse of the stock market-listed company and with shareholders losing all their investments.
Gerald Smith spent the money a fancy restaurants including The Delaunay
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Back in September, he was jailed after fraudulently receiving a £50,000 government-backed Covid loan to help pay a £72m court order linked to a previous fraud case.
Now, he has been brought back to the High Court from Brixton Prison in south London.
The Serious Fraud Office obtained a court order requiring Smith to pay back nearly £41m, at the time the largest order to be made in criminal proceedings.
The amount owed with interest has since risen to £80m.
After being released from prison Smith was eventually allowed to spend £2,000 a month on living expenses.
However, he overspent by almost £15,000 during the two years to January.
Investigators discovered that he spent more than £6,000 on visits to Michelin star restaurants and celebrity haunts in the West End of London, including the Delaunay, Scott’s, Soho House, 45 Jermyn St and Royal China.
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Gerald Smith arriving at Southwark Crown Court in London
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He has been accused of repeatedly breaching orders to repay the money stolen from Izodia with his lavish spending.
This included holidays in Dubai, Hong Kong, Vancouver and the Maldives, making 105 trips on a private jet in a single year as well as buying cars including a Porsche and a Bentley Continental. He also tried to buy fine art including works by Renoir, Matisse and Rodin.
The court was told how Smith has used family, friends and offshore companies to conceal his assets from investigators. He also reportedly attempted to prevent the seizure of three apartments he owned in Bloomsbury, central London.
Smith, representing himself, told the court: "I accept that money went into these [bank] accounts from my brother [Anthony]. Whether that money ever became mine or remained my brother’s is unclear. It is very technical."
The court was told he tricked Dr Richard Morris, a friend from medical school into claiming to have the legal right to one of the apartments and then "installed two young women" in the property to continue the deceit.
Kennedy Talbot KC, representing the Serious Fraud Office, told the high court: “It is hard to say when Dr Smith is doing this. He may enjoy the fight, he may not agree with the judgment, he may be trying to negotiate a new settlement."
Justice Henshaw reserved his judgment on the three alleged cases of contempts of court.
