Details of the death of David Seaton, the founder of Rowanmoor Pensions, were revealed in an inquest yesterday.
Seaton's body was found on a beach in Kilkhampton, Bude, North Cornwall after he disappeared in September 2009.
On Monday, a verdict of suicide was passed by deputy assistant coroner for Cornwall Barrie Van Den Berg.
The inquest heard the 57-year-old had jumped from a cliff whilst he was under investigation for fraud against a single client, who lost £1.1m after being told their investment would be worth just under £2m.
The investigation began in June 2009 when a colleague wrote to Seaton asking to take over the client's fund, only to find all the money had allegedly been removed to Seaton's own accounts.
According to Van Den Berg, Seaton killed himself as a "way out" of his crime.
Seaton's death shocked the pensions world, with many lauding his campaigning efforts on behalf of the industry.
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From 1 March