A former adviser and his business partner were found guilty of six charges in relation to giving unauthorised advice and concealing facts by a court on Thursday.
Gary Hexley and John Cooper were held responsible for giving financial advice to elderly investors without holding relevant permissions over a period of 18 months, and for failing to inform those investors that they were not authorised to give the advice and their firm had gone bankrupt in 2010.
The pair were found guilty on six counts and two counts respectively under the Financial Services and Markets Act, at Birmingham Crown Court, following a 29 day trial.
They were released on bail and their sentencing scheduled for 14 November.
Cooper was also found guilty of advising a client to invest £160,000 in a start-up fund in Mauritius since his permissions had been taken away by the Financial Services Authority (FSA) in June 2011.
The court had heard that Hexley had netted more than £74,000 in commission and Cooper more than £6,000 in the 18 month period when they were not authorised to give financial advice, according to a local newspaper report.
It also said that the crash of Hexley's property firm Greenfield International in 2010 had left a total of 237 creditors with debts of £2.1m.
Hexley was made bankrupt with liabilities of nearly £1m in May 2010 and banned and censured by the FSA in 2011.
He was charged by the FSA in relation to giving unauthorised advice in October 2012.
Both defendants denied all charges but Hexley admitted that he had failed to mention to clients that he had been made bankrupt in 2010.
Hexley was cleared of two charges and Cooper of three.
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