An investment manager with connections to two Isle of Man-registered companies and bank accounts here has been jailed for 14 years for fraud.

The companies are Synergy (IOM) Ltd and Synaxus Holdings Ltd.

Timothy Schools, aged 61, the manager for the Cayman Islands-based Axiom Legal Financing Fund, was convicted by a jury at Southwark Crown Court on five counts of fraudulent trading, fraud by abuse of position and money laundering.

Sentencing will take place today (August 11).

The SFO investigation found Mr Schools dishonestly acquired more than £19.6million from the Axiom loan monies, including more than £5.7million from audit and management fees he dishonestly added to the law firm loans.

The money were transferred and hidden in offshore bank accounts (including two personal accounts in the Isle of Man) held within complex overseas trusts, and used to finance a lifestyle that included the purchase of shares in a luxury ski hotel in France, a motor boat, luxury cars and a £5 million fishing and shooting estate in the Lake District, bought through an offshore company.

The Axiom Fund was set up in 2009 by Mr Schools to provide loans to law firms pursuing no-win-no-fee cases. The Axiom Fund secured over £100 million from approximately 500 investors, who were promised a secure return on their investment.

Whilst investors were told their loans would be provided to a panel of high quality law firms to fund legal cases with a high likelihood of success, the majority of the funds (amounting to £40 million) were paid to just three law firms – ATM, Ashton Fox and Bracewell’s – all of which Mr Schools either owned or held undisclosed interest in.

The loans provided to these law firms were siphoned off by Mr Schools. He used funds received by ATM Solicitors to pay himself more than £1million in salary, consultancy fees and other personal benefits.