A notorious fraudster who flew round the world and splashed out on fine dining in the West End while owing taxpayers tens of millions of pounds in an unpaid court order is facing prison after being convicted of a Covid loan scam. Gerald Smith, who has already served two prison sentences for fraud, was found guilty at Southwark crown court of cheating the public by taking out a £50,000 “bounce-back” loan during the pandemic to pay the legal fees of one of his closest associates. He had denied the charge but was told by the judge after the jury convicted him that he could expect a jail term because of his previous offending when he is sentenced in September.
Smith’s potential incarceration follows years in which he has managed to avoid a return to jail despite failing to pay a confiscation order that now totals £82 million including interest. It was imposed in 2007 following his conviction the previous year for a £34 million dotcom fraud. He was given an eight-year jail term for that crime but has since managed to avoid going back to prison to serve a default sentence for non-payment of his debt.
Smith also dodged prison when he was handed an eight-month suspended sentence following his conviction two years ago for breaching a court order that prevented him from spending or accessing his assets, except in limited circumstances. . The High Court heard then how Smith, now 69, had flouted the order by opening undeclared bank accounts and using the money to pay for “extr.