Three former bosses of a UK metal trading firm have been imprisoned for a total of 25 years and six months after defrauding £359 million from creditors.

Virenda Rastogi, Anand Jain and Gautam Majumdar who worked for RBG Resources were all sentenced at Southwark Crown Court.

The three men were found guilty of creating an imaginary database of 300 clients to gain cash from bank on both sides of the Atlantic.

Virendra Rastogi, former chairman, was sentenced to nine years and six months in jail and disqualification from acting as a company director for 15 years.

-- Advertisement --

Director Anand Jain was handed down an eight-and-a-half year sentence and Chief Executive Gautam Majumdar, was imprisoned for seven years and six months.

The scandal was uncovered when false documents were unintentionally sent to the company's auditors.

The fraud related to incidents which took place between 1996 and 2002 and also an investigation by the Serious Fraud Office (SFO).

Paige Rumble, the lead SFO investigator on the case said it was "a truly audacious and ruthlessly efficient fraud that ranged from the poorest areas of India to the corporate tower blocks of Manhattan".

Judge HHJ Wadsworth passing sentence said the three men "created a very impressive front that fooled banks, the metal exchanges in the UK and US and well respected accountancy firms".

It is reported that up to 324 client companies were involved in the scandal. The loss to the banking industry is estimated to be £343.3 million.

Rastogi appeared in the Sunday Times Rich List.