An unauthorised stockbroker who stole more than £350,000 from his family and friends has been jailed for 15 months after a rare criminal prosecution by the Financial Services Authority (FSA).

William Radclyffe, 63, who pleaded guilty to 15 offences, including theft, was sentenced at the Old Bailey on Monday afternoon. His victims included a former girlfriend and a close friend.

Radclyffe’s is only the third criminal conviction secured by the FSA under the Financial Services and Markets Act.

In 2005, two directors of AIT, a London Stock Exchange-listed software group, were convicted of market abuse. One was jailed for three and a half years and the other for two years.

Radclyffe, a former authorised stockbroker, lost his FSA certification after his previous business closed down.

According to FSA prosecutors, between 1997 and 2004 he continued to advise clients on managing their share portfolios while gradually transferring assets into his own account.

The prosecutors told the court that Radclyffe created a fictional fund manager known as Robert Pitman and used the alias to send his clients portfolio updates.

At sentencing, His Honour Judge Wiggs said: "You knew your actions were unlawful and those who suffered would not have course to recompense. You breached the trust of people who trusted you and regarded you as a friend."

Margaret Cole, the FSA director of enforcement, said: "Mr Radclyffe breached the trust of his clients, many of whom were friends, without consideration for how they would suffer by his actions.

“We hope others considering such dishonest conduct will take notice of the custodial sentence imposed. Our prosecution of this case is indicative of the FSA's determination to deter wrongdoing of this sort."

Since Radclyffe was not authorised at the time of his offences, his victims will not be able to claim for compensation via the Financial Ombudsman Service or the Financial Services Compensation Scheme.

The FSA did not say whether Radclyffe was ordered by the court to compensate his victims. It is possible that they could bring a separate civil damages claim against him.

Explore Law

• Columnists

• Law Panel

• Law Reports

• Student Law

Times Recommends

• The best legal yarns this Christmas
• Legal school 'earned £1m by exploiting bar course'
• Axe may fall on 5,000 more City lawyers