A CITY trader who conned investors out of millions of pounds has pleaded guilty to fraud.

Terry Freeman, 62, of Whitehall Lane, Buckhurst Hill, who owned the company GFX Capital, based in The City, admitted running a 'ponzi' scheme, where he hid the fact that he was losing investors' money on the stock markets.

Instead of making them a profit, he spent their money on his lavish lifestyle, which included holiday homes in Cyprus and France, a top-of-the-range Land Rover, an executive box at Tottenham Hotspur and gifts for his wife, according to the City of London Police.

One of his victims, 52-year-old roofer Peter Beeson, who lost £600,000 of savings, was at Southwark Crown Court yesterday (Wednesday) to hear the plea.

“It was nice to actually hear him say 'guilty',” he said. “He should have held his hands up a year ago.”

The Hornchurch resident is a founding member of the GFX Action Group and said he helped police access computers proving what Freeman was doing.

“I knew something was wrong in December 2009 because I have a friend who worked there, who told me on several occasions that people came and threatened to take their money back,” he added. “I confronted (Freeman) and he said my money was in a foreign bank. I rang the bank and they said it wasn't there.”

Police say the 350 people involved in the scheme lost about £14 million, but Mr Beeson, who is a founding member of the GFX Action Group for victims, said its members had lost £17.5 million.

Another victim was said to have handed Freeman £1.5 million, received reports from GFX Capital that his money had grown to £2.7 million and later found that he had just £15,000 left in his trading account.

The GFX Action Group is challenging the Financial Services Authority (FSA) over claims it failed to regulate Freeman.

Mr Beeson said the guilty plea would force the FSA to speak to his group about the case.

Freeman is due to be sentenced at Southwark Crown Court on February 14.