Broker Andrew William Hill received a six-month prison sentence at the Old Bailey this week after pleading guilty to a charge of fraudulent trading.
William Hill, who was sole director of brokerage Denis Hilton, had originally pleaded guilty to the charge at the City of London Magistrates' Courts in March.
William Hill admitted to misusing monies intended for the insurance broking account which should have been paid as premiums to insurance companies. Instead he invested in ventures including an investment firm and a car leasing company. Both companies failed.
Prosecution said the shortfall amounted to more than £200,000.
However, the magistrates felt their sentencing powers were insufficient and passed the case to the Old Bailey.
Financial irregularities at Denis Hilton first emerged after the company went into liquidation in 1998.