Disgraced Sutton Coldfield financier Gary Hexley has been banned from directorships for nine years for misusing more than £500,000 handed over for investment by the elderly.

Hexley’s wife Michelle was also given a two-and-a-half year ban following an investigation by the Insolvency Service.

A statement from the Insolvency Service said: “The husband and wife team, who were directors of Greenfield International Limited, gave undertakings to the Secretary of State for Business, Innovation and Skills on 14 November 2012.

“Mr Hexley, 50, was banned for nine years while Mrs Hexley, 46, received a two-and-a-half year ban. The disqualification restricts them from in any way managing or controlling limited companies for the duration of their bans.

“Mr Hexley had previously been made bankrupt in May 2010 and was also banned by the Financial Services Authority (FSA) in June 2011 from carrying out any function in respect of any activity regulated by the FSA.

“The investigation by the Insolvency Service found that Mr Hexley accepted at least £584,764 for investment, mainly from retired workers, who believed that their money would be invested in properties for rental and eventual sale.

“Instead of investing their money, Mr Hexley paid more than £500,000 of it to another company he and his wife controlled, which was building a new housing development in central Birmingham.

“This latter company collapsed and went into administration in September 2009 with losses of more than £1.3 million. Greenfield International Limited went into liquidation in October 2010 with losses of more than £2 million. In addition to the investment creditors, Mr Hexley had also taken deposits of almost £1.2 million for ‘off plan’ properties in a development in Wolverhampton which has not been built.

“These monies were also loaned to the other company, Intellectual Property (UK) Limited, which was operated by himself and his wife.”

Robert Clarke, head of Company Investigations Birmingham, said: “The undertakings signed by Gary Hexley and Michelle Hexley send a clear message to other company directors that if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by the Insolvency Service and as a result removed from the business environment.”

Last month Hexley and business partner John Cooper appeared in court charged with offences contrary to the Financial Services and Markets Act 2000. Hexley is charged with carrying on a regulated activity without being an authorised or exempt person and five counts of dishonestly concealing a material fact.

Cooper, 56, is charged with three offences of dishonestly concealing a material fact. Both men appeared before Birmingham Magistrates Court and were remanded on conditional bail until December 21.

The collapse of Greenfield International left a total of 237 creditors with total debts of £2,077,426. Only a handful of investors have been compensated.