A FORMER company director whose playboy lifestyle was fuelled by an £80m property fraud has been ordered to serve a further six years in jail.

John Potts, who was chairman of Gateshead-based Practical Property Portfolio (PPP), conned many investors out of their life savings and spent it on designer clothing, racehorses and fast cars - including the 1960's Jaguar from TV series, Inspector Morse.

The 65-year-old was jailed for five years at Newcastle Crown Court in 2009 after finally admitting a charge of conspiracy to defraud between January 2001 and March 2003, when PPP closed down.

In September 2010, a £1.5m confiscation order was made against him, requiring him to pay the sum within two years or face an extra six years in prison.

Two magistrates sitting at Teesside Magistrates' Court today (Wednesday, November 26) activated the sentence after hearing Potts, who had lived at Silksworth Hall Drive, Sunderland, had only repaid £351,794.

Elizabeth Baker, the Serious Fraud Office's Joint Head of the Proceeds of Crime Division, said: "This was a pernicious fraud, with large amounts of money paid over in good faith by investors.

"As a result John Potts enjoyed an extravagant lifestyle, using other people's money to pay for home improvements and purchase race horses and expensive cars."

During the 2009 case, Judge Guy Whitburn QC described it as a "brazen fraud" and said Potts used the money to carry out "profligacy on a heroic scale".

He said Potts dominated his four fellow directors and drove the scheme forward and, while all benefitted, he did so the most.

The court heard investors put money into Potts' company, which bought houses and flats - many in run-down areas - for refurbishment.

But many were to discover the properties, across the North-East, Yorkshire and Lancashire, had not been renovated or tenanted and were sometimes derelict or burnt-out.

Police believe around 1,750 people invested in the scheme, many of whom lost significant sums or their life savings.

Judge Whitburn said Potts used the money to fund a lavish lifestyle, which included spending £250,000 indulging his passion for horse racing. He also bought the red 1960's Jaguar used in the Inspector Morse TV series for £53,000, spent £125,000 on Savile Row clothing and lavished another £500,000 on a fleet of cars for employees as well as an art collection, jewellery, shotguns antiques and a model railway set.

Ms Baker said: "The Serious Fraud Office is committed to ensuring criminals surrender the benefits of their crimes."

The default sentence activated today (Wednesday, November 26) will be served unless the remaining amount of £1,365,427 is paid along with accrued interest, which is increasing by £251.66 per day.