An agent whose business “fell off a cliff” during the financial crash and borrowed nearly £160,000 from clients and friends to try and keep his business afloat has been spared jail.

The agent had promised high rates of return, but only £9,000 of the money was repaid.

Russell Baker, 59, who ran Ashby’s Estate Agents (Devon) in Bovey Tracey, “robbed Peter to pay Paul”, Exeter Crown Court heard. He was sentenced to 20 months in prison, suspended for two years, and ordered to complete 160 hours of unpaid community service.

Baker now works for a catering company while living with his wife in a mobile home in a pub car park, says the report in the local paper

Baker admitted nine counts of fraud.

Among his victims were a couple whom he duped into loaning him £22,500 for a deposit on a house.

Baker was sentenced to 20 months in jail, suspended for two years, with even the Recorder who handed down the sentence admitting it was lenient.

Recorder Noel Casey said the disgraced estate agent had shown remorse and had tried to pay back his victims.

The offences took place in 2013 and 2014.

The court was told Baker’s business had “dropped off a cliff” after the financial crisis in 2008. He faced a cash flow problem and began asking people for loans.

Prosecutor Tom Bradnock said there had been seven victims.

He said in January 2013 Baker borrowed £15,000 from a former client. The money was paid into a business account belonging to Baker. He transferred £5,000 of that cash into his personal account on the same day.

Despite promising to pay it back in one month ‘there was never a real prospect’ of him doing so, said Mr Bradnock.

“By January 2013 he was already heavily in debt,” he added.

“Throughout he was in fact robbing Peter to pay Paul.”

Over the course of the next 20 months, Baker borrowed sums of between £2,000 and £25,000 from friends and neighbours, always promising to pay it back within a specified period of time.

In total he borrowed £157,250 and repaid less than £9,000.

Among his victims were a property-hunting couple who went to Ashby’s Estate Agents to buy a house. The purchase was agreed but Baker told the buyers he needed a 10% deposit to secure the sale.

“This was wholly untrue,” said the prosecutor.

They transferred £22,500 into his personal account, £6,000 of which was repaid after his arrest.

Baker initially told police he had not committed any fraud and a trial date was set. He eventually admitted his guilt to nine offences.

Joss Ticehurst, mitigating, said: “This was not a man hell-bent on stealing and defrauding people left right and centre. He had for many years been a successful businessman who acted with integrity.

“The frauds arise out of the economic circumstances. There was a significant downturn in the housing market in 2008 and his business dropped off a cliff.”

Baker kept the scale of his business failings a secret from his wife.

“His world was collapsing around him,” said Mr Ticehurst.

He said Baker had the option of declaring himself bankrupt but did not because he wanted to have assets to repay his victims.

“He’s wiped himself out financially,” said his barrister.

“He’s ashamed he led people a merry dance and ashamed he stands in the criminal court,” he added. “Not for a moment did he think he would be a man to do that.”

Recorder Casey said the frauds were not sophisticated. He said a pre-sentence report showed Baker was sorry for what he done.

He said Baker deserved to go to prison but he was willing to be lenient.

He told him: “You have had a somewhat favourable outcome today.”

According to  BBC report, one client, Wendy Spiegel, lent Baker £25,000 to buy his partner out. She has yet to receive any money back.

She told the BBC: “I really feel stupid. I really feel that I was gullible, and good-heartedly said I’d lend him the money. In retrospect it was a very stupid thing to have done.”