A Plymouth accountant has admitted cheating investors, including former England and Scotland football stars, of £4m in a foreign exchange spread betting scheme.

Simon Grinter pleaded guilty to a charge of fraudulent trading on the fourth day of a trial at Plymouth Crown Court and is now facing a jail sentence. He had previously worked as an accountant in the city, but at the time of the offences was a foreign currency trader.

The court heard that Grinter spent four years lying to clients by saying he was making profits when in fact he was making huge losses. During that period investors, who included footballers Chris Sutton and Billy McKinlay, handed over around £7.8m, of which Grinter lost about £4m.

The court heard Grinter would place bets on whether currencies would go up or down and take 20% commission on any profits made. Investors told the court that Grinter sent monthly emails saying they were making profits of between 3% and 7%, and many were encouraged to put more money in and others invited family or friends to invest.

Those that were able to withdraw their 'profits' were simply being handed someone else's money, the court was told. Former England international Chris Sutton, who played for Blackburn and Chelsea, put £50,000 into the scheme and has not had any money back.

The jury was told Grinter spent £526,000 on himself through credit cards and other personal expenses over the 44 months at a rate of about £12,000 a month. Investigators have found no other source for the money.

Following the guilty plea related to fraudulent trading, Grinter's sentence was adjourned but his barrister said that custody was inevitable. The judge in case found Grinter not guilty on 13 charges of fraud.

The court heard that £1.7m in Grinter's trading account had been frozen, and police and financial investigators will now begin the process of returning the money to the investors who had lost out, but said this would be difficult as client monies had not been kept separately.