The Serious Fraud Office (SFO) has secured a 10-month sentence, suspended for two years, for former London Capital & Finance (LCF) chief executive Michael Thomson, following his breaching of a restraint order imposed on his bank account.
The SFO had frozen Thomson’s assets as part of its investigation into suspected fraud and money laundering at LCF, where 11,000 investors lost in excess of £237m ($296m, €273m) between 2014 and 2019 in a mini-bond scheme.
The fraud office uncovered that Thomson “hid £95,000 he received after the order was imposed”.
The SFO said: “This included £55,000 from a tax rebate and a fraudulent insurance claim worth £40,000 for repair work to a barn that was never completed. The monies were paid into an account owned by Mr Thomson’s wife, in an attempt to hide the money from the SFO.”
SFO investigators also allegedly found Thomson spent some of this money to further conceal and hamper its recovery: buying a £5,000 holiday in Italy, a £3,900 horse saddle, £1,170 on a hotel and spa stay in Torquay, and £5,495 on a hot tub.
Lisa Osofsky, director of the Serious Fraud Office, said: “Today’s result makes clear: company executives are not above the law. When they break it, we have the means and the resolve to go after their money, no matter where they hide it. Over the past two years we have traced and seized every asset we have gone after, recovering over £140m for taxpayers.”
History
LCF issued “misleading” mini-bonds and Isas on a non-advised basis, promising 8% returns to clients.
The Financial Conduct Authority (FCA) came under fire for its handling of the LCF scandal – but the UK regulator refused to accept two of the main issues highlighted in the Complaints Commissioner’s report.
