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Former LCF Chief and Wife Sentenced Over Asset Sales in Fraud Probe
Sentencing and Details of Asset Sales Breach
Background of the Case
LONDON, May 21 (Reuters) – The former CEO of collapsed British investment firm London Capital & Finance and his wife have received six-month sentences for selling saddles, a hot tub and other luxury items in breach of a restraint order, the Serious Fraud Office said on Thursday.
Impact on Investors
The collapse in 2019 of LCF, which promised high interest rates on “mini-bonds” before its failure triggered one of Britain’s biggest retail investment scandals, cost around 11,600 investors more than £237 million ($318 million).
Judicial Response
A London judge called the sales by Michael Thomson and his wife Debbie, whose sentence was suspended for two years, “an attack on the administration of justice.”
Legal Proceedings and Breaches
Response from Legal Representatives
Lawyers for Thomson did not immediately respond to a request for comment.
Details of the Breaches
Previous and Current Offenses
Thomson, who had already been serving a suspended sentence for a previous breach, admitted to recklessly breaching an SFO restraint order twice and Debbie four times by receiving a £2,000 holiday refund and selling items with a combined value of almost £5,800, the SFO said.
Ongoing Investigation
The assets are subject to restraint proceedings because of the continuing SFO fraud and money-laundering investigation.
Additional Information
Exchange Rate Reference
($1 = 0.7462 pounds)
(Reporting by Kirstin Ridley)