Former London Capital & Finance CEO sentenced after splashing hidden funds on pricey Italian getaway and hot tub
The former CEO of now collapsed London Capital & Finance was handed a suspended sentence today after he was found to have breached an asset freezing order, splashing hidden funds on a holiday, hotel stay and a hot tub.
The Serious Fraud Office froze Michael Thomson’s assets as part of its ongoing investigation into suspected fraud and money laundering linked to the 2019 collapse, which saw 11,000 investors lose £237m in a mini bond-scheme.
The SFO found that Thomson hid £95,000 after the order was imposed, partly made up of a £55,000 fraudulent insurance claim for repair works on a barn that wasn’t completed.
He then spent some of the hidden cash on a £5,000 holiday in Italy, a £3,900 horse saddle, a £1,170 hotel and spa stay in Torquay, and £5,495 on a hot tub, the SFO said.
As a consequence, he was handed a 10 month sentence, suspended for two years, at Southwark Crown Court today.
“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,” Lisa Osofsky, Director of the Serious Fraud Office, said.
“Over the past two years we have traced and seized every asset we have gone after, recovering over £140m for taxpayers,” she added.
The collapse of London Capital & Finance spawned a range of criticism across the City, particularly of the Financial Conduct Authority’s oversight of the outfit.
The FCA was at that time run by now Bank of England governor Andrew Bailey, who later apologised for the FCA’s failings.