The former chief executive of the collapsed investment firm London Capital & Finance (LC&F) has been sentenced to six months in prison for contempt of court after admitting to breaching a restraining order by selling luxury goods, including horse saddles and a hot tub.
Background of the Case
Michael Thomson, alongside his wife Debbie, pleaded guilty to recklessly violating a Serious Fraud Office (SFO) restraint order. The violations included receiving a £2,000 holiday refund and selling items worth nearly £5,800. Judge Milne described Thomson's actions as an attack on the administration of justice.
Previous Offences
At the time of these offences, Thomson was already serving a suspended sentence for a prior breach, having transferred £95,000 to his wife to conceal funds from investigators. The assets are subject to restraint proceedings as part of an ongoing SFO investigation into suspected fraud and money laundering at LC&F.
The Collapse of LC&F
LC&F collapsed in 2019 after selling £236 million of mini-bonds promising returns of up to 8% annually. However, much of the money was diverted into speculative ventures, including property developments, oil exploration in the Faroe Islands, and a helicopter purchased for a company controlled by LC&F. Additionally, £58 million was paid in commission to a Brighton-based marketing firm.
Compensation for Victims
In 2021, the government announced a compensation scheme for victims, supplementing the Financial Services Compensation Scheme (FSCS). As of February 2024, the FSCS had paid over £173 million, with £58 million from industry funding and £115 million from the government top-up.
Paul Napper, the SFO’s head of proceeds of crime, stated: “We continue to advance our inquiry into LC&F on behalf of the thousands of investors who lost everything through its abrupt collapse.”
