Michael Thomson, the former chief executive of 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 items including horse saddles and a hot tub. Judge Milne described his actions as an attack on the administration of justice.
Thomson’s wife, Debbie, also admitted to the offences and received a six-month sentence, suspended for two years. The couple had previously admitted to recklessly breaching a Serious Fraud Office (SFO) restraint order by receiving a £2,000 holiday refund and selling items worth nearly £5,800.
At the time of these offences, Thomson was already serving a suspended sentence for an earlier breach, in which he 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.
LC&F collapsed in 2019 after selling £236 million of mini-bonds promising returns of up to 8% a year. However, much of the money was used for speculative property developments, oil exploration in the Faroe Islands, and even a helicopter for a company controlled by LC&F. A further £58 million was paid in commission to a marketing company that promoted the bonds.
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 out over £173 million, including £115 million from a government top-up. To date, the Thomsons’ actions have resulted in the dissipation of more than £100,000 in assets.
Paul Napper, the SFO’s head of proceeds of crime, said: “We continue to advance our inquiry into LC&F on behalf of the thousands of investors who lost everything through its abrupt collapse.”
