Former LC&F boss jailed for selling hot tub in contempt of court

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 characterized Thomson’s actions as “an attack on the administration of justice.” Thomson’s wife, Debbie, also admitted to the offenses, but her six-month sentence was suspended for two years.

The couple 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.

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 SFO said.

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 that promised investors returns of up to 8% annually.

However, little of the money went into safe interest-bearing investments. Instead, it funded speculative property developments, oil exploration in the Faroe Islands, and even a helicopter purchased for a company controlled by LC&F.

An additional £58 million was paid in commission to a Brighton-based marketing company that promoted the bonds.

In 2021, the government announced a one-off compensation scheme for victims to supplement the existing Financial Services Compensation Scheme (FSCS). As of February 2024, the FSCS had paid out over £173 million, with £58 million from industry funding and £115 million from a government top-up.

SFO investigators said that the Thomsons’ actions have resulted in the dissipation of over £100,000 in assets. 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.”