Former boss of London Capital & Finance faces jail

THE former chief executive of collapsed mini-bond provider London Capital & Finance faces prison after admitting he concealed £95,000 from investigators.

Michael Thomson hid the funds from the Serious Fraud Office (SFO), which has been investigating the collapse of the investment company.

London Capital & Finance, which was based in Kent, raised about £236m from 11,605 bondholders who were promised returns of up to 8pc. The company collapsed in January 2019.

Mr Thomson admitted contempt of court yesterday but claimed the failure to declare the money was unintentional. A restraint order on his assets has been in place since March 2019. Weeks before, he bought a £2m luxury home, which has increased in value by £900,000, The Times reported.

The converted barn near Lewes, East Sussex, has a 52ft drawing room, six bedrooms, a heated swimming pool and seven acres of gardens.

Mr Thomson said he failed to declare a £55,000 stamp duty refund received from the taxman and a £40,000 insurance payout for damage at another barn, which he rents.

The payments went to the bank accounts of his wife, Debbie, which were not restrained. Mr Thomson, who is receiving legal aid, said he should be spared jail as he claims to be his family’s sole provider, although he is reportedly unemployed.

Genevieve Reed, in mitigation for Thomson, said there were mental health issues to justify him not going to jail. Judge Deborah Taylor said to Mr Thomson: “It is very much in your

interests to provide the court with more information if you wish the court to consider a non-custodial outcome to this case”.

An SFO spokesman said: “Where assets are restrained for potential compensation and confiscation, the SFO will not hesitate to take action against those who have misused them.”

A hearing in September is expected to determine his sentence for contempt of court.

The maximum punishment is typically two years but mitigating factors can influence a decision.