Former executive Michael Thomson receives a six-month prison sentence in London after admitting breaches of a Serious Fraud Office restraint order tied to the ongoing London Capital & Finance investigation. The case has become one of the most closely watched examples of an LC&F asset restraint breach connected to the wider fraud investigation.
Judge sentences thomson over asset sales
Judge Milne sentenced Thomson to six months in prison after the former investment executive admitted selling luxury items, including horse saddles and a hot tub, while subject to a Serious Fraud Office restraint order.
Thomson’s wife, Debbie Thomson, also admitted the offences. The court handed her a six-month sentence, suspended for two years.
The couple acknowledged receiving a £2,000 holiday refund and selling items valued at nearly £5,800 while restraint measures remained in place. Prosecutors argued the LC&F asset restraint breach directly reduced the value of assets preserved during the investigation process.
SFO investigation into LC&F continues
The Serious Fraud Office said the restrained assets remain connected to its ongoing investigation into suspected fraud and money laundering involving London Capital & Finance.
Investigators previously said Thomson transferred £95,000 to his wife while already serving a suspended sentence linked to an earlier restraint-order breach.
Authorities said the couple’s actions led to the reduction of more than £100,000 in restrained assets connected to the investigation. Officials stated that the latest LC&F asset restraint breach raised further concerns about compliance with court-imposed financial restrictions.
Collapse triggered investor compensation scheme
LC&F collapsed in 2019 after selling £236 million in mini-bonds that offered investors returns of up to 8% annually. Investigators said funds supported speculative projects, including property developments, oil exploration in the Faroe Islands and a helicopter purchase linked to an LC&F-controlled company.
Officials also said a Brighton-based marketing company received £58 million in commission for promoting the bonds.
In 2021, the British government announced a compensation package for investors alongside payments through the Financial Services Compensation Scheme. By February 2024, the FSCS had distributed more than £173 million to affected investors, including £115 million from government support.
“The restraint order exists to preserve assets during the investigation process,” the Serious Fraud Office said in statements presented before the court.
Judge Milne described the breaches as conduct that undermined the administration of justice during the sentencing hearing, with the court emphasizing the seriousness of the repeated LC&F asset restraint breach violations.
