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Former Formula One tycoon, Bernie Ecclestone, has admitted guilt in a fraud case where he failed to disclose over £400 million held in a Singapore trust to the Government, eventually agreeing to pay more than £652 million in taxes.
Judge Simon Bryan handed Ecclestone a 17-month suspended sentence, meaning he would only face incarceration if he committed another criminal offense during the following two years. The former racing magnate, now 92, confessed in court this morning while impeccably dressed in a dark three-piece suit and grey tie.
On July 7, 2015, Ecclestone neglected to declare a trust in Singapore with a bank account containing around $650 million, equivalent to approximately £400 million at that time. Southwark Crown Court was informed that Ecclestone has reached a civil settlement of £652,634,836 to settle the outstanding taxes owed to HMRC.
The charge stated that Ecclestone, who has three adult daughters named Deborah, Tamara, and Petra, along with a young son named Ace, “established only a single trust, that being one in favor of your daughters, and other than the trust established for your daughters, you were not the settlor nor beneficiary of any trust in or outside the UK.”
Before admitting guilt, Ecclestone was slated to go on trial in November on the single fraud charge. His defense barrister, Christine Montgomery KC, told Judge Mr. Justice Bryan during the sentencing that the defendant deeply regrets the circumstances leading to this criminal trial.
Previously, Ecclestone was cleared of bribery charges in August 2014 after paying a German criminal court £60 million. He had been accused of bribing a German banker to influence the sale of regional bank BayernLB’s 47.2 percent stake in F1 to a private equity firm, CVC Capital Partners, in 2006, who were the majority shareholders in F1 at the time. He was accused of offering a £27 million bribe.
Following this investigation, HMRC initiated a tax fraud inquiry into Ecclestone. According to Mr. Wright, there was a meeting between Ecclestone and HMRC officers in July 2015. Ecclestone expressed his desire to conclude investigations into his tax affairs, stating that he was tired of paying substantial fees for advice.
During the meeting, Ecclestone answered “no” when asked by HMRC officers if he had any connections to additional trusts “in or outside the UK.” Prosecutor Richard Wright, KC, revealed, “‘That answer was untrue or misleading. Mr. Ecclestone knew his answer may have been untrue or misleading. As of July 7, 2015, Mr. Ecclestone did not know the truth of the position, so was not able to give an answer to the question. Mr. Ecclestone was not entirely clear on how ownership of the accounts in question was structured. He, therefore, did not know whether it was liable for tax, interest, or penalties in relation to amounts passing through the accounts. Mr. Ecclestone recognizes it was wrong to answer the questions he did because it ran the risk that HMRC would not continue to investigate his affairs. He now accepts that some tax is due in relation to these matters.”
The charge accused Ecclestone of “dishonestly” making a false representation to HMRC officers, which he knew was or might have been untrue or misleading. This charge was approved by the Crown Prosecution Service (CPS) in July the previous year following an intricate and international investigation by HMRC.
Chief Crown Prosecutor Andrew Penhale commented at the time, saying, “The CPS has reviewed a file of evidence from HMRC and has authorized a charge against Bernard Ecclestone of fraud by false representation in respect of his failure to declare to HMRC the existence of assets held overseas believed to be worth in excess of £400 million.”
