View more on these topics

Ex-sub-prime mortgage boss jailed over £130k tax fraud

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg

Former Clayton Euro Risk and Edeus chief executive Michael Bolton has been jailed for two years for VAT evasion of £130,000.

Bolton did not appear for sentencing or his earlier trial, and the court heard he may have fled the country.

Bolton was found guilty of one count of fraudulent evasion of VAT and was sentenced in his absence. Passing sentence at Exeter Crown Court today, Judge Graham Cottle said Bolton charged firms for £900,000 of banking and management strategy services between 1 May 2009 and 30 November 2013.

Cottle said the VAT payable on the figure was £130,000.

Cottle said: “You did not account for that VAT at all to the HMRC.  You used, in connection with your billing, VAT numbers belonging to two organisations, both of whom you were linked to.  You were not, during the period of the offending, registered for VAT in your own name.”

Cottle said Bolton only registered for VAT when he knew he was being investigated by HMRC.

He said: “You used bogus VAT numbers as if they were your own. The documents you used were therefore forged documents.

“The explanation you provided was that you had accounted for all the VAT you were owed in cash to a man called Paulo who lived in Switzerland. That was a completely bogus explanation, I find.”

The judge said Paulo had never existed.

He said: “You are effectively on the run. Your exact whereabouts is not known, though it is believed you may be in Spain.

“You are quite clearly a fraudster, who over a sustained period of time, with an element of sophistication, has defrauded the Revenue out of approximately £130,000.”

Bolton’s court cases began on 2 November last year with plea and case management hearings at Bristol Crown Court.

There was a second plea and case management hearing on 30 November, and Bolton’s trial began at Bristol Crown Court on the morning of 1 February. The trial was adjourned until 11.30am, and Bristol Crown Court issued a bench warrant for Bolton’s arrest on 1 February 1 at 11.53am. A jury unanimously found Bolton guilty on the afternoon of 2 February.

Bolton is a well-know figure in the mortgage world, having spent five years as HBOS head of specialist lending before leaving to set up defunct sub-prime lender Edeus in 2006.

He went on to launch equity release support services firm Charterhouse Retirement Solutions in 2009 before becoming sales and marketing director of Clayton in Europe in 2010 and then co-chief executive of the due diligence firm in 2013. He left Clayton in September 2014 and has since been advising lenders looking to come into the UK market.

Recommended

Justice-Fine-Ban-Court-Gavel-Judge-700x450.jpg
1

High profile tax adviser jailed after £6m tax evasion

A high-profile tax adviser and accountant has been jailed for five years for evading more than £6m in tax. Denis Christopher Carter Lunn ran Sussex-based firm Christopher Lunn & Co, whose clients included actress Sadie Frost, actor Sean Pertwee and news presenter Fiona Bruce. HM Revenue and Customs first took action in 2010, when it […]

1

Financial adviser jailed for 6 years over film scheme tax fraud

A former financial adviser has been jailed for six years for his part in a film scheme tax fraud. Neil Williams-Denton devised tax avoidance schemes based on tax breaks given to investment in the film industry, reports City AM. He attempted to defraud HMRC of £2.2m. Williams-Denton, a former Greystone Financial Services director, was jailed […]

FAMR – a familiar response

Pension specialist Fiona Tait takes a look at the Financial Advice Market Review and assesses the three areas where it suggests improvements can be made With significant budget changes ruled out (for a while anyway), the pension community briefly turned its attention to the FCA’s final report on its Financial Advice Market Review (FAMR), hoping […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I thought he was sentence to prison as he hasn’t been sent to jail unless it is a virtual one as they can’t find him!

  2. If he wanted a mortgage when he comes back he’s probably now in non-prime territory which is rather ironic!

Leave a comment