Tycoon Bernie Ecclestone tried to dodge a fraud trial by claiming the stress of a full criminal trial would kill him, it can now be revealed.
The 92-year-old former Formula One boss appeared in the dock at Southwark crown court on Thursday to plead guilty to hiding a Singapore trust containing around £400 million from an HMRC investigation.
He had been under investigation for tax fraud when he lied about the extent of his wealth, at a meeting with investigators in 2015. A criminal charge of fraud by false representation was then brought against him last year.
In pre-trial hearings, that can be reported today for the first time, Ecclestone’s lawyers argued his age and health conditions meant he should not be put on trial.
Mr Justice Bryan heard evidence from a top cardiologist about Ecclestone’s health, while his barrister Clare Montgomery KC argued the tycoon would face a 60 per cent “risk of death” if put on trial for six weeks.
“The defence submission is that the stress of the trial process will kill Mr Ecclestone”, said the judge, in his ruling on a bid to stop the trial.
“(They say) the stress caused by the nature and consequences of legal proceedings that gives rise to the significantly increased risk of Mr Ecclestone suffering a fatal cardiovascular event, and they submit that no effective measures are available to mitigate this risk.”
A trial was set for mid-November with Ecclestone due to give evidence as part of his defence case.
In making his decision, the judge pointed out Ecclestone had made high-profile appearances at several pre-trial hearings when he had not been required or could have followed proceedings from home via videolink.
“On each such occasion he attended of his own choice, and by the front entrance to the Court building and passed representatives of the Press as he stepped out of a white Range Rover”, he said.
The judge said special measures could have been taken to help Ecclestone through the trial process, including shorter court days.
Lawyers for Ecclestone said he suffered chest pains when news of his criminal prosecution first broke.
But the judge highlighted Ecclestone’s decades of experience in the high-octane world of Formula One as evidence of his character and ability to handle pressured situations.
“Mr Ecclestone has not only lived through, but seemingly thrived, on the pressures of the cut and thrust of Formula One, and the associated contractual negotiations, agreements and disputes”, he said.
“No one was suggesting before me that Mr Ecclestone was anything other than someone who thrived on the inherent pressures of his role in Formula One. He is a man who thrives on pressure which for most would cause stress.”
The judge concluded: “There is no real and immediate threat to the life of Mr Ecclestone by reason of the trial process, but if there is, then, having regard to such measures, the State has done all that could reasonably be expected of it to avoid a real and imminent threat to the life of Mr Ecclestone.”
At court on Thursday, Ecclestone pleaded guilty to fraud by false representation, and was sentenced to 17 months in prison suspended for two years.
The businessman was allowed to sit in the well of the court with his lawyers for most of the hearing, but was ordered into the dock when the judge finally passed sentence.
The case centred on a meeting in 2015 when he was under investigation over suspicions of tax fraud. He was asked whether there were any further trusts to declare and replied ‘no’, failing to disclose a Singapore trust containing around £400m.
The court heard Ecclestone has now agreed to pay HMRC a £652 million settlement to bring the investigations into his tax affairs to a close.
“Bernie Ecclestone has had ample time and numerous opportunities to take responsibility and be honest with HMRC about his tax affairs”, said Richard Las CBE, Chief Investigation Officer and Director Fraud Investigation Service at HMRC.
“Instead of taking these opportunities he lied to HMRC and as a result we opened a criminalinvestigation.
“This investigation has involved enquiries around the world and culminated with Bernie Ecclestone’s guilty plea to fraud. He now has a criminal record and has paid £652 million relating to his wider tax affairs.
“This conviction demonstrates no-one is above the law and HMRC will work tirelessly to ensure the tax system is fair to all and pays for our vital public services.”
