Bernie Ecclestone: Former F1 boss given 17-month suspended prison sentence after pleading guilty to fraud

Ecclestone pleaded guilty on Thursday to fraud for failing to declare to the government £400 million held in a trust in Singapore; Ecclestone reached a civil settlement with HMRC to pay £652.6 million, covering 18 tax years; Sentenced to 17 months in prison, suspended for two years

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Former Formula One boss Bernie Ecclestone leaves Southwark Crown Court after being sentenced to 17 months in prison, suspended for two years, after pleading guilty to fraud.

Former Formula 1 boss Bernie Ecclestone has been sentenced at Southwark Crown Court to 17 months in prison, suspended for two years, after pleading guilty to fraud.

Ecclestone, who turns 93 later this month, was due to stand trial at Southwark Crown Court in November after denying the charge.

The billionaire appeared in the same court on Thursday, dressed in a dark gray suit, supported by his third wife, Fabiana Flosi, to plead guilty to a single count of fraud on July 7, 2015.

The court heard that Ecclestone reached a civil settlement with HM Revenue and Customs (HMRC) to pay £652.6 million on October 9 covering 18 tax years.

Ecclestone was sentenced to 17 months in prison, suspended for two years.

His lawyer, Christine Montgomery KC, told the sentencing judge, Justice Bryan, that the defendant “bitterly regrets the events leading up to this criminal trial.”

Sentencing Ecclestone, who heard the judge’s remarks from the dock, Judge Bryan said: “Your offending is so serious that neither a fine nor a community order would be appropriate.

“It is rightly recognized that the detention threshold has been exceeded.”

However, he said he took into consideration a number of mitigating factors, including Ecclestone’s health and age, and that he had no previous criminal convictions.

Bernie Ecclestone arrives at Southwark Crown Court on Thursday

He was charged following an investigation by HMRC into his finances.

The court has previously heard that he failed to declare a trust in Singapore with a bank account containing around $650 million, worth around £400 million at the time.

Prosecutors said Ecclestone made false or misleading statements to HMRC at a meeting in July 2015, when he said he had “established a single trust” in favor of his daughters Deborah, Tamara and Petra.

The court heard Ecclestone replied “no” when asked by HMRC officers whether he had any links to other trusts “in or outside the UK”.

Prosecutor Richard Wright KC said: “This response was false or misleading. Mr Ecclestone knew his answer could be false or misleading.

“As of July 7, 2015, Mr Ecclestone did not know the truth about this situation and was therefore unable to answer the question.

“Mr Ecclestone was not entirely clear on how ownership of the accounts in question was structured.

“He therefore did not know whether she was liable for taxes, interest or penalties in relation to the sums passing through the accounts.

“Mr Ecclestone acknowledges that it was a mistake to answer the questions he asked because it risked HMRC not continuing to investigate his affairs.

“He now accepts that some tax is due on these matters.”

The court heard Ecclestone saved around £100,000 in costs by ending the investigation, but Mr Wright said: “It could be argued there were no savings because the discovery lying resulted in significant legal expenses.”

Clare Montgomery KC, defending, said Ecclestone “bitterly regrets” the events which led to his prosecution, adding: “It was not Mr Ecclestone’s intention to avoid paying tax.” He was always ready to pay the tax that was due.

She said his response was an “impulsive error of judgment” and that he was now in “fragile health”, with the procedure causing “immense stress for him and those who love him”.

Sky Sports News’ Craig Slater reports:

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Sky Sports News’ Craig Slater explains what Bernie Ecclestone’s 17-month suspended sentence for fraud means for his legacy.

“This all relates to Bernie Ecclestone’s personal financial situation, so there is no connection to Formula 1 as a sport on this matter.

“He hasn’t had a formal role within F1 for a few years now.

“In fact, he started selling his ownership in the sport as early as 1999. He was previously the commercial rights holder, in fact the owner of Formula 1, but little by little he sold part of it over the years. Notably to CVC Capital Partners in 2006, when he no longer became the majority shareholder, but retained the status of managing director.

“This was lost when F1’s current owners, Liberty Media, arrived in 2017. Chase Carey sacked Bernie Ecclestone face to face from that position and Ecclestone then sold virtually all of his remaining shares.

“He then took on the role of chairman emeritus, which was a sort of ceremonial title. It’s been a few years now, so he’s no longer involved in day-to-day F1.”