Former Formula 1 boss, Bernie Ecclestone, who is set to celebrate his 93rd birthday later this month, has been given a suspended jail sentence of 17 months following his guilty plea to a single count of fraud at Southwark Crown Court.
The charge stemmed from an investigation by HM Revenue and Customs (HMRC) into his finances, which revealed that he had failed to declare a trust in Singapore with a bank account containing around $650m, worth about £400m at the time.
During a court hearing, it was alleged that he made untrue or misleading representations to HMRC at a July 2015 meeting, when he said he had “established only a single trust” in favour of his daughters Deborah, Tamara and Petra.
Prosecutors claimed that Ecclestone answered “no” when asked by HMRC officers whether he had any links to further trusts “in or outside the UK”.
The court heard that his answer was untrue or misleading and that he knew it may have been so.
The sentencing judge, Mr Justice Bryan, acknowledged that Ecclestone’s offence was so serious that neither a fine nor a community order would be appropriate.
However, he also took into account several mitigating factors, such as Ecclestone’s health, age, and the fact that he had no previous criminal convictions.
He also noted that Ecclestone had reached a civil settlement with HMRC to pay £652.6m covering 18 tax years.
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Ecclestone appeared at the hearing in a dark grey suit, accompanied by his third wife, Fabiana Flosi.
His defence barrister, Christine Montgomery KC, told the court that the defendant “bitterly regrets the events that led to this criminal trial”.
Clare Montgomery KC, defending, said Ecclestone “bitterly regrets” the events that led to him being prosecuted, adding:
“It was not Mr Ecclestone’s intention to avoid paying tax. He has always been willing to pay the tax that was due.”
She said his answer was an “impulsive lapse of judgement” and that he was now in “frail health” with the proceedings causing “immense stress to him and those who love him”.
It is important to note that Ecclestone’s personal financial situation is separate from his former role in Formula 1.
He sold off his ownership in the sport in 1999, and notably to CVC Capital Partners in 2006 when he no longer became the majority shareholder.
He retained the status as chief executive until 2017 when the current owners of F1, Liberty Media, came in.
Chase Carey sacked Bernie Ecclestone face-to-face from that job and Ecclestone subsequently sold off virtually all of his remaining shares.
His chairman-emeritus role has lapsed for a couple of years now, which was a kind of ceremonial title, so he has no day-to-day involvement in F1.
