Two businessmen, accused of running a £250 million-plus international ‘Ponzi’ fraud from a former RAF base, were finally cleared of all charges today (Monday) after two trials totalling nearly fifteen months and a legal bill of over £20m.
Jared Bentley Brook, 40, of Drywood Avenue, Worseley, Manchester, originally from Preesall, Poulton-Le-Fylde, and Lincoln Julian Fraser, 39, of Orford Hall, Brookenby, Binbrook, Market Rasen, Lincolnshire, ran Imperial Consolidated, based at RAF Binbrook, Market Rasen, which collapsed in June 2002, owing £150m.
At its peak Imperial Consolidated had ten overseas offices, 350 employees and 3,000 investor clients from all over the world.
The business grew from humble beginnings following a failed venture by the defendants to successfully run the Midland Hotel, Morecambe, Lancashire, resulting in their disqualification as company directors and a string of unhappy creditors.
Both men were found not guilty by a Blackfriars Crown Court jury of conspiracy to defraud investors in investment schemes between January 1, 1998 and June 30, 2002.
Today further not guilty verdicts were entered by trial Judge Mrs Justice Gloster on a similar joint-count of conspiracy to defraud and one count each of fraudulent trading, knowing it was for a fraudulent purpose between May 1, 2000 and June 30, 2002 after the jury remained deadlocked.
The court was told £253.9 million was invested in Imperial Consolidated over four-and-a-half years and over £150 million has vanished, despite investors being convinced by the pair their savings were safe.
The criminal investigation into the defendants began in Summer 2002 and the first trial ended without any verdicts regarding the two defendants in 2008.
The jury was told neither Fraser (pic.bottom) nor Brook (pic.top) who lived in Beacon Lodge, near Louth during the fraud, have any accountancy or formal financial qualifications.
Prosecutor Mr. Tim Barnes QC, representing the Serious Fraud Office announced: “It is not in the public interest to proceed with a second retrial in this case.
“That was a decision take at the highest level after consultation and consideration of all the issues. It was not an easy decision for the Director to make.”
The court will return the defendants passports along with two £50,000 securities – one lodged by Brook’s mother – to ensure the defendants appeared.
A third defendant, Imperial Consolidated director William Godley, who pleaded guilty to his role in a conspiracy to defraud investors will be sentenced on August 2 when the Judge will rule on whether Fraser should receive £47,200 and Brook £62,000 to cover accommodation, travel and food.
Afterwards Fraser’s solicitor Mr. Aziz Rahman said: “Mr Fraser has suffered eight years of investigation and a total of 15 months on trial. This has been a great strain on him and his family.
“Today’s announcement, the second trial’s verdict and the outcome of the first trial restore Mr Fraser’s reputation, but this lengthy saga calls into question the SFO’s decisions regarding whether a trial and then a retrial were justified.
“Mr Fraser is now receiving further advice from us and considering his options.
“There is no doubt that a third trial could never have been in the public interest.”
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