Former Rangers adviser charged over film scheme tax fraud

[ian1964 10,591]

Richard Hughes previously held shares of Glasgow Rangers Football Club and was the sole broker in the £560m flotation of online retailer Boohoo.com in 2014

 

A CORPORATE FINANCIER who previously held shares of Glasgow Rangers Football Club has been charged with tax fraud by the CPS over a £134m film investment scheme.

 

Richard Hughes co-founded Zeus Capital, the finance company which was at the heart of the Rangers buyout, and was the sole broker in the £560m flotation of online retailer Boohoo.com in 2014.

 

Hughes left his role as director of Zeus Capital in 2015 but still has a majority stake in the firm. There is nothing to indicate that any of the companies connected with Zeus Capital are involved in the scheme.

 

In November 2012, it emerged that Hughes was being investigated by HM Revenue & Customs over a £134m film investment scheme that was orchestrated by Zeus Partners, a seperate firm that Hughes set up in 2006.

 

When the investigation was announced, a spokesperson for Zeus Partners said that it "provided a number of high-risk investment opportunities backing highly successful entrepreneurs with a proven track record", adding that it was co-operating fully with HMRC in its investigation.

 

The scheme gave the Zeus Partners' 165 investors the opportunity to buy content from American motion picture firm Seven Arts Entertainment, a story which was first revealed by The Times.

 

If the films were successful at the box office, investors would double their money. If the film tanked however, investors could write off the cost against their other income and claim tax relief. For example, an investor who spent £160,000 could then borrow a further £840,000 and claim back on the total £1m.

 

Hughes and ten others have been charged by the CPS with "conspiracy to cheat" the revenue. They have been summonsed to appear at Birmingham Magistrates on 23 February.

 

Hughes denies the charges put against him.

 

http://m.accountancyage.com/aa/news/2440891/former-rangers-adviser-charged-over-film-scheme-tax-fraud

[forlanssister 3,084]

There was an article in The Times about that earlier this week.

 

He should have been done for usury for his "loan" to RIFC.

[the gunslinger 3,366]

One of many who must be worried that green and Whyte get convicted

[Frankie 8,287]

http://www.professionaladviser.com/professional-adviser/news/2440999/ex-advisers-charged-with-multi-million-pound-tax-fraud?utm_medium=email&utm_term=&utm_content=Ex-advisers%20charged%20with%20multi-million%20pound%20tax%20fraud&utm_campaign=IFA.Update_RL.EU.A.U&utm_source=PA.DCM.Editors_Updates

 

Two former financial advisers and an investment banker are among ten individuals who have been charged with tax fraud involving a multi-million pound film investment scheme.

 

Richard Hughes is the financier in the frame, co-founder of Zeus Capital. The firm brought online retailer boohoo.com to the AIM in a £560m IPO in 2014, and advised on the takeover of Glasgow Rangers FC in 2012.

 

HM Revenue and Customs (HMRC) and the Crown Prosecution Service (CPS) have alleged Hughes and the other defendants used another arm of his business, Zeus Partners, to "cheat the Revenue" out of tax, via an elaborate film investment scheme.

 

One of the individuals charged in the case, Dominic Ryder, used to work for Zeus. He now works for Future Capital Partners, which also sets up film tax schemes.

 

Also charged is Christopher Charles Ward, chairman and managing director of IFA firm Ward Consultancy for 28 years, according to his LinkedIn profile. The firm entered liquation in 2013.

 

Ward is still active on the Financial Conduct Authority (FCA) register and now runs unregulated Ward Connections from London's exclusive Berkeley Square in Mayfair, to "introduce and connect high net worth individuals to investment opportunities".

 

The second former financial adviser to be charged in connection with the case is Timothy Richardson, a director at Harrogate-based PFP Wealth Management until 2009. Richardson is listed as inactive on the FCA register.

 

Ryder declined to comment. Zeus and Ward did not respond to attempts to obtain a comment.

 

The following have all be charged in the case with cheating HMRC:

 

Katrin Hoffman

Christopher Ward

Matthew Cahill

Dominic Ryder

Jonathan Hirst

Patrick McCoy

Timothy Richardson

Richard Roydon

Stephen Bold

Richard Hughes

Edited January 11, 2016 by Frankie

[forlanssister 3,084]

 

http://www.gersnetonline.co.uk/vb/showthread.php?74953-Former-Rangers-adviser-charged-over-film-scheme-tax-fraud

[26th of foot 5,942]

I was given Craig Houston's tome as a Christmas present and read it in one session on Thursday.

 

Even an interested Bear would find it difficult to list the names of those that 'served' on the club Board these last five years. Further, the list of connected companies is just as, if not more confusing. What is becoming clear, almost without exception; is that slowly but surely, they will end up in front of m'learned gentlemen.

 

This is not a book review, but for me, the book serves as a timely aide-memoire. I can tick off both characters and companies.

[forlanssister 3,084]

From The Times:

 

ZEUS CAPITAL founder Richard Hughes has built up a nest egg to see him through his impending legal battle. Over the past two years, the Manchester-based broker has paid £1.6m in fees to companies controlled by Hughes, 47, and his wife Clare, 42.

 

The financier, who has advised on a slew of floats in recent years, including online fashion retailer Boohoo.com and virtual estate agent Purplebricks, received a summons from the Crown Prosecution Service last week. He is to appear at Birmingham magistrates’ court next month, charged with tax fraud in relation to a £134m film financing scheme.

 

Hughes and nine others are accused of “cheating the Revenue” over the Zeus Partners film scheme, which was sold to 165 moneyed clients, including hedge fund tycoon Hugh Sloane and former Tesco finance chief Laurie McIlwee.

 

Hughes, who has close links to Glasgow Rangers football club, denies he broke the law. Nevertheless, he has stepped down as a director of Zeus Capital, although he is still an adviser. Hughes said the CPS’s decision was “beyond comprehension”. Much like Zeus’s opaque film schemes.

 

http://www.thesundaytimes.co.uk/sto/business/Industry/article1654207.ece

 

 

More detail:

 

Dealmaker is charged with tax fraud over £134m film scheme

 

A corporate financier with close links to Rangers Football Club and Boohoo.com, the online fashion retailer, has been charged with tax fraud after a three-year criminal investigation into a £134 million film investment scheme.

 

Richard Hughes, 47, co-founded Zeus Capital, an award-winning finance company which advised on the buyout of Glasgow Rangers and acted as sole broker to Boohoo.com on its £560 million flotation in 2014.

 

Mr Hughes, who was named the northwest’s top dealmaker in 2014, owned shares in both companies and sat on Boohoo’s board for six years before its flotation. His wife retains a £22 million stake.

 

Last night the CPS said it had charged ten people, including Mr Hughes, with “cheating the Revenue” over their alleged involvement in film investment schemes sold by Zeus Partners, which he co-founded in 2006, to about 165 wealthy investors. Participants included Hugh Sloane, the hedge fund mogul and Tory donor, and Laurie McIlwee, the former chief financial officer of Tesco. There is no suggestion that either has committed wrongdoing.

 

The defendants, who include independent financial advisers, two other ex-employees of Zeus Partners and two investors, are due to appear at Birmingham magistrates’ court next month.

 

Under the schemes, which were revealed by The Times in 2012, each investor was offered a deal to buy films and library content from Seven Arts Entertainment, a US film company. Katrin Hoffman, chief operating officer of Seven Arts, has also been charged.

 

If the films were “blockbusters”, the investors would double their money. If they did badly, the investment would be largely wiped out and the cost written off against the investors’ other income. An investor who put in £160,000 could borrow about £840,000 and claim tax relief on the full £1 million. The potential tax relief could be between £400,000 and £500,000.

 

Films purchased from Seven Arts included Knife Edge, a 2009 British thriller starring Hugh Bonneville and Tamsin Egerton, and The Winter Queen, starring Milla Jovovich.

Zeus Capital has advised on more than £4 billion of transactions in over 100 deals in a decade, including major public offerings such as DX, the parcel and logistics company. There is no suggestion that any of the companies were involved in the film investment schemes. Mr Hughes stepped down as a director in 2015 but retains a majority ownership stake.

 

Mr Hughes’s spokesman said he denied the charges and described the decision to charge him as “beyond comprehension”. He said that HMRC had not “fully understood the business structures and arrangements” and that they had been approved by top lawyers.

 

Boohoo and Zeus Capital declined to comment.

 

http://www.thetimes.co.uk/tto/news/uk/crime/article4658542.ece

 

[116610LV 0]

Does anyone happen to have the court documents regarding this case?

[116610LV 0]

Or even the court filing number? I would love to read up on this story. 

[pete 2,499]

                                     Tax-evader has connections to Rangers

Chinese tax officers are looking into allegations that Mrs I.M. Hi failed to pay tax in the time she was working as a seamstress for Adidas. Mrs Hi has connections to Glasgow Rangers as the Incident took place when Adidas were producing strips for Glasgow Rangers.

Easy peasy.

 

Have Celtic got a statement coming up today? Maybe they can add a bit on about film investment schemes. Their staff were of course producing their own films in another Genre.