Corruption
NEW UK BRIBERY ACT CONVICTIONS: City
directors convicted in £23m “Green biofuel” trial
Cara Dowling Solicitor-Advocate,
Litigation & International Arbitration, Global Anti-Corruption and
Compliance
Three men were today (5 Dec 2014) convicted as part of
the Serious Fraud Office’s investigation into Sustainable Growth Group (‘SGG’)
including its subsidiary companies Sustainable AgroEnergy plc (‘SAE’) and
Sustainable Wealth (UK) Investments Ltd (‘SWI’).
Gary Lloyd West, former Director and Chief Commercial Officer of SAE, James Brunel Whale, former Director, Chief Executive Officer and Chairman of SGG and Stuart John Stone, Director of SJ Stone Ltd, a sales agent of unregulated pension and investment products, were convicted of conspiracy to commit fraud, conspiracy to furnish false information, fraudulent trading and Bribery Act 2010 offences at Southwark Crown Court.
The SFO’s criminal investigation focused on the selling and promotion of SAE investment products based on “green biofuel” Jatropha tree plantations in Cambodia. The green biofuel products were sold to UK investors who invested primarily via self-invested pension plans (SIPPs). These investors were deliberately misled into believing that SAE owned land in Cambodia; that the land was planted with Jatropha trees, and that there was an insurance policy in place to protect investors if the crops failed.
Mr West was convicted of:
Conspiracy to commit fraud by false representation contrary to s.1 of the Criminal Law Act 1977, (count 1).
Fraudulent trading, contrary to s. 993 of the Companies Act 2006, (count 2).
Conspiracy to furnish false information, contrary to s.1 of the Criminal Law Act 1977, (count 3).
Two counts of Bribery contrary to s. 2(1) and (2) of the Bribery Act 2010, (counts 5 and 7).
He was acquitted by the jury of one count of Bribery contrary to s. 1(1) and (2) of the Bribery Act 2010, (count 8).
Mr Whale was convicted of:
Conspiracy to commit fraud by false representation contrary to s.1 of the Criminal Law Act 1977, (count 1).
Fraudulent trading, contrary to s. 993 of the Companies Act 2006, (count 2).
Mr Stone was convicted of:
Conspiracy to furnish false information, contrary to s.1 of the Criminal Law Act 1977, (count 3).
Two counts of Bribery contrary to s. 1(1) and (2) of the Bribery Act 2010, (counts 4 and 6).
A fourth defendant was acquitted by the jury of all the charges against him.
Commenting on the verdict, Director of the SFO, David Green CB QC said:
“These three individuals preyed on investors, many of whom were duped into investing life savings and pension funds. As a result, many lost life-changing amounts of money.
This successful conclusion of the SFO’s investigation clearly demonstrates the harm that this type of investment fraud has on victims and the SFO’s ability and determination to bring criminals to justice.”
Mr West’s and Mr Stone’s charges and convictions under the Bribery Act 2010 are the first to be secured by the SFO since the act came into law in July 2011. The Act, which is not retrospective, applies to the whole of the UK and provides for wide extra-territorial jurisdiction to deal with bribery committed outside the UK.
All the convicted defendants will be sentenced at Southwark Crown Court on 8 December 2014, in court 5. They have been remanded on conditional bail until that date. The SFO will pursue confiscation orders against all three convicted defendants.
Gary Lloyd West, former Director and Chief Commercial Officer of SAE, James Brunel Whale, former Director, Chief Executive Officer and Chairman of SGG and Stuart John Stone, Director of SJ Stone Ltd, a sales agent of unregulated pension and investment products, were convicted of conspiracy to commit fraud, conspiracy to furnish false information, fraudulent trading and Bribery Act 2010 offences at Southwark Crown Court.
The SFO’s criminal investigation focused on the selling and promotion of SAE investment products based on “green biofuel” Jatropha tree plantations in Cambodia. The green biofuel products were sold to UK investors who invested primarily via self-invested pension plans (SIPPs). These investors were deliberately misled into believing that SAE owned land in Cambodia; that the land was planted with Jatropha trees, and that there was an insurance policy in place to protect investors if the crops failed.
Mr West was convicted of:
Conspiracy to commit fraud by false representation contrary to s.1 of the Criminal Law Act 1977, (count 1).
Fraudulent trading, contrary to s. 993 of the Companies Act 2006, (count 2).
Conspiracy to furnish false information, contrary to s.1 of the Criminal Law Act 1977, (count 3).
Two counts of Bribery contrary to s. 2(1) and (2) of the Bribery Act 2010, (counts 5 and 7).
He was acquitted by the jury of one count of Bribery contrary to s. 1(1) and (2) of the Bribery Act 2010, (count 8).
Mr Whale was convicted of:
Conspiracy to commit fraud by false representation contrary to s.1 of the Criminal Law Act 1977, (count 1).
Fraudulent trading, contrary to s. 993 of the Companies Act 2006, (count 2).
Mr Stone was convicted of:
Conspiracy to furnish false information, contrary to s.1 of the Criminal Law Act 1977, (count 3).
Two counts of Bribery contrary to s. 1(1) and (2) of the Bribery Act 2010, (counts 4 and 6).
A fourth defendant was acquitted by the jury of all the charges against him.
Commenting on the verdict, Director of the SFO, David Green CB QC said:
“These three individuals preyed on investors, many of whom were duped into investing life savings and pension funds. As a result, many lost life-changing amounts of money.
This successful conclusion of the SFO’s investigation clearly demonstrates the harm that this type of investment fraud has on victims and the SFO’s ability and determination to bring criminals to justice.”
Mr West’s and Mr Stone’s charges and convictions under the Bribery Act 2010 are the first to be secured by the SFO since the act came into law in July 2011. The Act, which is not retrospective, applies to the whole of the UK and provides for wide extra-territorial jurisdiction to deal with bribery committed outside the UK.
All the convicted defendants will be sentenced at Southwark Crown Court on 8 December 2014, in court 5. They have been remanded on conditional bail until that date. The SFO will pursue confiscation orders against all three convicted defendants.
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