Frank Warren cleared of £1.2m VAT swindle

FRANK WARREN, the boxing promoter who once narrowly survived
  an attempt on his life, was cleared of a £1.2 million VAT
  swindle yesterday. 

  He emerged smiling on to the steps of Southwark Crown
  Court and said that the case was a vindication of the jury
  system. He also castigated Customs and Excise for taking
  him to court and claimed that he had been the victim of a
  "Clouseau inquiry". 

  Mr Warren, who lives in Watton-at-Stone, Hertfordshire,
  said: "I am no angel, and I'm not making myself out to be
  an angel. I don't paint myself to be some
  whiter-than-white guy but I have not done anything
  dishonest. My life is an open book. I would hate to see
  anyone else go through this. It was a terrible nightmare
  and at the end of the day I am vindicated and, I can say,
  delighted about that." 

  With his wife, Susan, and father, Frank Snr, beside him,
  he continued: "Customs and Excise arrested me in a burst
  of publicity. I have answered all their questions over two
  days of seriously long interviews. I answered every
  question. I didn't refuse to answer a single one. And I
  answered every question in court for three days here. I
  have been found not guilty on a unanimous verdict." Plans
  to scrap jury trials in complex financial cases would, he
  added, be a "terrible disgrace". 

  Mr Warren, 48, along with Christopher Roberts, his
  former partner, had been accused of evading VAT as
  their company ran into cashflow problems caused by the
  promoter's lavish lifestyle. Over 21 months the
  prosecution alleged that Mr Warren spent £3.9 million on
  paintings, furniture, antique books and cars. 

  Roberts, a former bank manager, of Mistley, Essex, was
  convicted of the offence but after less than four hours of
  deliberation the jury accepted that Mr Warren had left his
  money matters to others. 

  He was described in court as being as much use with a set
  of accounts as a "camel with a prayer book". Mr Warren,
  who said that he could not even remember the PIN for his
  cash machine card, was also questioned about his
  outgoings including a sum of £13,000. 

  That, the promoter explained, was for a painting bought
  for his home. An outgoing on a Bentley car, however, was
  a business expense. So was £16,750 used to buy a watch
  for one of his top boxers, Prince Naseem Hamed. Other
  business-related payments involved money spent
  converting a Hummer truck given to him by Don King, the
  American promoter, to British specifications. 

  The two defendants were accused of evading £1.2 million
  in VAT after they set up Sports Network (Europe), or
  SNE. It was formed after Mr Warren was banned from
  being a company director as a consequence of an earlier
  matter. As a partner Mr Warren was paid an annual
  salary of £500,000 and enjoyed 85 per cent of the profits.
  In addition he received a £1 million-a-year consultancy
  fee from BSkyB. 

  The prosecution alleged that SNE repeatedly failed to pay
  full VAT in spite of lucrative broadcasting contracts but
  Mr Warren said that all bookkeeping was left to his
  partner. 

  The two men have now fallen out and Mr Warren has
  already repaid the £1.2 million claimed by Customs and
  Excise. 

  Mr Warren told the trial jury that it was "not a crime" to
  enjoy his money but it was nonsense to suggest that he led
  a life of luxury by avoiding tax: "My life as a boxing
  promoter is tough . . . the last thing I want is trouble with
  the VAT." 

  Roberts alone was accused of evading £750,000 VAT in
  connection with Sports Network Ltd (SNL), for which
  Mr Warren was a consultant and received 50 per cent of
  its profits. The jury acquitted him of all but £35,000 in
  relation to that offence. 

  He was remanded in custody until June 1 for pre-sentence
  reports to be prepared.

  BY RICHARD DUCE
  May 16 2000 
  "The Times" - UK broadsheet

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