Investment Bankers in Dock on £2.5m Film Tax Fraud Charges

Seven investment bankers are in the dock after being charged over allegations of an elaborate £2.5m film tax fraud.

The bankers, along six other alleged fraudsters, appeared at London Magistrates' Court accused of setting up two firms to allow them to submit false tax returns. The firms were in film development.

Under corporate law the suspects would have been able to claim tax relief on the companies' losses.

None of the 13 had any experience in film development, the court heard.

It is alleged that between January 2007, and February 2012, 10 of the defendants, four of whom were members of the now dissolved Edinburgh and Walsh LLP, conspired to submit false returns in order to claim tax relief on the partnership's losses.

Seven defendants are also alleged to have conspired to commit a similar fraud relating to the firm Jenkins and Hyde and Maclellan LLP over the same period.

Three of the seven were members of that partnership.

Terence Potter and Kimberley Murphy face three charges of conspiracy to cheat the Inland Revenue.

Neil Williams-Denton and Elspeth Mundy face two counts and the remaining nine individuals face one count of the same offence.

Andrew Penhale, deputy head of fraud at the CPS, said: "Following an investigation by HMRC, the Crown Prosecution Service has authorised charges against three women and 10 men in connection with allegations that they conspired to cheat the revenue out of £2.5m of tax, via a complex film scheme designed for that purpose."

Donald Toon, director of criminal investigation at HMRC, said: "HMRC carried out a thorough investigation and the matter will now be put before the courts. The vast majority of people pay the tax they owe, but for those we suspect may not be, no matter who you are or what your profession, it's only right we investigate."

Charges in full:

Terence Potter – three counts of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to both Edinburgh and Walsh LLP and Jenkins and Hyde and Maclellan LLP.

Neil Williams-Denton - two counts of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to both Edinburgh and Walsh LLP and Jenkins and Hyde and Maclellan LLP.

Christopher Atkins - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

Kimberley Murphy - three counts of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to both Edinburgh and Walsh LLP and Jenkins and Hyde and Maclellan LLP.

Christine Slater - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

Elspeth Mundy - two counts of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to both Edinburgh and Walsh LLP and Jenkins and Hyde and Maclellan LLP.

Vincent Walsh - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

Jason Edinburgh - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

Assad Amin - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

Michael Elsom - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Edinburgh and Walsh LLP.

James Hyde - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Hyde and Maclellan LLP.

Phillip Jenkins - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Jenkins and Hyde and Maclellan LLP.

Hamish Maclellan - one count of Conspiracy to cheat the Revenue, contrary to section 1(1) of the Criminal Law Act 1977 relating to Jenkins and Hyde and Maclellan LLP.