Michael Brown (fraudster)

Michael Robert Alexander Brown (born 19 April, 1966 in Glasgow), is a Scottish convicted fraudster, who between 10 February and 30 March 2005 donated £2.4 million to the Liberal Democrats. He was the largest donor the party had ever had, giving ten times more than anything it had received before.

Biography

Born in Glasgow, Scotland, he claimed to have been the son of a Lord and gone to Gordonstoun and St Andrews University. In actual fact he had failed his maths O Level at his local school, and did a City and Guilds in catering at Glasgow College of Food Technology.

Brown resided in Majorca, Spain and claimed to have been an international bond trader, who's clients were "vetted" by US embassy officials and Special Branch before he accepted their money. Brown's clients include former Manchester United chairman Martin Edwards, from whom he was later found guilty of defrauding £8million out of a total deception of £36million.

In June 2008, after being charged on various counts of fraud and money laundering, Brown fled bail and a warrant was subsequently issued for his arrest. Brown was last known to live in Templewood Avenue, Hampstead, north-west London. He had told various former clients to have been suffering from cancer, before taking the surname Campbell-Brown and stopped shaving, before he disappeared.

In August 2008 Southwark Crown Court Judge Wadsworth decided that the trial at the High Court could proceed in absentia, and that as private funding had run out to his legal team, Brown would be eligible for Legal aid.

In November 2008, a trial was held at the High Court in absentia. The jury was told Brown carefully crafted an "illusion of wealth and influence" designed to give him social acceptability which he craved, which included pretending his father was a Lord, claimed connections with royalty, and promised investors returns of up to 50%. Martin Edmunds, QC, prosecuting, said after defrauding Edwards of £36million, he used the money to fund an "extravagant lifestyle," pay business expenses and keep other investors happy with "pretend" returns. Brown rented a £49,000-a-year Mayfair apartment where he "conducted negotiations" with Mr Edwards, an impressive office in the same area, a Range Rover with the number plate 5 AVE, a Bentley and a Porsche. Brown also spent £2.5m on a private jet, £400,000 on an ocean-going yacht and £327,000 on an entertainment system for his home in Majorca.

On 28th November, 2008, the jury took nine-and-a-half hours to unanimously convict him on four counts - two thefts, one of furnishing false information and one of perverting the course of justice between 9 February 2005 and 17 April 2006. He will not be sentenced until apprehended.

Electoral Commission on donation to Liberal Democrat party

Because he was residing in Majorca, Spain, at the time of the donation, and was not registered to vote in the United Kingdom, Michael Brown used a company name as the official legal donor. In October 2006 the High Court in London ruled that the company which Brown used to donate the money to the Liberal Democrats, 5th Avenue Partners had never traded in bonds. The Electoral Commission issued a statement stating:

"The Electoral Commission has previously made clear its view that it was reasonable for the Liberal Democrats—based on the information available to them at the time—to regard the donations they received from 5th Avenue Partners Ltd in 2005, totaling just over £2.4m, as permissible. It remains the Commissions view that the Liberal Democrats acted in good faith at that time, and the Commission is not re-opening the question of whether the party or its officers failed to carry out sufficient checks into the permissibility of the donations. Nevertheless, we have always said that if any additional information that has a bearing on the permissibility of the donations comes to light, we would consider the matter further. It is not clear to the Commission that 5th Avenue Partners Ltd was carrying on business in the UK at the time the donations were made. If not, then the donations were impermissible. Under Section 58 of the Political Parties, Elections and Referendums Act 2000, the Commission has the power to apply to a court for an order that the party must forfeit to the Consolidated Fund an amount equal to the value of any impermissible donation. We are considering the available evidence and expect to reach a decision on whether to apply for such an order in the next few weeks."

Robert Mann, a Los Angeles lawyer, has issued a High Court writ demanding £683,000 from the Lib Dems claiming that they allowed their desire for the windfall to overcome any doubts about its source.