Ecclestone, the former head of Formula One, has been sentenced to 17 months in prison and ordered to pay a fine of 653 million pounds ($756 million euros) to the British treasury after pleading guilty to fraud charges. The 92-year-old billionaire was accused of hiding 400 million pounds ($460 million euros) from the treasury and failing to declare a foundation in Singapore.
The investigation into Ecclestone began in July 2015, and he finally pleaded guilty this Thursday in a London court. As part of his agreement with the Treasury, Ecclestone will pay the outstanding taxes for the last 18 years. However, his prison sentence is suspended for the next two years as long as he does not reoffend.
According to the court, Ecclestone did not disclose a trust in Singapore that held approximately 400 million pounds. He also lied to the British treasury during a meeting in 2015 when questioned about the issue. Initially, Ecclestone denied the charges and claimed that the trust was solely for the benefit of his three daughters.
The prosecutor highlighted that Ecclestone’s answers were “erroneous” and could have led to misunderstanding. However, they clarified that the accused was unaware of the trust’s structure and couldn’t provide a clear response regarding taxes and transfers between accounts. The prosecutor stated that Ecclestone now acknowledges his mistake and understands that taxes should have been paid.
Ecclestone served as the president of Formula One until 2017 when Liberty Media took over management of the sport. The sentencing comes as a significant blow to the motorsport mogul, whose impact on the industry was substantial.