Central News, Press Room, Central Criminal Court,

Central News, Press Room, Central Criminal Court, Old Bailey, LONDON, EC4.

Tel: 020 7236 0116.

Southwark Crown Court/john troughton
eMail: news@centralnews.

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centralnews.

co.

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04 April 2000

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The precarious VAT position of Frank Warren’s partnership Sports Network (Europe) was in part because of the promoter’s extravagant spending, a court heard today (Tuesday).

Run with co-defendant Christoper Roberts, they are said to have evaded pnds stlng 1.

2 million in tax between February 1996 and June 1997.

Mr Alan Suckling, QC, told London’s Southwark Crown Court:

‘It is true throughout the period payments had to be made to major creditors, such as boxers, and there were some complaints BSkyB were not good payers.

‘But a significant part of the problem was the level of expenditure by Warren on the refurbishment of his house and furniture, and we will see some cars and payments of previous indebtedness to banks.

‘All of which came from funds of the partnership.

‘

In reports later found in Warren’s briefcase, Roberts wrote ‘it’s juggling balls in the air’ and admitted ‘trying to cover a pnds stlng 800,000 hole’ allegedly owed to the Revenue.

Mr Suckling outlined payments for furniture, fine art, antiques, as well as an architect and workmen’s bills.

He said there were also payments into Bedford Rugby Football Club after Warren became the club’s chairman.

Counsel said as a result SNE was constantly negotiating advances on payments for broadcasting rights or getting temporary loans from merchant banks.

Mr Suckling said as a result VAT payments came ‘last in the pecking order.

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He told the jury: ‘That gives some idea what caused it to be necessary to fraudulently evade paying over the VAT at the times it was due.

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The trial continues tomorrow (Wed).

ends