AG v Michel and Gallichan

• Jurisdiction: Jersey
• Court: Royal Court
• Judge: Sir Geoffrey Nice,Jurats Le Brocq,Le Breton,Allo,Newcombe,Liddiard
• Judgment Date: 18 June 2007
• Neutral Citation: [2007] JRC 120
• Date: 18 June 2007

[2007] JRC 120

ROYAL COURT

(Samedi Division)

Before:

Sir Geoffrey Nice, Esq., Commissioner and Jurats Le Brocq, Le Breton, Allo, Newcombe and Liddiard.

The Attorney General

and

Peter Wilson Michel

Simone Anne Gallichan

C. E. Whelan, Esq., Crown Advocate.

Advocate D. E. Le Quesne.

Advocate C. M. Fogarty.

No Authorities

Sentencing by the Superior Number of the Royal Court, following conviction by the Inferior Number on 10 ^th May, 2007, on charges of:

Peter Wilson Michel

First Indictment

1 count of: Assisting another to retain the benefit of criminal conduct, contrary to Article 32 (1) (a) of the Proceeds of Crime (Jersey) Law 1999. (Count 1).

Second Indictment

9 counts of: Assisting another to retain the benefit of criminal conduct, contrary to Article 32 (1) (a) of the Proceeds of Crime (Jersey) Law 1999. (Counts 1 - 9).

Mr Michel was convicted on all counts. The indictment was severed so that two trials of both accused took place.

Age : 60.

Plea: Not Guilty.

Details of Offence:

Peter Michel was a chartered accountant who used his business to hide stolen funds/funds chargeable to tax and pass the proceeds back to the malefactors. He did this to the extent of many millions of pounds. His methodology involved lies to the authorities, false invoicing and forgery. Mrs Gallichan was found to have committed the offence in the case of one client, where the sum of over £1m was involved.

Details of Mitigation:

Peter Michel had no significant previous convictions recorded against him; he had suffered poor health, as had one of his children from an extra-marital relationship; he had not intended knowingly to launder money; he had not been conscious of acting beyond the prevailing practices of others.

Previous Convictions:

None of significance.

Conclusions:

First Indictment

Starting point 10 years' imprisonment.

Count 1: 9 years' imprisonment.

Second Indictment

Starting point 10 years' imprisonment.

Conclusions:

Count 1: 9 years' imprisonment, concurrent.

Count 2: 9 years' imprisonment, concurrent.

Count 3: 9 years' imprisonment, concurrent.

Count 4: 9 years' imprisonment, concurrent.

Count 5: 9 years' imprisonment, concurrent.

Count 6: 9 years' imprisonment, concurrent.

Count 7: 9 years' imprisonment, concurrent.

Count 8: 9 years' imprisonment, concurrent.

Count 9: 9 years' imprisonment, concurrent.

Total:

9 years' imprisonment.

A confiscation hearing against Mr Michel took place in September 2007.

Sentence and Observations of Court:

First Indictment

Starting point: 8 years' imprisonment.

Count 1: 6 years' imprisonment.

Second Indictment

Starting point: 8 years' imprisonment.

Count 1: 6 years' imprisonment, concurrent.

Count 2: 6 years' imprisonment, concurrent.

Count 3: 6 years' imprisonment, concurrent.

Count 4: 6 years' imprisonment, concurrent.

Count 5: 6 years' imprisonment, concurrent.

Count 6: 6 years' imprisonment, concurrent.

Count 7: 6 years' imprisonment, concurrent.

Count 8: 6 years' imprisonment, concurrent.

Count 9: 6 years' imprisonment, concurrent.

Total:

6 years' imprisonment.

Following the September confiscation hearing a confiscation order of £9.7 million was made against Mr Michel with a three year prison term in default.

Simone Anne Gallichan

First Indictment

1 count of: Assisting another to retain the benefit of criminal conduct, contrary to Article 32 (1) (a) of the Proceeds of Crime (Jersey) Law 1999. (Count 1).

Mrs Gallichan was convicted on one count. The indictment was severed so that two trials of both accused took place.

Age : 58.

Plea: Not Guilty.

Details of Offence:

See Michel above.

Details of Mitigation:

Mrs Gallichan was of good character and was very much junior to her boss, Mr Michel, although having been responsible for some forgeries.

Previous Convictions:

None of significance.

Conclusions:

First Indictment

Starting point 4 years' imprisonment.

Count 1: 2 years' suspended for 2 years.

Sentence and Observations of Court:

First Indictment

Count 1: 120 hours Community Service Order.

THE COMMISSIONER:

1 These are serious cases. Offences were committed as the law in Jersey was known to be changing, and within the offices of Peter Michel offences were being committed of a kind that was specifically being outlawed. Various methods were employed for the commission of these crimes, frequently allowing but brief encounters between the clients engaged in criminal conduct and Peter Michel.

2 Often enough negotiations were little more than a nod or a wink from a person within the group of people Peter Michel was...