John Tasker Lewis; Ian Michael Christmas; Russell Philip Foot; James Cameron v The Attorney General

JurisdictionJersey
CourtCourt of Appeal
JudgeSir John Nutting, Bt.,C. Nugee,R. Collas,Bailiff
Judgment Date18 April 2013
Neutral Citation[2013] JCA 78
Date18 April 2013

[2013] JCA 78

COURT OF APPEAL

Before:

Sir John Nutting, Bt., Q.C., President; C. Nugee, Q.C., and; R. Collas, Bailiffof Guernsey.

John Tasker Lewis
Ian Michael Christmas
Russell Philip Foot
James Cameron
and
The Attorney General

Advocate O. A. Blakeley for Lewis.

Advocate S. Chiddicks as Amicus for Lewis.

Advocate R. J. MacRae for Christmas.

Advocate R. Tremoceiro for Foot.

Advocate T. V. R. Hanson, assisted by AdvocateC. M. Marr, for Cameron.

Advocate G. Baxter as Amicus for Cameron.

M. T. Jowitt, Esq., Crown Advocate.

Authorities

Investors (Prevention of Fraud) Investment (Jersey) Law 1967.

Young v Attorney General [1999] JLR 17 .

Court of Appeal (Jersey) Law 1961.

R v Richardson (1971) 2 W.L.R. 889 .

R v Stephen Westwell (1976) 62 Cr. App. R. 251 .

Lau Pak Ngam v R (1966) Crim L.R. 443 .

R v Markus (1976) AC 35 .

Prevention of Fraud (Investments) Act 1958.

Channel Islands Knitwear Co. Ltd. v Hotchkiss [2001] JLR 570 .

R v Mendez [2010] EWCA Crim. 516 .

Simester and Sullivan's Criminal Law: Theory and Doctrine (4th Edition).

Chan Wing-Sui v R (1995) AC 168 (PC) .

Hui Chi-Ming v R (1992) 1 AC 34 (PC) .

Criminal Offences (Jersey) Law 2009.

R v Stringer (2011) EWCA 1396 .

Galbraith 73 Cr. App. R. 124 .

A.G. v Capuano [2003] JLR 623 .

R v Shippey (1988) Crim. L.R. 767 .

Thomas and Others (2009) EWCA Crim. 1682 .

Bhojwani v AG [2011] JCA 034 .

R v Boakye , Court of Appeal, March 12 1992.

R v Brown (Jamie) (1998) Crim. L.R. 196 .

R v Brown (Davina) (2002) 1 Cr. App. R. 5 .

R v Kray (1969) 53 Cr. App. R. 412 .

R v West (1996) 2 Cr. App. R 374 .

R v Taylor and Taylor 98 Cr. App. R 361 .

R v Donnelly (1998) Crim L.R. 131 .

R v Day [2003] EWCA Crim. 1060 .

R v Clinton 97 Cr. App. R. 320 .

Teeluck v State of Trinidad and Tobago ; John v Same (2005) 1 WLR 2421.

Chan Fat Chu Raymond v HKSAR (2009) HKCFA 23 .

R v Dossi 13 Cr. App. R 159 .

Aladesuru v R [1956] AC 49 .

AG v O'Brien [2006] JLR 133 .

Snooks v United Kingdom [2002] JLR 475 .

Tilley v Law Officers (Guernsey C.A. Judgments 88) .

R v Hopkins-Husson [1949] 34 Cr. App. Rep. 47 .

Styles and Others v AG [2006] JCA 095 .

Waite v AG [2007] JCA 170 .

Barton v AG [2007] JCA 172 .

Taylor v Law Officers of the Crown in the Court of Appeal in Guernsey GLR 2007/8 .

R v Hulusi and Purvis 58 Cr. App. R 378 .

R v Matthews and Matthews 78 Cr. App. R. 23 .

R v Barrick (1985) 7 Cr. App. R. 142 .

AG v Renouf (2001/125) .

Burton v The Law Officers , 6th February, 2012.

Wicks, Sharp and Towers v The Law Officers , 22nd March, 2012.

Cooper v AG 2001/6 .

Caboz v AG [2004] JLR 80 .

Harrison v AG [2004] JLR 111 .

AG v Speck [2004] JRC 100 .

R v Kevin Brown (1984) 79 Cr. App. R. 115 .

Fraud — appeals against conviction and sentence.

Appeals against conviction and sentence.

THE PRESIDENT:
A. INTRODUCTION
1

On 16th May 2012 the Appellants appeared before Mr Commissioner Pitchers and Jurats in the inferior Number of the Royal Court to answer an indictment containing 25 counts of fraudulent inducement to invest or lend money, one count of conspiracy to do so and one count of attempting to do so. On 20th July 2012 the Court retired to consider the verdicts and on 26th July returned and severally convicted the Appellants on 21 of those counts. The Appellant Christmas was convicted of one count involving £100,000; the Appellant Lewis was convicted of 13 counts totalling £785,000; the Appellant Foot was convicted of 13 counts totalling £678,000; and the Appellant Cameron was convicted of 16 counts totalling £943,000. Sentence was adjourned until 4th October 2012 during which day the Crown opened its case for sentencing purposes and the Advocates for the Appellants made pleas in mitigation. On 5th October the Royal Court imposed terms of imprisonment of 15 months on the Appellant Christmas and 4.5 years on the Appellants Lewis, Foot and Cameron. Orders for disqualification as directors of companies were also made.

2

Subsequently the Appellants submitted Notices of Application for Leave to Appeal against both conviction and sentence on a number of grounds. The applications were due to be heard at the November 2012 session of the Court of Appeal. However as a result of changes of advocates for two of the Appellants and the appointment of two amici curiae, an application was made to a Single Judge of this Court on 15th November for a postponement of that hearing. The Judge granted the application and on 21st November the Appellants were granted leave to appeal. A new date for hearing was set down for 21st January 2013. The Full Court heard the appeal over the course of six days between 21st, and 23rd-25th January and 26th and 27th February.

3

Article 2 Investors (Prevention of Fraud) Investment (Jersey) Law 1967 is to the following effect so far as the counts in this indictment were concerned:–

“Fraudulent Inducement to invest money.

Any person who, by any statement, promise or forecast which the person knows to be misleading, false or deceptive, or by any dishonest concealment of material facts, or by the reckless making (dishonestly or otherwise) of any statement, promise or forecast which is misleading, false or deceptive induces or attempts to induce another person–

(a)(i) to lend to the person, or to any other person, money on terms involving payment of interest or repayment at a premium, or

(ii)…

(b)….

(c) to take part or offer to take part in any arrangement with respect to property other than securities, being arrangements the purpose or effect, or pretended purpose or effect, of which is to enable persons taking part in the arrangements (whether by becoming owners of the property or any part of the property or otherwise) to participate in or receive profits or income alleged to arise or to be likely to arise from the acquisition, holding, management or disposal of such property, or sums to be paid or alleged to be likely to be paid out of such profits or income; or

(d)….

shall be liable to a fine or imprisonment for a term not exceeding 7 years or to both such fine and such imprisonment.”

4

In the case of Young v Attorney General [1999] JLR 17, this Court approved the summing up of Sir Godfray Le Quesne, sitting as a Commissioner, in respect to offences contrary to Article 2(c), in the following terms:–

“Six things have to be proved. First, that the defendant made the statement, promise or forecast. Secondly, that the statement, promise or forecast was misleading, false or deceptive. Thirdly, that the defendant knew when he made the statement, promise or forecast that it was misleading, false or deceptive. Fourthly, that by the statement, promise or forecast, he induced somebody to take part or to offer to take part in some arrangements. Fifthly, that those arrangements were arrangements with respect to some property other than securities. Sixthly, that the purpose or effect of the arrangements was to enable persons taking part in them to participate in, or to receive profits, alleged to arise from the acquisition, holding, management, or disposal of the property.”

5

It was common ground at the trial that these ingredients, with appropriate adaptation, were those which the Crown had to prove in respect of the counts in the indictment.

6

The circumstances which gave rise to the charges occurred between 2003 and 2008. During the material time the Appellant Christmas was the Assistant Magistrate of the Bailiwick, a post which he had held since 2001: he had little experience of business. The other Appellants had worked for several years in the investment industry and each had a number of clients in Jersey.

7

The vehicles for their fraudulent activity consisted of two companies, De Lec Ltd (“De Lec”) and Sunstone Holdings Ltd (“Sunstone”). The former was created out of the first letters of the surnames of the Appellants Lewis and Christmas and a third man, Eric Evans, who, like them, was a director of De Lec, but who resigned in July 2006 after a dispute with the Appellant Lewis as to how the business should be run. Eric Evans gave evidence for the Crown at the trial. The Appellant Lewis started Sunstone with the Appellants Foot and Cameron to take additional advantage of the client base which these three Appellants enjoyed from their investment consultancy business. The three of them were all directors of Sunstone.

8

There were 4 counts in the indictment concerning De Lec, Counts 1–4. The Appellants Christmas and Lewis were charged in those counts. Count 5 was a conspiracy count against both these Appellants and concerned a company associated with De Lec. Count 6 charged the Appellant Foot alone. The remaining counts, Counts 7–27, concerned Sunstone and, generally, involved the Appellants Lewis, Foot and Cameron in various combinations.

9

The grounds of appeal are extensive. There are few aspects of the case, both factual and legal, from the investigation of the Jersey Financial Services Commission (“JFSC”) to the verdict, which do not form the subject matter of some sort of complaint by one or other, or all, of the Appellants. Accordingly it is necessary to discuss the facts in some detail.

B. THE FACTS
10

In late 2003 the Appellants Lewis and Christmas decided to invest in the American property market. At that time house prices were increasing exponentially: in Florida, for example, where most of the Appellants' property investments were made, the rate of increase was 10–15% per annum. It is apparent from documents found by police at the home addresses of the Appellants Christmas and Lewis that their intention was to reserve off-plan properties, to borrow enough money to acquire a portfolio of about $30 million and then to sell it after three years,...

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3 cases
  • The Attorney General v Shaen Teresa Gaber
    • Jersey
    • Royal Court
    • 31 July 2013
    ...Barrick [1985] 7 Cr. App. R. (S) 142 . AG -v- Huchet [2013] JRC 002 . AG -v- Renouf 2001/125 . Lewis Christmas Foot and Cameron -v- AG [2013] JCA 078 . Young -v- AG 1998/147 . Inferior Number Sentencing — fraud. Sentencing by the Inferior Number of the Royal Court, following a guilty plea t......
  • Marie Thereze Cotrel v Ian Michael Christmas and John Tasker Lewis and Lloyds TSB Offshore Ltd and Clerical Medical Investment Group Ltd and The Viscount
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    • Royal Court
    • 24 May 2013
    ...C. Jones for the First Defendant. Authorities Investors (Prevention of Fraud)(Jersey) Law 1967. Lewis Christmas Foot and Cameron -v- AG [2013] JCA 078 . Proceeds of Crime (Jersey) Law 1999. Code of Conduct of English Barristers. Royal Court Rules 2004. Dick -v- Dick [1990] Notes — 2C . Watk......
  • The Attorney General v Graeme Frank Butcher
    • Jersey
    • Royal Court
    • 21 July 2014
    ...JRC 077 . AG v Kittleson [2011] JCA 052 . AG v Lewis, Christmas, Foot and Cameron [2012] JRC 177 . Lewis, Christmas Foot and Cameron v AG [2013] JCA 078 . Criminal Justice (Suspension of Prison Sentences)(Jersey) Law 2003. Inferior Number Sentencing — misconduct in a public office — misappr......

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