James Stunt insisted today he had no idea that up to £30 million in cash that was allegedly counted and collected from his London office was connected to crime.
A £207 million international money laundering operation to turn ‘dirty’ money to ‘clean gold’ was said to involve vast amounts of ‘criminal cash’ being paid into the bank account of Bradford-based jeweller Fowler Oldfield, who was involved in a gold bar manufacturing partnership with Stunt’s company.
Stunt said he agreed to allow cash to be dropped off by courier, counted and collected from his London base, but believed the money came from the jeweller’s customers and had no idea it could be part of a ‘criminal enterprise.’
Asked by his barrister if he even knew how much money was being counted there, he replied: ‘No.’
Stunt, 42, told the jury that in around 2014 he decided to return to his business life by entering the gold business. He was married to heiress Petra Ecclestone at the time and had access to her substantial wealth, Leeds Crown Court heard.
He invested millions to build a gold refinery in Sheffield but ended up striking a deal with the Yorkshire jewellers to provide ‘scrap’ gold because his original idea to make pure gold bars from unrefined Africa metal failed, the court was told.
He said he expected the price of gold to rise and said one reason was that he learnt from discussions with Bahrain’s royal family that Islamic banking law was to be changed to allow banks in Muslim countries to trade in gold for the first time.
In due course those legal changes were made and the price of gold has risen significantly in the years since.
James Stunt and Petra Ecclestone pictured together at their engagement party in 2011
James Stunt told the court he had no idea how much money was being counted at his opulent London office (pictured)
The socialite formed Stunt and Co so he could enter the gold business and said he expected to ‘lose money for five or six years.’
Stunt said the move was supported by his wealthy father-in-law Bernie Ecclestone.
He spent £1 million furnishing plush offices in London, which cost another £1m a year to rent, Leeds Crown Court heard.
The initial plan was to source unrefined ‘dore’ gold from Africa – effectively rocks containing gold to be extracted in a refining process.
Stunt’s grand plan was to refine Stunt & Co branded gold bars. He struck a deal with the Sheffield Assay Office – one of a network of official government offices that test the purity of precious metals – to build a refinery for gold production.
The deal was ratified by the then Business Secretary Vince Cable and involved Stunt paying £25,000 a year for the lease.
The refinery cost £2.6m to build but Stunt told the court it ended up being ‘useless’, as an acceptable source of unrefined dore gold couldn’t be found.
Meanwhile, in 2015 Stunt signed a deal with Formula One – which was run by his father-in-law – to make grand prix commemorative gold coins.
James Stunt with Petra Ecclestone and her father Bernie Ecclestone in Mayfair in 2010
Stunt struck a deal with Bradford-based jeweller Fowler Oldfield
Police allege that up to £30 million in cash was counted and collected at Stunt’s London office
James Stunt pictured with his then-wife Petra Ecclestone at the Monaco Grand Prix in May 2012
James Stunt made huge charity donations during his marriage to Petra Ecclestone and his generosity earnt him an audience with King Charles, the court heard
A look at Stunt’s huge mansion in Los Angeles which he shared with his ‘staggeringly wealthy’ ex-wife, Formula One heiress Petra Ecclestone
Desperate for a source of gold to make his Stunt bars, he struck a deal with the Bank of Nova Scotia to buy their gold bars for use in his refining process, the court heard.
Mr Ecclestone personally guaranteed the credit agreement, the jury was told.
Stunt said he was also introduced to a ‘very respectable’ Yorkshire-based company Fowler Oldfield and they agreed a ‘joint venture’ to make gold bars using ‘scrap’ gold sourced by the jewellers.
Stunt initially went to a business lunch with co-defendants Gregory Frankel and Daniel Rawson from Fowler Oldfield and was ‘very impressed’ with their ‘know how.’
Their partnership was signed in August 2015, with Stunt and Co getting 70% of any profits and Fowler Oldfield 30%.
Stunt said he spent around £500,000 on a machine to refine gold from scrap.
Several months later Stunt said he attended a meeting with Frankel who suggested another venture.
‘He explained he wanted to use Stunt and Co as a cash collection agency,’ said Stunt.
Fowler Oldfield had a usual deal that when cash is collected by the Post Office or the security firm G4S it is ‘immediately credited’ to their NatWest bank account, the court heard.
Stunt said Fowler Oldfield had customers who wanted to deposit cash in London.
Cash would be delivered to Stunt’s London office and collected by the official agencies to be paid into the bank.
He said he agreed the arrangement after running it past his own lawyers and discussing the matter with Mr Ecclestone.
Stunt, Gregory Frankel, 47, Daniel Rawson, 47, Haroon Rashid, 54, and Arjun Babber, 32, all deny money laundering.
The case continues.
