Former SFO lawyer hired by man arrested over LCF

The former most senior lawyer at the Serious Fraud Office has been hired by a man arrested in one of its most high-profile investigations just months after quitting.

Alun Milford quit as SFO general counsel in January and is now at law firm Kingsley Napley working for Paul Careless, whose company Surge Financial marketed bonds for the collapsed London Capital & Finance.

LCF went bust in February owing £237 million to 11,600 investors after putting much of the money into high-risk businesses such as equestrian stables and tropical hotel developments connected to people linked to the firm.

Careless was arrested in June by the SFO. He denies wrongdoing, saying he was merely marketing products which had been authorised by LCF.

Kingsley Napley announced the coup of hiring such a senior SFO man with a statement praising his 26 years as a public prosecutor and roles including heading the SFO’s proceeds of crime unit and the Crown Prosecution Service’s asset forfeiture division.

It is believed Careless has been subjected to certain asset freezes during the investigation, some of which are being lifted. Separately, the SFO has permitted another of the men linked to LCF, showjumping enthusiast Spencer Golding, to sell a horse for €270,000 in a partial lifting of a court-approved freeze on some of his assets.

Industry data shows the horse, called Uncas S, was bought on Monday by Chinese owner and rider Li Zhenqiang.

Administrators to LCF claim bondholders are owed £12.2 million by Golding’s FS Equestrian Services business.

Careless, Milford, Golding, the administrators and the SFO declined to comment.