£17m bail on hotelier held in US

BRETT Tollman, joint owner of one of London's top hotel groups, has been arrested and indicted in America on charges of fraud, tax evasion and making false statements.

He has been remanded in custody with bail set at more than £17 million. He is pleading not guilty to all charges.

His father, Stanley 'Tolly' Tollman, was named as a fugitive from justice in the US two months ago. But Tolly, 71, fled America and is believed to be staying in London near Buckingham Palace.

New York City's Attorney's Office said it was aware that Tolly was in London, but a spokesman refused to say whether it would be seeking an extradition order. Brett, 41, who was arrested last month in New York for allegedly taking part in the same conspiracy, co-owns the five prestigious Red Carnation Hotels with his mother, Beatrice.

These include 41, so named because it is located at 41 Buckingham Palace Road, as well as the Chesterfield and the Milestone in Kensington.

Beatrice, who lives in a multi-million pound home home in Eaton Square near Buckingham Palace, declined to discuss the family's business affairs. 'I am so very sorry,' she said. 'I have absolutely nothing to say to you about anything.'

Brett, the youngest of her four sons, lives in Manhattan. Last week, the Attorney's Office in New York issued new indictments against him and his father, alleging that they took part in a conspiracy to defraud the Internal Revenue Service between 1991 and 1999. The Tollmans are reputed to have enormous wealth in the US and in Bermuda.

Brett and his mother were at 200th place in the 2002 Mail on Sunday Rich Report, having an estimated fortune of £160 million.