Avocet chairman's 'Trouble with the Police'

by DOUG COLLIE

A 'former' website of Martin Frost, currently chairman of the troubled Avocet group of companies, tells how he was charged with fraud 40 years ago and was subjected to numerous Department of Trade & Industry [DTI] inquiries into his business activities.

The extensive site, assembled by Mr Frost more than ten years ago, includes copies of correspondence linked to litigation, and a detailed account of what allegedly happened to him after encountering the Lothian & Borders Police fraud squad.

In a recent circular to the 650 shareholders of Avocet Natural Capital, which purports to be in business to develop 'green' fuel and transform agricultural production Mr Frost took the trouble to robustly deny allegations he had embezzled £14 million of investors' cash.

Two members of the Avocet 'stable - Omega Infinite PLC and Orrdone Farms Ltd. - have been declared insolvent in recent months. But Mr Frost maintains the assets of the business are safe after being switched from Omega (formerly called Avocet Infinite) to Avocet Natural Capital (ANC). As a result of the transfer stakeholders saw their number of shares increase by 50%.

As well as charting his long list of achievements, and his involvement in countless legal actions in the courts of England and Scotland, the 'forgotten' website has entire sections devoted to Mr Frost's apparent business successes and his relationship with the authorities.

The section headed 'Trouble with the Police' describes his first run in with fraud squad officers. He writes: "My fall out with the Lothian and Borders Scottish police started in 1980.The manager of the Bank of Scotland Lauder branch reported me to his local police office for the theft of some £9,000 which I had allegedly obtained from his branch via deception. A zealot of a police woman from the Lothian & Borders fraud squad commenced a crusade against this ‘perfidious denizen from Albion’".

Mr Frost claims that despite his protestations he was charged with fraud and the Bank of Scotland instituted debt court action against him in the Court of Session. The Procurator Fiscal decided he did not have a case to answer.

"The Bank of Scotland upon reviewing their paper work found that after due allowances were made I was in credit, the bank thus abandoned their case and I secured a court decree of Absolvitor (dismissal)."

According to Mr Frost's account of events: "Was I left in peace? No, I had been judged guilty by the police and I had to be stopped. My zealot police friend then went out of her way, as she saw it, to bring me to justice. The more I appeared to prosper the more she determined that I was succeeding in my wrong doing. She informed more and more folk of my purported criminality."

He goes on to allege that after he bought Langlands Mill in Newtown St Boswells in 1982 he refinanced the business and had "a grand re-opening ceremony overseen by Mr David Steel MP."

Mr Frost wrote: "It was a televised function. Members and officers of Borders [Regional] Council were invited because their headquarters were across the road. All declined upon the advice of the chief executive who in turn had been informed by my police zealot that I was about to be jailed on account of theft from the Bank of Scotland.

"Furthermore, the chief executive was advised that the very mill purchase was under investigation as it appeared I had stolen the mill’s purchase consideration and had duped the Nat West Bank who was now funding me."

"Similar tales were related both to the Inland Revenue and Customs & Excise. So much so, that the Customs & Excise at first refused to give the business a VAT number. VAT had been informed by the police that the business was likely soon to shut down and the VAT application was probably but part of a long scam for me to get my hands on VAT refundables which I didn’t deserve. A. Hall suppliers and my bankers, the Nat West were given similar stories."

In 1986, adds Mr Frost, he was planning a £10 million investment into County Durham. But the chief executive of the development authority summoned him because he had received a phone call from Lothian & Borders Fraud squad.

"I bought one new factory there but thereafter curtailed my interest as the Lothian & Borders police call had soured the relationship. No less than seven, to my knowledge, local authorities were contacted by Lothian & Borders police force in this manner between 1982 and 1991."

The lengthy web post also claims the fraud squad 'struck lucky' with the DTI.

" I then had seven full investigations which froze my assets and effectively terminated my business career. The amazing thing is that the DTI not only has immunity from prosecution but the most draconian summary powers.

"I believe in all honesty I can say that I have had more DTI investigations against me than any other person since such legislation begun. It must have cost millions. I was never charged or cautioned, just financially ruined."

Towards the end of the post Mr Frost states: "I have reached the reluctant conclusion that the Lothian & Borders police are a corrupt body. It appears that the cronyism of Edinburgh’s legal and judicial system is contagious."