Peter Clarence Foster, a former senior executive of Foremost Bodycare Corporation Ltd was sentenced today at St Albans Crown Court to 33 months imprisonment (on 3 charges to run concurrently) for attempted fraud through the use of forged documents in order to secure preferential business terms. He has been disqualified from acting as a company director for 5 years.
On 18 September 2000, Foster (DOB 26/9/62) pleaded guilty to 3 charges of using a false instrument contrary to the Forgery and Counterfeiting Act 1981.
Background
In February 1995 Foremost Bodycare Corporation Ltd ('Foremost') was set up. Peter Foster ('Foster') was a senior executive, closely involved in the running of the company. Shortly after the company was set up Foster came up with the idea of manufacturing and marketing a new slimming pill, and even went so far as approaching Pamela Anderson's agent to get the US actress to endorse the new product.
Inter Health and Gee Lawson Chemicals Ltd
In mid 1995 Foster approached Inter Health (suppliers of raw materials to the 'nutritional food' industry) as one of its products is a natural appetite suppressant used in some slimming pills. Discussions about placing an order were held at the Ritz in London. In late June, Foster confirmed that he was interested in placing an order which, including VAT, was worth nearly half a million US dollars.
When Foster was told that Inter Health would require payment for the order to be made up-front and that no credit could be given, he got angry and said that the deal was off. Asked by Inter Health to reconsider, Foster replied by sending a letter concerning Foremost's creditworthiness, claiming for example that the company had in the region of US$4.5 million cash in the bank.
On 5 July 1995 Inter Health wrote to Foster offering a discount on the order but again only if it was paid for up-front and attached to the letter was a pro forma invoice that reflected this. This invoice was later altered to suggest that Inter Health were allowing Foster credit. Foster unsuccessfully used the forged invoice to try and deceive Gee Lawson - rival suppliers- into giving him credit based on the idea that other suppliers were clearly prepared to do so. One of the Gee Lawson directors noticed that the words 'Terms: 30 days' were typeset differently to those in the rest of the invoice and became suspicious.
There were further dealings between Foremost and Inter Health but no contract was ever signed as Foremost were unable to meet Inter Health's true payment terms.
Dun & Bradstreet
Around the same time, Foster met with representatives from Dun & Bradstreet ('D & B') a company that provides business information, including credit ratings. He said that he was unhappy with the existing information held on 'Foremost' by D & B, arguing that it did not reflect the financial backing of the company. He told D & B that Foremost had £2.5 million in the bank and a turnover of £22 million, and that it had 7,000 retail outlets and expected to have another 5,000 by Christmas. He handed over a number of documents for D & B to revise its credit assessment.
Through his correspondence with D & B, Foster received letters and documents. These were doctored and subsequently used by Foster in his dealings with suppliers to try and deceive them into thinking that Foremost's credit rating was better than D & B had assessed it to be.
Custom Pharmaceuticals
In June 1995 Foster held discussions with Custom Pharmaceuticals Ltd ('Custom') who are manufacturers of tablets and capsules for the health and pharmaceutical industries. He said that he wanted Custom to make and pack the new slimming tablet. Told that Custom's terms included a requirement that their costs be paid in advance Foster said that Foremost would pay cash for the first order but that after that he would want credit terms.
Foster sent Custom a forged D & B 'Comprehensive Report', the evaluation box gave Foremost more favourable credit particulars than D & B had ever given the company (and by this time D & B had withdrawn all credit rating from Foremost). Custom were impressed by the doctored report and were ready to do business until Gee Lawson contacted them to let them know of their dealings with Foremost.
Proceedings
- The case was referred to the SFO from the CPS in 1995
- 1996: Foster absconded to Australia using a false passport
- Foster was arrested by Australian police and served a term of imprisonment for unrelated offences in Australia
- 1997 an SFO application for his extradition was made to the Australian authorities. Foster absconded.
- February 1998 Foster arrested again by Australian police
- 30 March 1999: an extradition warrant was signed by the Australians. Foster sought judicial review of the decision which was refused.
- March 2000 Foster's appeal against the refusal for judicial review was heard, judgement was reserved.
- 30 June 2000 Foster was extradited from Australia. He was charged and refused bail at St Albans Magistrates Court.
- 18 September 2000 Foster pleaded guilty to 3 charges of using a false instrument.
Notes for Editors
Peter Foster has pleaded guilty to using forged documents, he has not made admissions in respect of forging the documents himself.
Because of the time Foster was held in custody in Australia whilst fighting extradition proceedings and the time he has been held in custody since his return to the UK, he is not required to serve any further imprisonment
The SFO Case Controller was Lesley Griffiths
Counsel for the SFO was Simon Wild
Hertfordshire Police were involved in the investigation.
SFO Contacts
David Jones, Head of Communications 020 7239 7001
Caroline Paul, Press Officer 020 7239 7004
Out of hours mobile 0781 807 6688
