An entrepreneur who was acquitted on fraud charges following an investigation into a Ponzi-style scheme is launching a new venture aimed at disrupting the fibre broadband market.
Former millionaire Elfed Thomas, 57, is the former CEO of H20 Networks, which was responsible for delivering the UK鈥檚 first fibre-to-home聽networks in Bournemouth and Dundee a decade ago.
However in 2010 鈥� the same year Thomas was crowned E&Y Entrepreneur of the Year Award for the North and Midlands Region – H2O and its backer Total Asset Finance were rocked by a 拢160 million fake contracts scam which resulted in a six-year investigation by the Serious Fraud Office.
In February 2017 four men were sentenced to 44 years in prison following a five-month trial while Thomas and another fellow defendant were acquitted by a jury.
鈥淚t was unreal. I鈥檓 still trying to get to grips with it now,鈥� Thomas told 老九品茶Cloud. 鈥淥ne minute we were a global company with a footprint all over the world 鈥� we鈥檇 just appointed an advisor to raise 拢200m聽 in the City 鈥� then, out of the blue, it all came out.鈥�
Thomas, who was unable to trade for the duration of the case, had to sell the company he founded in 2003 for just 拢1 to CityFibre as he began the long fight to clear his name.
鈥淚t was a very traumatic situation for myself and my family. I lost the company within two to three months and they tried to accuse me of being part of it, which obviously I wasn鈥檛,鈥� he continued.
鈥淭he judge complimented me on the way I set the business up, which they don鈥檛 do lightly. It was quite bizarre really.
鈥淚t wiped me out financially and I didn鈥檛 do anything wrong.鈥�
Thomas鈥� new venture is British Fibre Networks, which will have bases in Llandudno, Wales, and Manchester. It aims to deliver 鈥渙pen access鈥� pure fibre broadband to more than 35 per cent of new-build homes by 2021, benefiting both homeowners 鈥� who will have instant connectivity upon moving in and a choice of providers 鈥� and house builders.
鈥淚n the builders鈥� market it takes time to set up a broadband connection and it鈥檚 a monopolised situation,鈥� he said. 鈥淲e鈥檝e got a leading price comparison site as a partner who will then engage with the consumer and decide which broadband supplier they want.
鈥淲e are completely neutral鈥� this has never been done before.鈥�
He has private equity backing for the venture.
鈥淭his is not an emotional return鈥� investors are attracted to the commercial model because it鈥檚 got legs. It can get good returns and we can get market share quite quickly,鈥� he said.
鈥淚n three years we want to be hitting 30,000-35,000 homes a year.鈥�