Mail On Sunday (London)

December 1, 2002

BLAIRS 'USED FRAUDSTER TO BUY FLATS'

by Martin Smith, Andrew Chapman and Ian Gallagher


TONY and Cherie Blair were plunged into a damaging sleaze row last
night amid claims that they used a notorious fraudster to buy them two
luxury flats at a knockdown price.

Australian-born Peter Foster says he was admitted to the Blairs' inner
circle after beginning a love affair with Carole Caplin - Mrs Blair's
'indispensable' confidante and fitness guru.

[...]

Foster has served jail sentences for a string of fraud convictions.

[...]

According to Foster, who is facing extradition, he used the Blair name
to negotiate a discount of around GBP 20,000 on each flat after
convincing the developer that the favourable publicity would add value
to the other units.

However, The Mail on Sunday has learned that Foster's unconnected
business activities are the subject of a current Scotland Yard
inquiry, following complaints from the backers of a separate sales
venture that he has misappropriated their money.

[...]

Foster made claims that he had visited Chequers as a guest of the
Blairs, that they had agreed to be godparents to his baby, and
incredibly even alleged that Government spin doctors had been
instructed to devise means of improving his public image.

He claimed, too, that Cherie was assisting his legal battle against a
deportation order imposed because of his criminal record. Associates
claim his legal fight may be the reason for his courtship of Carole
Caplin.

Last Thursday, his legal team began moves in the High Court to
overturn the order. When The Mail on Sunday sought the official papers
relating to the case, we found that they were unavailable for
inspection.

[...]

Foster has been jailed in Australia, America and Britain for a series
of fraud offences involving bogus slimming products and is being
pursued by a number of creditors over his latest venture. He is a
fantasist and a proven liar.

He first came to prominence in Britain in 1986 when he dated former
Page Three girl Samantha Fox. She innocently promoted his Bai Lin
'slimming tea', which was exposed as a con.

[...]

We faxed a list of Foster's claims, and questions arising from them,
to Downing Street. A spokesman described some as 'ludicrous' - yet did
not deny that Cherie has met him, or that the Blairs had acquired the
flats, or that Foster had helped secure the deal. In a later briefing,
officials said there would be no response to these questions because
they were considered private.

[...]

Mrs Blair is claimed by the fraudster to have told him: 'As far as I
am concerned, Peter, you are a rehabilitated criminal and have served
your sentence.'

But his partners in the Trimit venture claim he owes them sums ranging
from GBP 25,000 to GBP 75,000.

[...]

Last night Cheshire police confirmed inquiries into Foster were
on-going but said the thrust of the investigation was being handled by
the Metropolitan Police and Scotland Yard.

[...]

Foster's Bai Lin venture collapsed with GBP 700,000 debts and in 1988
Foster went on trial at Warwick Crown Court on charges involving the
slimming tea.

The company was fined GBP 5,000 for breaching the Trades Descriptions
Act but Foster failed to turn up in court to be sentenced. Then in
1989 he served four months jail in Los Angeles for conspiracy to
commit grand theft after promoting another bogus slimming tea called
Cho Lo.

Foster returned to Britain in 1994 when he was brought back before
Warwick Crown Court and fined GBP 21,000 for the Bai Lin tea fraud.

The following year he was jailed for two years at Liverpool Crown
Court for another diet scam but after serving just nine months he fled
while on day release and was arrested in Australia. There he was
jailed for 18 months for threatening witnesses and managing a
corporation while insolvent.

In 2000 he was extradited from Australia to Britain to face five
charges of fraud relating to a 'thigh reduction' cream. He pleaded
guilty at St Albans Crown Court where a judge sentenced him to time
served on remand.

[...]

Copyright 2002 Associated Newspapers Ltd.