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image captionStephen Pigott appeared at Grimsby Crown Court via video link
A music producer convicted of being part of a £40m VAT fraud may escape having to repay almost £2.6m due to an admin error , a court has heard.
Stephen Pigott, 57, was jailed in 2005 for nine years and in 2007 was ordered to pay back his profits from the fraud.
However, at a court hearing on Friday it emerged the confiscation order was defective , having seemingly been made under the wrong legislation .
Judge Peter Kelson QC said it was a scandal and demanded further inquiry.
The producer, who has worked with artists including Celine Dion, Rod Stewart and the Pet Shop Boys, was later ordered to repay nearly £1.5m by way of a confiscation order.