Fraud Newsletter 35 – September 2019

October 3, 2019

Fraud Newsletter 35 – September 2019

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[su_spoiler title=”CASES” open=”yes” style=”default” icon=”plus” anchor=”” class=””]

D [2019] EWCA Crim 209 (failing to disclose information – s3 Fraud Act) is now reported at [2019] 2 Cr.App.R. 15.

Fraudulent transfers into a bank account and s329 POCA. Property must be criminal property before the transfer: Loizou [2005] Crim 1579, [2005] 2 Cr.App.R. 2 and GH [2015] UKSC 24, [2005] 2 Cr.App.R. 37. Accordingly, monies transferred into an account by the true owner who had been induced by fraud to make a payment, had not been “acquired” by the account holder under s329 POCA. Although not “acquired”, once in the account it became criminal property: Haque [2019] EWCA Crim 1028

Fraudulent removal of property in anticipation of winding up (s206(1)(b)  Insolvency Act 1986) must occur within 12 months before start of winding up: Druzyc: [2019] EWCA Crim 1076, [2019] Lloyds Rep F.C. 375 (Westlaw).

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[su_spoiler title=”SENTENCING AND CONFISCATION” open=”no” style=”default” icon=”plus” anchor=”” class=””]

Effect of medical mitigation on fraudulent evasion of VAT: Akbar [2019] EWCA Crim 937, [2019] Crim.L.R. 891 (Westlaw).

Ownership of real property abroad: Legal ownership is determined by local law: beneficial ownership by English law: Thayaparan [2019] EWCA Crim 247, [2019] Lloyds Rep 369 (Westlaw).

Money laundering Sentencing Guidelines: a natural reading of the guidelines means is that harm B takes the harm A assessment up a category, so that if one is in 6C one moves up to 5C, not 6B: Evans, Jackson and Johnstone [2019] EWCA Crim 606, [2019] 2 Cr. App. R. (S.) 35

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[su_spoiler title=”BILLS, STATUTES & STATUTORY INSTRUMENTS” open=”no” style=”default” icon=”plus” anchor=”” class=””]

Nothing of moment

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[su_spoiler title=”CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS” open=”no” style=”default” icon=”plus” anchor=”” class=””]

Asset Recovery Statistical Bulletin 2013/14 – 2018/19: Home Office: 13 Sep 19 and Amounts Recovered Data.  2013/14: £179m recovered; 2018/19 £217m recovered.

Joint statement on the launch of EU-U.S. negotiations to facilitate access to electronic evidence: European Commission 26 Sep 19.

JMLSG (Joint Money Laundering Steering Group) Guidance updated – section 4 (credit unions), sector 12 (asset finance) and sector 20 (brokerage services to funds) amended. Treasury approval received 25 Sep 19: JMLSG news

How the CMA investigates Cartels: Ashley Wakeman, Principal investigation Officer, CMA: 6 Sep 19.

List of businesses for 2019-2020 that have not complies with 2017 ML Regs. as at 3 Sep 19.  Largest fine £7.83m. All others below £4k.

NCA investigation into suspected EU referendum offences: NCA Public statement: no evidence of criminality re loans made to Leave organisations:  24 Sep 19

Spoofing the Market: a comparison of UKS and UK law and enforcement: Stephens, Dedman and Nettsheim, King & Spalding 4 Jun 19.  

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[su_spoiler title=”NEWS” open=”no” style=”default” icon=”plus” anchor=”” class=””]

2 British bankers conspire to siphon €60 B in German Cum-Ex fraud: actual losses estimated at estimated losses €31.8 B (Germany); €17B + (France) €4.5 B (Italy);  €1.7 B (Denmark); €201m (Belgium): Guardian 21 Sep 19.

Ex-Goldman Sachs investment banker ordered to pay £7.3m confiscation for Ibori laundering: Independent 6 Sep 19

Google pays €945m in French tax fraud settlement: BBC News 12 Sep 19

Action Fraud accused of failing to record cases of identity theft as fraud: The Times 18 Sep 19.For published figures see Additional tables on fraud and cybercrime Office of National Statistics website. Action Fraud News.

 FCA:  Operation Tabernula (insider dealing) money launderer (£1.5m) who absconded sentenced to 5years 8 months: 3 Sep 19;  the fight against skimmers and scammers: speech by Charles Randell, (Chairman) at Cambridge Symposium on Economic Crime, 4 Sep 19;    first prosecution under FSMA2000 for destroying documents knowing or suspecting they were relevant to an investigation: 6 Sep 19;

S-G speech on UK’s Economic Crime Plan: Cambridge Symposium on Economic Crime: 2 Sep 19

Global Corruption Barometer – Latin America and the Caribbean: Citizens’ Views and Experiences of Corruption: Transparency International Report: 23 Sep 19

SFO:  Speeches at Cambridge Symposium on Economic Crime by Sara Lawson QC (General Counsel) and Lisa Osofsky (Director): 2 and 2 Sep 19; £7.3m confiscation orders for Saunders Electrical fraudsters: 10 Sep 19; Woodhead jailed for over 9 years after 15 years on the run: 18 Sep 19.

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