Fraud Newsletter 37 – November 2019

December 3, 2019

Fraud Newsletter 37 – November 2019

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Legal Personality and Jurisdiction: the Bank was not a legal person under Polish law. However, it was sufficient that it was part of a larger organisation (a parent bank) which did have a legal personality and which could assert its rights under Polish law: Centraal Justitieel Incassobureau, Ministerie van Veiligheid en Bank BGZ BNP Paribas S.A. w Gdańsku/a>[2019] EUECJ C-183/18_O (Opinion – AG Pikamae).


5th DPA – Serco Geographix approved by William Davis J: fraud x3 and false accounting x 2 re true extent of profits of Serco Ltd and its MOJ electronic monitoring contract. £19.2 financial penalty and

£3.7m SFO costs (£70m compensation to MoJ already paid). SFO news summary: 4 Jul 19. SFO v Serco Geografix Ltd: [2019] Lloyd’s Rep FC 518.

Disproportionality – confiscation. As a general principle confiscation is not disproportionate because D would or might have accrued valuable rights if she had acted honestly (stealing own pension contributions) Whittle [2019] EWCA Crim 1897. Shabir [2008]

EWCA Crim 1809, [2009] 1 Cr.App.R.(S) 84 distinguished.

Fraud – dying Defendant. Guilty plea by accounts and office clerk. Now diagnosed with stage 4 bowel cancer and undergoing palliative chemotherapy; 2 young children; life expectancy 12 – 15 months. 6 year fraud by raising false invoices: £565k loss to a family owned business; result – key staff members made redundant.

Usual starting point 5 years less discount for plea, character, remorse and children. Exceptional circumstances here – 18 months: Newsome (Chantel) [2019] EWCA Crim 921, [2019] 2 Cr. App. R. (S.) 49.


Nothing of moment


At Your Service: Investigating how UK businesses and institutions help corrupt individuals and regimes launder their money and reputations: Transparency International Report Oct 19 and Bibliography.

Consultative Document: Introduction of guidelines on interaction and cooperation between prudential and AML/CFT supervision: BSBS (Basel Committee on Banking Supervision) Bank for International Settlements: 8 Nov 19. Summary.

Economic Crime: Consumer View: HoC Treasury Committee: 1 Nov 19.

EU Opinion on Electronic Evidence in Criminal Matters: European Data Protection Supervisor: Press Release: 6 Nov 19.

Facing future corruption challenges – trends of the next decade 29 Oct 19 and Future anti-corruption trends – 4 reasons to be optimistic: 7 Nov 19: Transparency International.

FATF – speech on FATF Strategic Review: David Lewis, FATF Ex. Sec. 18 Nov 19.

Human Right and Criminal Prosecutions: General Principles: CPS Legal Guidance: updated 18 Sep 19.

 Legal Statement on the Status of Cryptoassets and Smart Contracts: LawTech Delivery Panel 18 Nov 19. Legal Statement Launch speech by Sir Geoffrey Voss.

CO seeks views on application for powers under POCA: Consultation: Proceeds of Crime Act ICO 8 Nov 19: consultation to close on 6 Dec 19: ICO Summary.

SAR Glossary Codes and Reporting Routes: NCA 1 Nov 19

SARs Annual Report 2019: NCA 5 Nov 19

SFO: Alstom fined £15m for bribery over Tunisian Metro and £ 1.4m costs following earlier conviction (April 2018) for conspiring to corruptly obtain an €79.9 contract: 25 Nov 19. Confiscation orders for $413k for 2 men in 17m solar panel fraud: 27 Nov 19 – (conviction 29 Aug 18)

 US v. Connolly and the Risk That “Outsourced” Criminal Investigations Might Violate Foreign Blocking Statutes: Frederick TY Davis: Compliance & Enforcement: NYUSL: 6 Nov 19.


Cyber-crime site selling hacking tool taken down following international operation: 14.5k versions of IM RAT (Imminent Monitor Remote Trojan) sold. IM RAT allows hackers full access to infected computers. NCA 29 Nov 19

Fraud Issues in Main Elections Manifestos: Conservatives – new national cybercrime force; strengthen NCA to tackle threats posed by fraud (p 19): Labour – strengthened response to economic crime; new national strategies on cybercrime and fraud (p 45); Lib Demsnew Online Crime Agency to tackle activity such as personal fraud (p 69-70).

Watch out for fake emails claiming to be Action Fraud: Action Fraud 7 Nov 19.

Law Society Warning Notice – Compliance with the money laundering regulations – firm risk assessment updated 29 Oct 19. Too many firms do not have risk assessment in place.

Lord Hain alleges HSBC and Standard Chartered enabled corruption in South Africa under Zuma: BBC News 18 Nov. 19.

NCA: £8.1m proceeds of unlawful conduct recovered in civil recovery and tax investigation: 4 Nov 19.

PRA: Citigroup Global Markets fined £44m re UK operations for failures of regulatory reporting governance and controls: Final Notice: 26 Nov 19.

SFO: Alstom fined £15m for bribery over Tunisian Metro and £ 1.4m costs following earlier conviction (April 2018) for conspiring to corruptly obtain an €79.9 contract: 25 Nov 19. Confiscation orders for $413k for 2 men in 17m solar panel fraud: 27 Nov 19 – (conviction 29 Aug 18)