Fraud Newsletter 42 – April 2020
Admission of co-defendant’s plea in closed conspiracy: restatement of principles: Horne  EWCA Crim 487
Conspiracy: a useful restatement of some basic
principles: Johnson & Ors  EWCA 482.
Ivey affirmed and applicable to conspiracy to defraud: Barton and Booth  EWCA Crim 575 (a special 7 judge Court). . Note: if the means or objective is civilly, albeit not criminally unlawful, a jury who thinks what was agreed was dishonest can now convict despite the conspirators’ correct assertion and belief that what they intended did not amount to a substantive criminal offence. The court recognised that a number of issues usefully summarised by Professor David Ormerod and Karl Laird (UK SC Yearbook 2018 Vol 9 pp 1-24) still need to be addressed as cases are tried: Barton para 109.
UWO’s overturned on appeal: mere use of complex offshore structures is not without more sufficient to infer money laundering as lawful reasons can exist e.g. privacy, security and tax mitigation: NCA v Baker  EWHC 822 (Admin). The NCA are appealing: 8 Apr 20: NCA Press release.
SENTENCING AND CONFISCATION
Ghafoor  EWCA Crim 184  1 Cr.App.R.(S) 48: 4 years 11 month upheld for laundering 5 transactions worth £550k. Trial sentence based on 6 transactions/ £650k – made little difference. Still Cat 3. And not manifestly excessive.
Dines and Others:  EWCA 552: a pattegiamento (agreed disposal of a criminal case) is a conviction under Italian law and under POCA 20(02 (External Requests and Orders) Order 2005, Article 21(2) and subsequent confiscation orders may be enforced here.
Confiscation: Tainted Gift includes monies transferred from a joint account monies by a wife into her own account as the transfer was without consideration: Thakor  EWCA Crim 541 (Westlaw).
Certificate of Inadequacy granted where equity in only remaining unrealised asset fell far short of balance due: D warned of need to improve evidence when seeking variation before Crown Court: Ojebode  EWHC 923 (Admin).
BILLS, STATUTES & STATUTORY INSTRUMENTS
Nothing of moment
CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS
Corruption could cost lives in Latin America’s response to the Coronavirus: Transparency International: 31 Mar 20 pointing out emergency measures are bypassing the usual checks and balances causing serious corruption risks and setting out Public Procurement during States of Emergency: Minimum requirements to ensure the integrity of Contracts awarded during crises.
Coronavirus: changes to insolvency rules to help businesses: HoC Library Briefing Paper No. 8877, 31 Mar 20 – temporary suspension of wrongful trading under s214 Insolvency Act 1986 (to be retrospective as from 1 March 20) as per Chancellor’s statement of 25 Mar 20.
COVID-19: A perfect storm for the corrupt? 22 Apr 20 Transparency International
FCA’s Business Plan 2020/21: 9 Apr 20.
Conduct, 2020: Forensic Science Regulator: FSR-C 100 Issue 5: 22 Apr 20 replacing 2017 Codes.
NCA: National Plan 2020-21: 7 Apr 20
The Wolfsberg Group CBDDQ (Correspondence Banking Due Diligence Questionnaire) is being updated: WG 17 Apr 20.
Patchy Progress in setting up Beneficial Ownership Registers in the EU: Global Witness: 20 Mar 20.
Tesco’s DPA (10 April 17) fulfilled and now discontinued: SFO Press release: 10 Apr 20.
Wrongful Trading: temporary suspension of wrongful trading under s214 Insolvency Act 1986 to be retrospective as from 1 March 2020: Chancellor’s statement: 25 Mar 20.
Transparency International letter to IMF 8 Apr 20, requesting IMF maintain its commitments to stem corruption in respect of its emergency £1trillion COVID-19 relief funding.