Fraud Newsletter 47 September 2020

October 5, 2020

Fraud Newsletter 47 – SEPTEMBER 2020


Search warrants: Public Interest Immunity and closed material procedure: principles set out in determining a PII claim in JR of a search warrant: R (Jordan) v Chief Constable Merseyside [2020] EWHC 2274 (Admin).


Effect of CROs on WFO applications: Criminal Restraint Orders might be so watertight as to remove the need for Wordwide Freezing Orders, but this was unlikely

– the SFO and civil claimants had different interests: London Capital & Finance v Thomson [2020] EWHC 2490 (Ch).


Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020, S.I. 2020 No. 991 in force on 6 Oct 20 and implementing MLD5 (EU) 2018/843 re due diligence, beneficial ownership and other confidential information.

 Functions of the Investigatory Powers Commissioner (Oversight of the Data Access Agreement between UK and USA and of functions exercisable under the Crime (Overseas Production Orders) Act 2019) Regulations 2020 S.I. 2020 No. 1009 in force 18 Sep 20 obliging the IPC to keep under view compliance with the UK-US data agreement.


Corporate Transparency and register reform: government response: BEIS: 18 Sep 20. BEIS Summary.

Cyber Security– A Thematic Review: SRA 2 Sep 20.

News Release summary: 2 Sep 20.

Confiscation of the Proceeds of Crime after conviction: Law Comm. Consultation Paper No. 249 17 Sep 20 and LC. Summary.

IP Crime and Enforcement Report: Imports of counterfeit & pirated goods accounted for 3% (£13.6B) of genuine imports: Intellectual Property Office: 2 Sep 20.

Opinion of the European Banking Authority on the future AML/CFT framework in the EU: EBA: 10 Sep 20 (a response to the Commission’s call for advice) and the EBA Report (10 Sep 20) on the same topic.

Virtual Assets Red Flag Indicators of ML and TF: Financial and Non-Financial Sectors: FATF Report: 14 Sep 20. Also on 14 Sep 20 3 related FATF summaries / handouts: (i) Financial and Non-Financial Sectors (ii) Virtual Asset Service Providers and (iii) Public Sector.

Harmful Online Communications: The Criminal Offences: Law Comm. Consultation Paper 248: 11 Sep 20 and LC Summary.

Report assessing EU member states’ compliance with MLD4 re trust and similar arrangements: Eur. Comm. COM (2020) 560: 16 Sep 20.

EU proposal on Markets in Crypto-Assets Regulation  amending 2019/1937: COM(2020) 593 final: 24 Sep 20.

MAR [Market Abuse Regulation} Review Report: 70- 156-2391: ESMA: 23 Sep 20: ESMA Summary

 The ‘Internet of Things’ helping to provide key evidence in criminal trials: speech by Max Hill QC at Westminster Policy Forum: 28 Sep 20.


COVID Fraud:

Boris Becker faces trial on charges of hiding assets (£1.2m cash, a Chelsea flat, shares and 2 German properties) from the Insolvency Service: EuroWeekly: 25 Sep 20.

The FinCEN Files: a cache of financial intelligence reports showing the role of global banks in $2T suspected money- laundering transactions 2000-2017 and 2,100 SARs filed with and leaked from US Financial Crimes Enforcement Network (FinCEN). The documents were shared by Buzzfeed News with the ICIJ and resulted in an 18 month investigation: ICJ: 20 Sep 20.

Credit Suisse spying scandal investigated by Swiss regulator: The Guardian: 2 Sep 20.

Cyprus Papers: Golden Visa Scheme are broken beyond repair, EU must act: Transparency International: 24 Aug 20. The Cyprus papers (an Al Jazeera investigative exposée) are a mass of leaked documents showing 2,500 wealthy individuals and family members secured Cypriot (and therefore EU) citizenship 2017-19 for investing over €2m. Applicants included 30 with pending criminal charges and 40 PEPs.

Wirecard Card Solutions (the UK co) announces plan for a solvent winding down: 28 Aug 20. Wirecard (the insolvent German co.) is subject to an investigation following allegations of €3.2B fraud, and a missing ex COO and a missing £1.9B in cash. A full enquiry has been launched by the Bundestag: MarketWatch: 2 Sep 20.


·      First    FCA    case    for    destroying    documents

(WhatsApp) in insider trading investigation: FCA 6 Sep

  1. D. subsequently acquitted: FT Adviser: 29 Sep 20.
·      FCA institutes criminal proceedings against three former employees of Redcentric Plc: FCA: 24 Sep 20.

Pensions Regulator obtains £286,852 confiscation order against former CEO of Yately Industries for the Disabled: TPR Press Release: 7 Sep 20.

FRC fine Deloitte £15m and £5.6m costs. Sanctions include severe reprimand and requirement to provide Root Cause Analysis for Misconduct re audit of Autonomy Corp Plc Jan 2009-June 2011: FRC 17 Sep 20.


·      SFO charge 3 former G4S executives and Justice Services (UL) Ltd with defrauding the MoJ: SFO: 8 Sep 20.

·      4 charged with fraud offences re Balli Group and Balli Steel investigation: SFO 29 Sep 20.

Forex trader pleads to multi-million pound investment scam: CPS: 4 Sep 20. – a £20.5m Ponzi scheme: International Adviser report: 7 Sep 20.