Fraud Newsletter 55 – MAY 2021
S v J  EWHC 1422 (Admin) SFO application to discharge 2004 restraint order against UK/ Lebanese national after criminal investigation into advance fee fraud granted as proceedings had concluded. SFO application for a property freezing order also granted (Westlaw).
SFO v Litigation Capital Ltd  EWHC 1272 (Comm) SFO could recover fraudster’s assets as Jersey law did not recognise a constructive trust of Jersey immovable property.
SENTENCING AND CONFISCATION
AB  EWCA Crim 692: the correct approach to sentencing an offender following retrial to ensure sentence not of greater severity.
Channer  EWCA Crim 696 permissible to impose a custodial sentence and fine in certain circumstances (Westlaw).
Parczewska  EWCA Crim 750 lesser role in offence does not govern the position re confiscation (Westlaw).
BILLS, STATUTES & STATUTORY INSTRUMENTS
Queen’s Speech 2021 Electoral Integrity, Judicial Review, Online Safety, Police Crime Sentencing and Courts, Counter State Threats, and Telecommunications (Security) Bills.
Forensic Science Regulator Act 2021: provision for FS Regulator (in force on date to be determined).
National Security and Investment Act 2021 Investors acquiring 15% or more shares/ voting rights in company active in one of 17 ‘sensitive’ sectors must submit filing to Investment Security Unit. Non-compliance carries maximum of 2 years imprisonment.
Covert Human Intelligence Sources (Criminal Conduct) Act 2021 (Commencement and Transitional Provisions) Regulations 2021 SI 2021 No. 605 brings into force Covert Human Intelligence Sources (Criminal Conduct) Act 2021 amending Part 2 of RIPA 2000 to provide statutory power for law enforcement, intelligence services and specified public authorities to authorise criminal conduct by a CHIS. Must be on specified grounds and proportionate.
Finance Bill 2021: Commons report stage and third Commons reading Offences re fraudulent evasion and misstatements re plastic packaging tax.
CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS
Economic Crime Plan, 2019 to 2022: HO/HM Treasury/; updated 4 May 21
Economic Crime Plan Statement of Progress: HMG/UK Finance: 4 May 21. Better understanding of threats from AML & CTF; ‘fusion cell’ at NCEC; additional £63m for Home Office to tackle fraud; SARs reform proposed.
Computer Misuse Act 1990: Call for Information: HO: 11 May 21: to identify whether law enforcement agencies have necessary powers; how to strengthen response to cyber-crime and harmful activity.
Convictions in £36m boiler room fraud heard at Prospero House Elderly and inexperienced investors targeted and sold worthless Voluntary Emission Reduction (VERs) carbon credits: City AM 12 May 21.
London couple accused in Azerbaijan laundromat case may lose anonymity DJ rules that preventing the disclosure of their names would be disproportionate interference with principle of open justice: Evening Standard 28 May 21.
Sapien Capital fined for serious financial crime control failings re cum-ex trading: risk of facilitating fraudulent trading and ML: FCA 6 May 21
FCA launches formal probe into Greensill’s UK operations: City A.M. 11 May 21.
Charges re fraudulent trading and carrying on regulated activities without authorisation re Richmond Associates: FCA 20 May 21.
SFO closes investigation into individuals as part of Airbus bribery case Follows global settlement with Airbus to pay £3.6bn: City A.M. 4 May 21.
Former Serco executive calls for abolition of SFO Acquitted defendant Simon Marshall claims that the SFO worked “backwards in trying to retrofit a case against me”: City A.M. 10 May 21.
SFO Business Plan for 2021-2022: priorities include high quality case progression ‘at pace’; victim and witness strategy; enhancing recovery of proceeds of crime; intelligence gathering in international corruption, investment fraud and cryptocurrency: 13 May 21.
SFO confirms investigation into Gupta Family Group Alliance including its arrangements with Greensill Capital UK Ltd: 14 May 21.
Former SBM Offshore lawyer alleged to have exposed corruption to be extradited to Monaco Croatian Supreme Court holds Jonathan Taylor should be extradited: BBC 18 May 21.
GPT Special Project Management trial of executives to take place in May 2020: 2 defendants pleaded not guilty to corruption charges linked to a military contract with Saudi Arabia: Law 360 27 May 21.
Three individuals charged in £14m pension scam: 245 alleged victims. One has pleaded guilty: others to be tried in June 2022: Top Class Actions 11 May 21.
Former trader convicted of Libor manipulation to join corporate spy agency Red Mist Tom Hayes was sentenced to 11 years for Libor manipulation and released in January: Financial News 24 May 21.
ENRC High Court claim against Dechert and SFO that a partner at Dechert representing ENRC used scaremongering tactics on his client, set up unauthorised meetings with the SFO and leaked confidential and privileged information: Financial Times 24 May 21.
UK Government has failed to fully implement 7 out of 12 anti-corruption recommendations from Council of Europe Anti-Corruption Body i.e. imposition of post-employment restrictions on police; remit/ powers of independent adviser on Ministers’ interests & remit/ powers of body advising on business appointments of former ministers and civil servants (ACoBA). Council of Europe 28 May 21.
EU & ABROAD:
US DoJ opens investigation into Bombardier’s sales of jets to Garuda Indonesia (also subject to SFO investigation): Simple Flying 6 May 21.
EU Commissioner speech on AML and CTF action plan reforms new AML authority at EU level; new legislative package; EU wide upper limit for cash purchases of EUR 10,000; populating beneficial ownership registers: European Commission 17 May 21.
New European Public Prosecutor Office (EPPO) prepares to tackle €800bn pandemic recovery fund corruption EPPO launches on 1 June and expects legal challenges, intimidation and resource pressures: Financial Times 19 May 21.