Fraud Newsletter 63 – January 2022

CASES

Nothing of note

SENTENCING AND CONFISCATION

Realisable assets include net salary and occupational pensions (gross cash equivalent transfer value): Asplin [2022] EWCA 9 (conspiracy to defraud employers).

Andrewes [2020] EWCA 1055 (Westlaw): D employed as a result of misleading statements re qualifications etc. but gave competent full value service – confiscation based on total earnings: appeal allowed as outcome disproportionate: leave granted to SC: 16 Nov 21.

BILLS, STATUTES & STATUTORY INSTRUMENTS

Judicial Review and Courts Bill at Report stage: contains measures to realise potential of CVP (see Fact Sheet pp 1, and 2-3). House of Commons Research Briefing: 12 Oct 21

Draft Money Laundering and Terrorist Financing (Amendment) Regulations 2022 come into force on 9 Mar 22 amending the ML, TF and Transfer of Funds (Information on the Payer) Regs 2017.

National Security and Investments Act 2021: in force 4 Jan 22. Establishes regime for government intervention in acquisitions to protect national interest.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021: s2 amends s6 Company Directors Disqualification Act 1986 to allow disqualification of directors who dissolve companies to avoid paying their liabilities.

CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS

Nature of crime: fraud and computer misuse: (for y/e Mar 21) Office for National Statistics: 27 Jan 22. [Investment fraud jumped 42%]
Corruption Perceptions Index 2021: Transparency International: 25 Jan 22

Closing the UK’s economic crime enforcement gap: Proposals for boosting resources for UK law enforcement to fight economic crime: Spotlight on Corruption: 24 Jan 22. (contains useful review of fraud data) Executive Summary

2021 Economic Crime Summary: BDO UK: 20 Jan 22

2022 cyber security incentives and regulation review: DDCMS: 19 Jan 22.

Framework for transparent and accountable asset return: Home Office: 13 Jan 22: policy and principles providing transparent insight into government decision making on returning proceeds of crime: Press Summary

2020 Enforcement of the Anti-Bribery Convention: Investigations, Proceedings, and Sanctions: OECD WGB: 23 Dec 21.

The Challenges and Opportunities Created by Digital Evidence in Criminal Cases: Speech by Dame Victoria Sharp published 5 Jan 22.

Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime etc: Thematic Review re Corporate Liability: CoE: 20 Jan 22 (shortfalls etc of UK corporate identification principles).

Evidence of Attorney General to Justice Committee on 25 Jan 22. Key parts dealing with SFO budget, relationship with Director of SFO, Unaoil judgment and AG’s review and Economic Crime Bill are at [15:10 to 15:26]

NEWS

FCA:

• THG hands over City ‘conspiracy’ dossier to financial watchdog: Retail Gazette: 10 Jan 22.
• Criminal proceedings commenced re Collateral (UK) (7 Jan 21) re unregulated peer-to-peer lending misrepresentation and alleged illegal diversion of funds: The Times: 8 Jan 22.

SFO:

• 2021 SFO Enforcement Round-Up: Individuals and Corporates: Mischon de Reya: 19 Jan 22.
• What to expect from the SFO in 2022? Mischon de Reya: 19 Jan 22.

HOME:

  
•  Court approves £5.6m seizure over money laundering: BBC  31 Jan 22;  Laundered millions linked to Azeri politician forfeited: NCA 31 Jan 22. 
• Court approves £5.6m seizure over money laundering: BBC 31 Jan 22;  Laundered millions linked to Azeri politician forfeited: NCA 31 Jan 22. 
• Mike Lynch’s extradition to US on criminal fraud charges approved: BBC News: 29 Jan 22. HP Wins Huge Fraud Case Against Autonomy’s Mike Lynch: Wired: 28 Jan 22 (High Court ruling that Autonomy executives had fraudulently boosted Autonomy’s reported earnings and value re $11B sale to HP). Current reports that both decisions are to be challenged: Sunday Times 30 Jan 22.
• Doubts expressed as to extent of BBLS fraud: Sunday Times: 30 Jan 22. Conservative minister resigns in anger over Covid fraud: BBC News: 24 Jan 22. Treasury writes off £4.3B in Covid payments lost to fraud: The Times 17 Jan 22.
• Bans for two directors who abused Bounce Back Loan scheme: (10 and 11 years) The Insolvency Service: 20 Jan 22 

• LabVPN takedown: UK server of criminal network offline: NCA: 18 Jan 22
• Prolific romance fraudster jailed as CPS issue warning: CPS 14 Jan 22
• Largest darknet stolen credit card site closes: UniCC thanked (criminal) clients for their business, but closing for age and health reasons. Police estimate $358m receipts since 2013): BBC 14 Jan 22.
• Tax cheating barrister jailed for £100k VAT fraud: SomersetLive 14 Jan 22.
• UK Finance warns SMEs of increased risk of targeted scams re remote working: 12 Jan 22. £59.2m lost in 1^st 6 months 2021.
• Smith & Nephew India [SEC] investigation asks for documents: The Times 10 Jan 22.
• Starling Bank shuns Facebook over scam ads: UKTN: 7 Jan 22.
• Mischon del Reya hit with record fine (£232.5k) from SRA for AML failings: 6 Jan 22.
• Sir David Green CB QC appointed new Chair of Fraud Advisory Panel: ICAEW 6 Jan 22.
• Cryptocurrency crime hit all time high in 2021: Reuters 6 Jan 22.
• Crack down on directors who dissolve companies to evade debts: The Insolvency Service/DBEIS/DLU: 16 Dec 21 (for legislation see Bills, Statutes etc above).
• Government denies claims it has scrapped crucial economic crimes bill: Guardian 26 Jan 22.

EU & ABROAD:

• Mitigating systemic cyber risk. ESRB (European Systemic Risk Board) Recommendation and Press Release summary: 27 Jan 22. 

• Ex-Deutsche Bank Traders’ Libor Convictions Tossed on Appeal: Bloomberg: 27 Jan 22.
• Y. Attorney General Outlines Pattern of Possible Fraud at Trump Business: NY Times 18 Jan 22 re “misleading” statements about the value of at least 6 Trump properties: A-G’s Full Report (NYSCEF Doc No. 358 filed 18 Jan 22).
• Elizabeth Holmes: Theranos founder convicted of fraud: BBC News 5 Jan 22. Likely to be sentenced in September. Former partner Sunny Balwani to be tried next month.
• EBA alerts on the detrimental impact of unwarranted de-risking and ineffective management of money laundering and terrorist financing risks: EBA 5 Jan 22.
• Bankers rate “rigging” not criminal says US: BBC 28 Jan 22.