Fraud Newsletter No. 73 November 2022

• Cases

  Abuse of process – using evidence for civil
  purpose not stated in MLA request –claim not
  struck out but material inadmissible: FCA v
  Papadimitrakopoulos [2022] EWHC] 2792 (Ch)

  Third parties have no standing to seek
  compensation order: such orders only to be used in
  clear cut cases: Nigeria v SFO (re Glencore Energy)
  [2022] EWCR 2

  Anonymity given to individuals to point of
  charge: SFO v Glencore Energy UK [2022] EWCR 1
  applying Bloomberg v ZXC [2022] UKSC 5.

• Sentencing & Confiscation

  Test to be applied on setting aside AFO (account
  freezing order under s 303Z4 POCA: R. (NCA) v
  Westminster JJ [2022] EWHC 2631 (Admin)

  Prohibition on piercing the corporate veil not
  applicable where director is sentenced for
  conniving in the company’s offending: Anderson
  l2022] EWCA Crim 1465.

  SFO v Glencore Energy UK: (Sentencing Remarks –
  first corporate s1. Bribery plea): £93 compensation;
  £182m fines: £4.5m SFO costs.

• Bills, Statutes & SIs

  Fraud and the Justice System Report – Correction
  by the Sentencing C’tee: 23 Nov 22
  Progress combatting fraud: NAO/Home
  Off. HC654: 15 Nov 22. Summary.

  Bill of Rights back in ‘weeks’: Law Soc. Gazette: 7
  Nov 22.

  Crime (International Co-operation) Act 2003
  (Designation of Participating Countries)

  (England, Wales and Northern Ireland) Order
  2022 1922 SI No 1146: participating countries now
  include Georgia, Liechtenstein, Luxembourg,
  Moldova, Switzerland (now fully designated) and
  Turkey.

• Consultations, guidance, circulars and reports

  When did we simply accept fraud as an inevitable
  part of our modern lives?: Comment: CityA.M. 30
  Nov.22

  Understanding Risks and taking action for money
  service business: HHRC Guidance updated 22 Nov 22.

  Progress Combatting Fraud: National Audit Office
  Report: 15 Nov 22. Increased threat from fraud but
  falling number of charges/ summons. Significant gaps
  in Home Office understanding of threat from fraud.

  High Risk Third Countries: HM Treasury update: 14
  Nov 22.

  Fighting Fraud: Breaking the Chain: Fraud Act 2006
  & Digital Fraud C’tee: HL Paper 87: 12 Nov 22. Fraud
  accounts for 41% of all crime but receives 1% of law
  enforcement funding. Fraud organisational policing
  structures are complex and confusing: decrease in
  prosecution. 6 key recommendations made.

  OFSI Annual Review: Apr 21-Aug 22 deals
  extensively with Russia: £18.4B assets frozen since
  invasion of Ukraine etc.

  Confiscation of the proceeds of crime after
  conviction: a final report:Law Com: HC 828: 8 Nov
  22. Summary

  Ransomware inquiry launched: Joint C’tee on the
  National Security Strategy: 31 Oct 22.

  AML and CT Financing: Annual Report 21/22: BSB
  27 Oct 22

  The cost of complacency: illicit finance and the
  war in Ukraine: Gov. Response to C’tee’s 2nd
  Report: For. Affairs C’tee: HC 688: 26 Oct 22.

• News

  CPS:

  Met Police passes file on cash-for-honours
  allegations to CPS: re allegation a former aide to King
  Charles offered to help secure a knighthood for a Saudi
  donor to one of the King’s charities: BBC News: 20 Nov 22

   

  FCA:

  Court blocks ‘Essex Boys’ traders bid to overturn
  City watchdogs’s decision to hand over trading
  records re $700m oil futures profits: FCA is assisting US
  CFTC (Commodities Futures Trading Commission): City
  A.M.: 3 Nov 22: FCA press release

  FCA prosecutes 5 people over alleged 1.2m
  investment fraud: FT Adviser: 1 Nov 22

   

  HMRC:

  £4.5bn lost to fraud in three COVID schemes as
  Rishi Sunak’s Eat Out to Help Out scheme recorded
  9.5% rate of fraud: Sky News: 30 Nov. 22

   

  NCA:

  NCA secures £50m identified by Barclays as
  proceeds of crime in first civil recovery from unnamed
  a/c holders: 25 Nov 22

• SFO

  Update on progress in delivering the
  recommendations in Sir David Calvert-Smith’s
  Independent Review into the SFO’s handling of the
  Unaoil Case: A-G: 29 Nov 22. 9 of 11 recommendations
  implemented so far.

  Lisa Osofsky to step down as SFO director in
  August 2023: City A.M. 9 Nov 22

  Mining giant Glencore flew cash bribes to Africa
  via private jet: Guardian 2 Nov 22. Glencore to pay
  record £281m for bribery in Africa including £93m
  compensation: Guardian: SFO Press Release 3 Nov 22.
  Sentencing Remarks of Mr Justice Fraser.

  Sheikh Mansour’s firm weighs in to Glencore legal
  battle: This is Money: 5 Nov 22

• Home

  Former Premier League star in court charged over
  ‘£15m scam’: Independent: 30 Nov 22.

  Operation Elaborate (UK’s largest cyber fraud
  operation) closes iSpoof website – responsible for at
  least 10m spoof calls: £48m thefts. 59k suspects: 70k
  known and possibly 200k UK victims: 100 arrests (mainly
  London). iSpoof offered access to a server for criminals
  posing as bank employees to make anonymous calls:
  BBC News and Guardian 24 Nov 22.

  CCRC invite new submission from Tom Hayes
  (Libor) following successful appeal of US convictions of
  Deutsche Bank traders: fn 22 Nov 22. Exonerated
  trader sues Deutsche Bank over Libor rigging
  allegations: FT: 18 Nov 22

  HBOS fraud review setback is a ‘scandal’ –
  significant delays in concluding interviews with a
  number of important witnesses.” Review to run into
  early next year. Times (paywall): 3 Nov 22.

  Companies House is dysfunctional and facilitating
  fraud, MPs told: Guardian 8 Nov 22

  KPMG settles lawsuit over Quindell audit
  negligence claim: City A.M: 14 Nov 22

  Tory peer Michelle Mone secretly received £29m from
  ‘VIP’ lane PPE firm: Guardian: 23 Nov 22

  HSBC froze accounts linked to Tory peer Michelle Mone
  during corruption probe:F.T. 25 Nov 22

• EU & Abroad

  FTX

  Nearly $500M Stolen From FTX Hours After
  Bankruptcy Filing: Crypto News: 14 Nov 22

  At least $1bn in investor assets missing after FTX
  collapse – reports: Guardian 12 Nov 22.

  Collapse of FTX cryptocurrency exchange under
  scrutiny by federal authorities: Guardian 10 Nov 22

  Exclusive: Behind FTX’s fall, battling billionaires
  and a failed bid to save crypto{Reuters: 10 Nov 22.

  Cardinal Becciu and the Twists and Turns of the
  Vatican Finance Trial: National Catholic Reg: 30 Nov 22.

  Operation Admiral: EPPO uncovers organised
  crime groups responsible for VAT fraud estimated
  at €2.2 B: EPPO: 29 Nov 22

  Theranos founder to more than 11 years for
  defrauding investors: Guardian: 18 Nov 22. Theranos once valued at more than $9B.

  Eurojust coordinates action against massive
  investment fraud with hundreds of thousands
  of victims worldwide: Eurojust: 10 Nov 22.

  Danske Bank ex-CEO cleared in $332m investor
  lawsuit over Estonia case re €220b suspicious
  fund flows from Russia etc. in 2018: Reuters: 8 Nov 22.

  US Court drops LIBOR rate-rigging charges
  against ex-UBS trader Tom Hayes: Guardian 31 Oct 22.

  2017 DoJ Indictment against Hayes and Darrin:
  DoJ “submits that dismissal with prejudice serves the interests of justice”

  Insurance broker Arthur J Gallagher
  subpoenaed by US authorities over business
  with Ecuadorian firms: City A.M: 7 Nov 22.

  Airbus settles old corruption cases with French
  prosecutor: Air Insight: 25 Nov. 22

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