Fraud Newsletter No. 73 November 2022

December 5, 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