Fraud Newsletter No. 78 April 2023

June 12, 2023
Cases

Al Sadeq v Dechert LLP [2023] EWHC 795 (KB) extends Litigation Privilege to the victims of fraud/crime who are not parties to litigation but have a real interest in seeing that a fraud is successfully criminally prosecuted: §212.

Sentencing & Confiscation

Botting [2023] EWCA Crim 441 (Westlaw): value of cheques converted to gold and the gold itself available for confiscation calculation as neither held on trust for criminal gang and D had real interest therein implying control and disposition.

Bills, Statutes & SIs

New crackdown on fraud introduced: Failure to prevent fraud offence to be included in Economic Crime and Corporate Transparency Bill: Home Off: 11 Apr 23. Factsheet: failure to prevent fraud offence: HMG: Updated 11 Apr 23.

Consultations, guidance, circulars and reports

DBEIS: Annual Report and Accounts 2021-22: HoC Public Accounts C’tee: HC 1254: 26 Apr 23. Highly critical report re COVID: of £2.2B lost through fraud etc, only £10m recovered etc. “A laissez faire approach to fraud”

Chasing Money: Katherine Freeland: Law Soc Gaz: 21 Apr 23.

Anti-Bribery and Corruption Compliance Programme Guidance: Wolfsberg Group: updated 17 Apr 23; Executive Summary

Progress Combatting Fraud: HoC Pub. A/c Com’tee: HC 40: 31 Mar 23

Pension Scams: HoC Library Research Briefing: 29 Mar 2: Summary

City of London Law Society: the Future of the SFO: Apr 23.

News

FCA:
WANdisco reveals fraud investigation findings: false sales bookings of £115m from one senior sales employee BusinessCloud: 28 Apr 23. Apparently subject to FCA investigation.

Financial watchdog puts banks on alert in fight against money laundering via the Post Office: 24 Apr 23 – series of measures to reduce risks of ML via Post Offices. See also Cash-Based money laundering 24 Apr 23.

FCA flooded with whistleblower reports amid ML crackdown: Fin. News: 17 Apr 23.

3 convicted of investment fraud and sentenced to a total of 24½ years – cold calling re 120 investors and £1.2m: 6 Apr. 23

4 individuals face fraud charges re £1.4m re investment scheme: 5 Apr 23

Business Plan 2023/24: 5 Apr 23. Funding requirements jumps to £684.2m (8.5% increase).

FCA sets clear plan for the next 12 months including “Reducing and preventing financial crime”: – continues to develop tools to find scam websites: 5 Apr 23.

Insolvency Service:

London businessman convicted for Bounce Back Loan fraud: 28 Apr 23

NCA:

• Fraudster used stolen identities to con thousands from victims: 13 Apr 23.

• 3 charged over online banking scam – running a website enabling subversion of banking anti-fraud measures.13 Apr 23.

• Former Cambridge don who defrauded Government energy grants repays more than £1m: 12 Apr 23.

Notorious criminal marketplace selling victim identities taken down in international operation: 5 Apr 23. Genesis Market sold log-in details, IP addresses and other data that made up digital fingerprints: raids in 17 countries: BBC News: 5 Apr 23

Joint International Crime Centre launches: 3 Apr 23.

SFO:

Glencore Staff Bribery Charges Delayed Until Later This Year: Bloomberg: 19 Apr 23.

SFO intervention delays decision on trader’s Libor rigging appeal: Times (paywall) 10 Apr 23: SFO to make representations to CCRC.

Sentences totalling over 13 years for executives behind $500m bank fraud: 4 Apr 23.

Home

Former Spalding United football club chairman convicted of £4m fraud Ponzi scheme: BBC News: 27 Apr 23.

Alex Chalk replaces Raab as Justice Minister: Reuters: 21 Apr 23.

Autonomy founder Mike Lynch loses appeal against extradition to US re allegation he duped Hewlett-Packard into overpaying in its £8.2B deal for his firm: Guardian 21 Apr 23.

Fraudster pleads guilty to £100m iSpoof scam: BBC News: 20 Apr 23.

Tough action taken against company directors for COVID-19 financial abuse: 459 directors disqualified 2022-23 for abuse of COVID support schemes and 6 prosecuted: Insolv. Serv. 18 Apr 23.

Preston mastermind of one of UK’s largest tax frauds convicted in absence re £97m carousel fraud and counterfeit fake designer clothing: 10 year investigation: BBC News: 15 Apr 23.

On the hunt for the businessmen behind a billion-dollar scam: global fraudulent trading network investigated: BBC News: 12 Apr 23.

Police arrest SNP Treasurer in finance probe: BBC News: 18 Apr 23. Nicola Sturgeon’s husband Peter Murrell arrested in SNP finance probe: BBC News: 5 Apr 23.

Man who made £1.2m from fake vinyl records caught out by Clash fan: BBC News 5 Apr 23

EU & Abroad

Fugitive CEO Ordered to Pay $3.4 B in Record Fraud Involving Bitcoin: Bloomberg: 28 Apr 23.

OLAF probes potential fraud involving EU recovery funds: Politico: 28 Apr 23

British American Tobacco to pay $635m for North Korea sanctions breaches: BBC: 25 Apr 23.

Charges against former Warburg boss approved re tax fraud charges re €280m cum-ex: Time. News 14 Apr 23.

Police seize fake Spanish masters paintings on sale for $84m: CNN Style: 13 Apr 23.

• Donald Trump charged with 34 offences of falsifying records to conceal crime: Indictment and Statement of Facts: 4 Apr 23.

EY fined, banned from some audits in Germany over Wirecard scandal: Reuters: 3 Apr 23,