Fraud Newsletter No. 80 June 2023

July 4, 2023
Cases

Re Dishonesty: Floreat Investment Management Ltd v Churchill [2023] EWCA Civ 440: interesting factual analysis overturning trial judge’s finding of dishonesty (§64 et seq). Objective dishonesty involves a serious lapse from ordinary and proper standards which differs from ill-advised conduct.

Sentencing & Confiscation

JR of discharge of earlier order not to identify M (neither a party nor witness) re NCA asset forfeiture: criteria of be applied. R (Marandi) v Westminster Mag. Court [2023] EWHC 587 (Admin)

Ahmet v Tatum [2023] EWHC 1492 (Ch) (Westlaw) POCA provides a complete and exhaustive code for resolution of disputed property rights re restraint and confiscation. 3rd party claim of beneficial interest struck out for abuse.

Sentencing data-driven cybercrime. How data crime with cascading effects is tackled by UK courts: Porcedda: Comp Law & Security Review (2023) Vol 48

Bills, Statutes & SIs

Crackdown on criminals silencing critics to be added to Economic Crime Bill (MoJ: 13 Jun 23) effectively implementing recommendations made by the Foreign Policy Centre and ARTICLE 19’s report London Calling (25 Apr 22) on SLAPPS (strategic lawsuits against public participation).

Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) Order 2023 SI. 612 in force 8 June 23 (re regulation of certain cryptoasset financial promotions). Explanatory Memo.

Consultations, guidance, circulars and reports

Proceeds of crime – Guidance: SRA 30 Jun 23.

Proceeds of Crime – Guidance “to help understand you obligations and how to comply”: NCA: 28 Jun 23.

Ministerial approval of JMLSG Guidance: 27 Jun 23: all available at JMLSG Revisions.

Reform of the AML and CTF Supervisory Regime: Consultation: HM Treasury 30 Jun 23.

Cybersecurity in the UK: HoC Library Research briefing CBP 9821: 22 Jun 23: Summary

Financial Ombudsman Service warns of increase in ‘hybrid’ scams: FOS: 28 Jun 23

Money Laundering Advisory Notice: High Risk Third Countries: HM Treasury: updated 23 Jun 23

Register of Overseas Entities: approach to enforcement: Companies House: 21 Jun 23.

Update: How Ofcom is preparing to regulate online safety: 15 Jun 23.

Government plans to modernise the corporate identification doctrine by adding to the Economic Crime and Corporate Transparency Bill -see More action to fight fraud, bribery and other economic crime: HO/ DBEIS/ CPS/SFO 15 Jun 23.

HMRC Fraud Investigation Service – Code of Practice 9 re civil investigations for suspected fraud: HMRC: 14 Ju 23. Cf HMRC criminal investigation policy (13 Jul 21) and HMRC criminal investigation powers and safeguards (13 July 21).

Fighting authorised push payment fraud: a new reimbursement requirement: PSR (Payment Systems Regulator) 7 Jun 23. Summary

Guidance on submitting better quality SARs (v9): NCA/UKFIU updated June 23: Glossary

Economic Crime Supervision Handbook: Sanctions for Non-Compliance: 26 May 23: updated 7 June 23

Home

Northern Ireland fraud sparked “biggest ever tax probe”, HMRC says –27 sentenced: Belfast Live: 14 Jun 23

Ukrainian bank accuses former owners of ‘epic’ fraud at London trial – £1.5 B misappropriated covered up by “money laundering on a vast scale”: Independent: 12 Jun 23.

Police release Nicola Sturgeon without charge re ongoing investigation into SNP funding and finances: BBC News: 11 June 23

MOVETit hac BBC, BA and Boots among cyber attack victims: BBC News 6 June 25. BBC, BA and Boots issued with ultimatum by cyber gang Clop: 7 Jun 23

Ex-Formula One boss Bernie Ecclestone denies fraud charge ‘after hiding more than £400m from the taxman in Singapore‘: D.Mail 6 Jun 23.

Austrian banker loses fight against extradition to U.S. on Odebrecht charges – banker accused of laundering hundreds of millions of dollars alleged “lured” to UK by US LEAs in order to arrest him: Reuters 5 June 23.

‘Gatsby of Cambridge’ Caroline Calloway lied on university application: D. Telegraph: 4 Jun 23. Related: How I got hooked on Instagram celebrity Caroline Calloway: BBC 3: 29 Jul 23; My Insta Scammer Friend: BBC 3 documentary on above: 44 minutes

• £80m laundered through 3 money transfer businesses between 2011-2014: VOT argument rejected by CA: Thakoraka-Palmer [2023] EWCA Crim 491

The Privatisation of corporate Policing: Jonathan Fisher KC: Counsel Magazine: 8 May 23

EU & Abroad

Britishvolt owner’s offices raided by Australian tax police: BBC News: 26 Jun 23

TerraUSD: South Korea ‘cryptocrash king’ Do Kwon jailed – 4 months for forging documents: still, facing charges in US & S. Korea over $40B collapse of terraUSD and Luna tokens: BBC News: 20 Jun 23.

Hacker gang Clop publishes victim names on dark web – 50 organisations including banks, universities, federal agencies, Shell targeted by MOVEit hack: BBC News 16 Jun 23. Gang claims not to have BBC, BA and Boots data: BBC News 20 Jun 23.

France passes law to regulate paid influencers, combat fraud – first European country to regulate influencers on social media: abc News 1 Jun 23