Fraud Newsletter No. 82 August 2023

August 31, 2023
Cases

Preparatory hearing only arises if court declares at beginning of relevant hearing that it is a PH: Miah [2023] EWCA Crim 928

Meaning of Collective investment scheme – Ponzi-like care home scheme (see FCA below): FCA v Forster and Ors: [2023] EWHC 1973 (Ch)

Serious Criticism of FCA re ongoing disclosure failings, failure to call witnesses, failure to conduct a rigorous investigation; relying on internal investigations of others; and “a mindset of confirmation bias”: Seiler v FCA [2023] UKUT 133 (TCC) in particular at §§ 918 – 931.

Sentencing & Confiscation

Gathering together the correct principles to be applied re totality for criminal offence and related POCA benefits offence Cooper [2023] EWCA Crim 945.

Consultations, guidance, circulars and reports

FCA expectations for UK cryptoasset businesses complying with the Travel Rule: 17 Aug 23.

Consultation to ban scam calls launched: Home Office/HM Treasury: 2 Aug 23

Prevention of ML/ combatting terrorist financing: revision of Chapter 5, § 5.3.89 – managing risk of impersonation submitted for Treasury approval: JMSLG 1 Aug 2

Review of the attacks associated with Lapsus$ and related threat groups: DHS Cyber Safety Review Board: 24 July 23 released 10 Aug 23: Press summary.

News

FCA:

FCA “ignored whistleblower claims of WealthTek fraud”: The Times (paywall) 31 Aug 23. FCA is investigating WealthTek & John Dance (principal partner) re potential regulatory breaches re client money and custody assets, and criminal offences of fraud and money laundering: see FCA updated 31 May 23.

Financial watchdog wins civil case against Ponzi-like care home investment scheme: 28 Jul 23: FCA v Forster and Ors:

NCA:

• Three British based criminals sentenced in US over inheritance scam – 21 years: 30 Aug 23.

Qakbot: cyber crime service taken out in international operation: 29 Aug 23

Increased prison terms for crime bosses who supplied fraudulent passports to UK criminals: 25 Aug 23

• Ex-Nigerian politician charged in corruption case: 22 Aug 23.

• Operation Venetic: Corrupt police worker admits tipping-off criminal over secret nationwide investigation: 18 Aug 23.

• Madagascan President’s Chief of Staff charged with bribery – next hearing Southwark: 14 Aug 23.

SFO:
Rio Tinto case closed “not in the public interest to proceed with a prosecution in the UK”: 24 Aug 23:

ENRC case closed: “insufficient admissible evidence to prosecute”: 24 Aug 23.

• Notice of Discontinuance on expiry of DPAs Bluu Solutions Ltd and Tetris Projects: SFO Summary: updated 28 Jul 23: DPAs, Statements of Facts and Undertakings and SFO v Bluu Solutions and Tetris-Projects de-anonymised Judgement of 19 Jul 21.

Home

• Bank fined £5.4m after energy traders used WhatsApp contrary to transparency rules: BBC News: 23 Aug 23

New Confiscation Case will test UK’s Commitment to Transparent Asset Return: Trans Int. 22 Aug 23 re £100m Ibori confiscation 24 Jul 23

Family helped defraud Royal Mail of £70m, court hears – conspiracy to commit fraud by false representation between 2008-2017: Independent: 16 Aug 23

Widower of jailed Post Office worker loses appeal in wake of Horizon scandal: Guardian: 15 Aug 23

Fraud claim levelled against NatWest over Northern Ireland loans: Times (paywall): 15 Aug 23

Entain eyes bonus clawbacks from ex-bosses ahead of £600m fine re criminal investigation into its Turkish business: S. Times (paywall) 13 Aug 23.

Another big firm to face SDT over alleged money laundering: Law Soc. Gaz: 10 Aug 23

Luxury properties belonging to former dictator’s daughter seized: MSN: 9 Aug 23.

‘Crooked’ lawyers who help small boats migrants lie to ‘game immigration system’ face life in prison: LBC: 8 Aug 23.

Abroad

Trump and 18 others charged in Georgia election inquiry: indictment includes racketeering, conspiracy to commit forgery, false statements, and filing false documents: BBC News: 15 Aug 23

UBS to pay $1.4bn to settle fraud claims from 2008 crisis: BBC News: 14 Aug 23

Sam Bankman-Fried headed to jail after bail revoked – alleged attempt tampering with witnesses: BBC News 11 Aug 23

Razzlekhan and husband guilty of $4.5bn Bitcoin launder: BBC News 4 Aug 23.

Former President Donald Trump’s third indictment, annotated: indictment includes conspiracies to defraud the US, obstruct official proceedings, and against Right: CCN Politics: 1 Aug 23

Mozambique President Nyusi claims immunity in $2bn ‘tuna bond’ case: Aljazeera: 1 Aug 23