Fraud Newsletter No. 84 October 2023

Fed. Re. Nigeria v Process & Industrial Developments [2023] EWHC 2638 (Comm) set aside 2012 arbitration award (now worth US$11B against Nigeria) for serious irregularities and substantial injustice and fraud (knowingly giving false evidence; continued bribery to buy silence of earlier bribery; and improper retention of documents.) Civil definitions of bribery reviewed {162-165]. Judgement referred to regulators over lawyers’ conduct i.e. SRA and BSB: Law Soc. Gaz. 23 Oct 23.

Pierini [2023] EWCA Crim 1189 at [73] et seq: money laundering: bad character evidence: unfitness disqualification as director of co. admissible as to D’s state of mind.

ENRC v Director SFO [2023] EWHC 2488 (Comm) – SFO PII/privilege redactions in internal report on suspected leaking of confidential case information should not be disclosed.

Mints v PJSC National Bank Trust [2023] EWCA Civ 1132: Russian state-backed banks can pursue $850m fraud claim despite one of the lenders being sanctioned.

AB v CD [2023] EWHC 2353 (Ch): re release of restrained funds where WFO allowed for reasonable sums on legal advice/representation.

AB v CD [2023] EWHC 2419 (Ch) court approach re release of funds from PFO where SFO agree to vary CRO to allow legal fees to be paid: useful review of authorities.

Economic Crime and Corporate Transparency Act 2023: failure to prevent fraud offences ss199-206 (limited to large bodies only: s.201); change to corporate identification doctrine re economic crime offences: co./partnership liable for acts of senior manager acting within scope of authority s196; enhanced powers for Companies House to identify directors & remove fraudulent organisations Part 1; greater powers re crypto assets s179-181; courts empowered to dismiss spurious lawsuits (SLAPPs) seeking to stifle free speech s194-195;

1st APP scams performance Report: PSR: 31 Oct 23

Government response to the Law Commission’s review of confiscation: HO: 25 Oct 23

2023 Half Year Fraud Report: UKFI 24 Oct 23.

National Fraud Initiative: HMRC and local authority counter-fraud pilot 2 re use of HMRC data to better identify and prevent fraud: HMRC 19 Oct 23

Proceeds of fraud – Detecting and preventing money mules: FCA: 19 Oct 23 update

Most common financial scams of 2023 revealed: based on OnePoll study: NatWest: 17 Oct 23

Whistleblowing quarterly data 2023 Q2: FCA 13 Oct 23

Independent Review of Disclosure and Fraud Offences: terms of reference to report on Disclosure Recommendations (Summer 24) & Fraud Offences Recommendations (Spring 25) to be chaired by Jonathan Fisher KC of RLC: HO 12 Oct 23

Post Office Horizon IT inquiry: Recordings, transcripts, reports, evidence and key documents etc available on the POHITI website.

CPS:

• Ex-Nigerian Politician faces 2025 trial in corruption case: The Cable: 30 Oct 23

• £2m home and large pensions sold to repay fraudsters’ court order: 26 Oct 23

FCA:

• Equifax Ltd £11m for role in one of the largest cyber-security breaches in history in 2017 failing to manage & monitor security of its UK data by outsourcing it to its US parent; 13 Oct 23

• FCA decides to fine and ban James Staley (ex Barclays CEO): £1.8m and ban on holding senior management/significant influence function in financial services industry for recklessly approving 2 misleading statements to FCA re his relationship with Jeffery Epstein. Decision being appealed: 12 Oct 23

• London Capital & Finance censured for unfair and misleading financial promotions of minibonds: no financial penalty as LCF is bankrupt: 11 Oct 23.

• ADM Investor Services International Ltd (brokers) fined £6,470,600 for inadequate AML systems and controls: 2 Oct 23

FRC:

• Sanctions against KPMG and 2 ex partners and record fines (£26.5m) re Carillion audit: 12 Oct 23.
Insolvency Service

Insolvency Service:

• OR secures multimillion payout for scam victims from £3.75m compensation awarded 10 years after bankruptcy: 5 Oct 23.

SFO:

• Glencore Bribery Charges Over Ex-Staff Hit with Fresh Delays: Delay to July 2024: Bloomberg: 31 Oct 23.

• Convicted ex-Barclays Euribor trader gets fresh shot at appeal: CCRC referral: FT: 12 Oct. 23.

• Criminal investigation launched into funeral plan provider Safe Hands Plans: 11 Oct 23.

• Ex-Patisserie Valerie finance chief denies fraud before bakery chain collapse: Ev. Stan. 10 Oct 23.

• SRA mulls levy on solicitors to plug £64m black hole at Axiom Ince: Law Soc.Gaz. 18 Oct 23

• [Solicitors’] Firms have more to do to identify and manage ML risks: fixed penalties to be introduced in 2024: SRA: 10 Oct 23. Warning notice issued 18 Oct 23 and see AML Guidance for the Legal Sector 2023: Law Soc LSAG 28 Mar 23.

• Bernie Ecclestone pleads guilty to fraud – not declaring a £400m trust. 17 months suspended 2 years; civil settlement to repay HMRC nearly £653m: BBC News: 12 Oct 23

• Alexei Kuzmichev: Sanctioned Russian tycoon detained in France: BBC News: 31 Oct 23

• New York sues Winklevoss’ Gemini & Silbert’s DCG alleging $1 B Crypto Fraud Scheme: Forbes: 19 Oct 23

• Two former Trump lawyers plead in Georgia election subversion conspiracy: Kenneth Chesebro: BBC News 20 Oct 23 and Sidney Powell: BBC News 19 Oct 23.