Fraud Newsletter No. 88, Jan 2024

• LPP & LAP: (i) balance of probabilities is merits threshold of privilege iniquity exception save in exceptional circumstances – full analysis & review of authorities; (ii) documents disclosable if “part of“ or “in furtherance of” the iniquity – distinction explained; (iii) lit. p. extends to docs brought into existence in contemplation of litigation to which the person having that contemplation is not a party; (iv) Three Rivers does not apply to lit. p.:  Al Sadeq v Dechert LLP, Gerrard & Ors [2024] EWCA Civ 28.
• Phillips v Secretary of State for Foreign, C&DA [2024] EWHC 32 (Admin): s 38 SAMLA 18 authorises regulations that permit imposition of sanctions that interfere with common law and convention rights
• “Officer of a body corporate” under TULRCA 92 excludes insolvency administrators:  R (Palmer) v North Derbyshire Mag. Crt [2023] UKSC 38.

• Gross [2024] EWCA Crim 21: sufficient to convict D of s.328 POCA offence if D knew or suspected monies were crim. Property.

• The Criminal Procedure (Amendment) Rules 2024 coming into force 1 April 2024. Note changes to CrimPR 15.2 (Defence response required to DMD)
• Online Safety Act 2023 (Commencement No.3) Regulations 2024 (SI 2024/31): Brings into force Part 10 Communications Offences on 31 January 2024.

Draft amendments to POCA codes arising from Economic Crime (Transparency and Enforcement) Act 2022 and Economic Crime and Corporate Transparency Act 2023: (a) POCA (Search, Recovery of Cryptoassests and Investigations: Codes of Practice Regs 2024; (b) POCA (Investigative Powers of Prosecutors: Code of Practice) Order 2023; (c)  Proceeds of Crime Act 2002 and Terrorism Act 2000 (Certain Information Orders: Code of Practice) Regulations 2024 and (d) Terrorism Act 2000 (Code of Practice for Authorised Officers) Order 2024. The draft Codes to be force 26 April 24.

• Draft Code: Recovery of Cryptoassets: Search powers
• Draft Code of Practice under S47s POCA 2002 (Search, Seizure and Detention of Property (England and Wales).
• Draft Code of Practice under s377 POCA (Investigations)
• Draft Code of Practice for officers acting under Sched 1 to ATCSA 2001

Corruption Perceptions Index 2023 UK falls to lowest ever position: Transparency International: 31 Jan 24

Investigation into student finance for study at franchised higher education providers who account for 6.5% of total Student Loan Co. funded students but 53% of £4.1m detected fraud:  Nat. Audit Off. 18 Jan 24: Summary see §§12-16

Guidance on ML reporting obligations re the DAML exemption provisions introduced by the Economic Crime and Corporate Transparency Act 23: HO: 10 Jan 24

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

• Post Office set targets for recovering cash from operators accused in Horizon scandal: Guardian: 23 Jan 24.
• Government to quash wrongful Post Office convictions: MoJ: 10 Jan 24
• Post Office scandal: Met Police investigate ‘potential fraud offences’: BBC News: 6 Jan 23
• Post Office scandal: lawyers in the frame: Joshua Rosenberg: LSC: 5 Jan 24

• Individual charged with fraud over unauthorised investment scheme: 22 Jan 24.
• Car Finance Complaints: FCA investigating possible breaches of 2021 ban on discretionary commission arrangements: 11 Jan 24.

• 8 yrs for E. London money launderer who took payments for small boats crossings: 24 Jan 24.
• Couple sentenced for romance fraud and laundering criminal cash: 24 Jan 24
• Two more convictions in £100m ‘cash in suitcases’ conspiracy: 12 Jan 24.
• Telegraph faces potential probe by NCA over report of ‘suspicious financial activity’: Mail: 6 Jan 24.

• Extradited Autonomy founder Mike Lynch sues SFO over data request: Guardian: 31 Jan 24
• David Cameron’s activities at Greensill a ‘matter of interest’ in wider fraud inquiry: Guardian: 27 Jan 24
• SFO charges two company directors over £88m car lease scheme: 19 Jan 24.
• Judge demands answers from SFO over Glencore charging delays: SFO potentially requires AG approval for charges: GIR [paywall]: 18 Jan 24.
• Deal or no deal: Catherine Baksi article on DPAs: Law Soc Gaz. 15 Jan 24
• Nick Ephgrave – the first 100 days: Law Soc Gaz: 12 Jan 24.

• Tax measures to encourage economic growth: Part 3 Managing the risk of error and fraud in non-structural reliefs – likely level of fraud and error on R&D SME relief 24.4% (£1B) 2020/21:  Nat. Audit Off: 31 Jan 24.
• Woman tried in London over alleged bitcoin laundering from $6.3bn China fraud: Reuters: 30 Jan 24
• Fortress scandal boss accused of falsifying Companies House register: Times (paywall): 30 Jan 24
• UK sets global blueprint for APP fraud reimbursement: The Banker: 26 Jan 24
• Michelle Mone has £75m of assets frozen as NCA investigates fraud: Guardian: 26 Jan 24
• Spot-fixer’s associate received £80k cash from boxing promoter Associate is a close connection of Mazhar Majeed imprisoned for his role in the Pakistan fixing scandal at Lords: S.Times: 20 Jan 24 (paywall)
• HMRC has not charged a single company over tax evasion under landmark legislation: Guardian: 20 Jan 24
• Liar: The Fake Grooming Scandal: BBC 3 – documentary on 22-year-old Ellie Williams sentenced to 8½ years for perverting the course of justice: Guardian: 19 Jan 24.
• Michelle Mone’s husband linked to tax firms whose clients submitted misleading claims: Guardian: Guardian: 18 Jan 24.
• Pension fraudsters forced to hand over their assets after TPR probe: TPR: 17 Jan 24.
• Former solicitor jailed for defrauding clients of £1.7m ordered to pay back £3,000: LSG: 15 Jan 24.
• Tribunal slaps Clyde & Co with £500k fine for AML failures  to carry out adequate due diligence) and £128k costs:  legalfutures: 12 Jan 24
• 2 directors of Tuita found to have defrauded investors and ordered to pay £20m: Tiuta International (Liquidators) v Booth and Nichols [2023] EWHC 3195 (Ch).
• PM urged to suspend whip from pensions minister accused of misusing taxpayer funds: Guardian: 6 Jan 24
• Endeavour Mining ousts CEO over ‘serious misconduct’: Reuters 5: Jan 24
• Fraudsters impersonate NCA officers in ‘child pornography’ scam emails: Action fraud: 5 Jan 2024

• AML: Council and Parliament strike deal on stricter rules: EU Press Release: 18 Jan 24.
• Trial of Guillain Méjane: the “Madoff of Maine-et-Loire” – €16m Ponzi scheme on 57 “aristos”: Forbes: 8 Jan 23.
• New rules to combat fraud on cross-border payments in the EU in force from 1 January to help combat VAT fraud: EC Press Corner: 1 Jan 24

• Former Freshfields partner sentenced to jail for German tax fraud – 3½years for Maple Bank “cum-ex” fraud: Reuters: 30 Jan 24.
• Ukraine says it has uncovered major arms corruption: BBC: 28 Jan 24.
• Former Law Firm Partner Sentenced to 10 Years for Laundering $400m of OneCoin Fraud Proceeds: DoJ: 25 Jan 24.
• British billionaire Joe Lewis pleads guilty to US insider trading: Guardian: 24 Jan 24.
• US: CEO of Bitcoin Platform Charged in Multi-Million Dollar Ponzi Scheme: OCCRP: 23 Jan 2024.
• UN staff on £1.5bn Iraq aid project ‘demanding bribes’: Guardian 22 Jan 24.
• Cryptocurrency firm Terraform Labs files for bankruptcy in US: lost $40B in May; co-founder in Montenegran custody awaiting extradition to US or S. Korea: BBC News: 22 Jan 24.
• Isabel dos Santos charged with 12 crimes in Angola over dealings as Sonangol chair: accused of defrauding the country of $219 million: ICIJ; 19 Jan 2024.
• US: Fifth Member in Off-Road Tire Ponzi Scheme Pleads Guilty: Estimated $50 million; OCCRP: 16 January 2024
• US: Another Feeding Our Future Fraudster Pleads Guilty: $250 million stole from a US federal programme; OCCRP: 12 January 2024
• Software firm SAP to pay $220m over bribery charges: BBC: 10 Jan 24
• Guinea Orders Legal Action Over Rosewood Export Fraud; illegal export of critically endangered rosewood to China; OCCRP: 5 January 2024
• Ex Vitol Trader Heads to US Trial on Ecuador bribery charges: Reuters: 2 Jan 24.

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