Lesson to be learned - Tchenguiz litigation

The protracted litigation between the Tchenguiz brothers and the Serious Fraud Office over its investigation into their dealings with an Icelandic bank, subsequent searches of their homes and business premises and the prosecutions brought against them is highly instructive on search warrants and procedure and the law of disclosure and privilege. In tracing the significance of the proceedings, Charles Thomson of Baker & McKenzie also explores some key mistakes to avoid and useful lessons to be learned.

Disclosure, Privilege, Search and Seizure

Innospec: lessons for cooperating defendants

A high-profile case of what the judge called “institutionalised corruption” concluded in recent months, as staff of chemical company Innospec learned their fates. Neil Swift, who acted for the cooperating defendant David Turner, analyses the sentences.

Criminal & Civil Proceedings, Bribery & Corruption, Europe

“No improvement” in insurance intermediaries’ ABC risk controls

Most small wholesale insurance intermediaries still do not adequately manage their risk of bribery and corruption, the UK’s Financial Conduct Authority has said in a new review.

Fraud (Risk) Management, Prevention, Comment, Surveys and Research, Bribery & Corruption, Europe

“Likely” to be more LIBOR charges

The Serious Fraud Office lawyer who heads the LIBOR manipulation investigation has told Fraud Intelligence that further individuals are likely to face charges in the case.

Criminal & Civil Proceedings, Market Abuse

UBS, Citi, JPMorgan, RBS and HSBC fined £1.1bn for forex misconduct

Fines totalling £1,114,918,000 have been levied on five banks by the Financial Conduct Authority because they failed to control conflicts of interest that led to attempted manipulation of G10 spot foreign exchange currency rates.

Market Abuse

China and USA push hard line on corruption at APEC meeting

China, other Asian and Pacific nations, and the USA have promised a new crackdown on corruption, including through fresh measures. The APEC (Asia-Pacific Economic Cooperation) summit in China ended on Monday (10 November) with a commitment to strengthen cooperation and coordination on repatriation or extradition of corrupt officials, as well as confiscation and recovery of corruption proceeds.

Bribery & Corruption, Asia-Pacific, North America

EU budget ‘fraud and error’ misspend almost €7bn in 2013

The European Union’s (EU) financial watchdog, the Court of Auditors has found the EU’s 2013 accounts to be adrift by nearly €7 billion and urged a radically different approach to future spending to pinpoint fraud and mismanagement.

International agencies, Audit, Comment, Surveys and Research, Europe

European Public Prosecutor proposals flawed, says Lords committee

A European Public Prosecutor’s Office (EPPO) could be overwhelmed by fraud casework if the current European Commission model is followed, a House of Lords committee warns in a report published today [3 November 2014].

Criminal & Civil Proceedings, International agencies, Law Enforcement, Europe

“Cases under active consideration” for DPAs

The Serious Fraud Office has “cases under active consideration” for deferred prosecution agreements, its director David Green told the Pinsent Masons Regulatory Conference on 23 October.

Criminal & Civil Proceedings, Law Enforcement, Investigation, Comment, Surveys and Research, Whistleblowing, Bribery & Corruption

Tesco accounting irregularities examined by Serious Fraud Office

Tesco, the UK’s largest retailer, is under investigation by the Serious Fraud Office, it was announced today [29 October], following the company’s disclosure, last month, that it had overstated half-year profits by £250m, a figure since revised upwards to £263m.

Financial Misstatement, Europe

Deferred prosecution agreements dissected

The first DPAs under the United Kingdom’s new scheme for settling corruption offences with corporates are awaited with intense interest. A panel at the recent University of Cambridge International Symposium on Economic Crime discussed some of the issues. By Esther Martin

“Certainly for the first few cases there is likely to be something of a Mexican standoff between the corporate defendant, the Serious Fraud Office and the judge… when nobody really wants to blink first.”

Criminal & Civil Proceedings, Disclosure, Interviews, Comment, Surveys and Research, Bribery & Corruption

Wright defends SFO model in face of Home Office 'empire-building'

Manoeuvres by the UK’s Home Office to take over the economic crime work carried out by the Serious Fraud Office (SFO) have been rebuffed by the attorney general in the House of Commons.

Law Enforcement, UK Government & Public Sector, Comment, Surveys and Research, Europe

City of London Police adapt to online threat

Fraud in the UK is on an upward trajectory, driven by the growth of online crime, City of London Police Commissioner Adrian Leppard told the London Fraud Forum on 9 October 2014: “I’m not sure what the answer is [but] it’s certainly not going to be through enforcement. It can only be through prevention and working with industry.”

Law Enforcement, Prevention, Online Fraud, Europe

Eating the elephant – procurement protection in the food supply chain

The procurement cycle can be complex with multiple opportunities to conceal significant losses to fraud and corruption. John Baker and Duncan Swift of Moore Stephens break down the exposure in the food supply chain and look at how to mitigate it by judicious tightening of policies and controls.

Detection, Vendor, Supplier and Procurement Fraud

Cyber security attacks up 48% in a year

Reported information security incidents rose 48% to 42.8 million globally over the year to late September, according to a Global State of Information Security Survey (GSISS) 2015 from global accountants PwC (PricewaterhouseCoopers).

Comment, Surveys and Research, Online Fraud

European currents – new Commission, fresh direction

A new European Commission nominated to hold office for the next five years has been told by its incoming president that it must increase transparency and avoid any hint of sleaze.

International agencies, Tax & Excise, Tax Fraud, Europe

UK ‘vishing’ attacks rise, says anti-fraud group

Remote banking fraud by criminals using online computer viruses and telephone ‘vishing’, in which victims are persuaded to disclose security details, soared 59% in the first half of 2014 to cost UK banks, businesses and individuals £35.9 million.

Comment, Surveys and Research, Identity Fraud, Online Fraud, Plastic Card & Payments, Europe