Victim or villain? Illegality and corporate attribution in the Supreme Court

Jetivia SA & Another v. Bilta (UK) Limited (in Liquidation) & Others

When the directors of a company involve it in wrongdoing, can the company (or a liquidator acting in the name of the company) sue those directors and their accessories for the losses suffered as a result of that wrongdoing? Is the company the ‘victim’ of the fraud at the hands of its directors, or is the company the villain of the piece because its human agents’ wrongful conduct can be attributed to the company? Instinctively, the right answer may seem obvious, writes Luke Richardson of Baker & McKenzie, but the question has prompted extensive academic debate – and engendered longstanding confusion in the UK’s highest courts – about whether the company should be barred from bringing such a claim as a result of the doctrine of illegality.

Criminal & Civil Proceedings, Financial Misstatement, Internal Fraud, Europe

Back from a cyber hack

The first reaction will be panic, so having a process to turn to is invaluable. Corey Fotheringham of Deloitte walks us through what’s involved when responding to a cyber incident.

Response Plan, Online Fraud

Forex rigging settlements bite

“Primed like a coiled cobra… concentrating so hard… made of wax”: a Barclays trader poised to trigger a stop loss order was so engrossed he hadn’t “even blinked”.

Criminal & Civil Proceedings, Law Enforcement, Cartels, Market Abuse, Europe, North America

Italy targets corruption with new law

The Italian government has launched a clampdown on corruption after both houses of the parliament backed a law that targets crimes involving public administration, especially fraud, and takes a tougher line on the mafia.

Law Enforcement, Legislation, Whistleblowing, Bribery & Corruption, Europe

EU projects at higher risk of corruption than nationally-funded contracts

European Union (EU) research into anti-corruption policies has concluded that projects spending EU funds are one-third more likely to be marred by corruption than those funded by EU national governments.

Detection, Prevention, Comment, Surveys and Research, Bribery & Corruption, Europe

Kering sues online wholesaler Alibaba over fake goods

French luxury goods maker Kering has sued Chinese online wholesaler Alibaba over counterfeit sales of its brands, which include Gucci, Yves Saint Laurent, Alexander McQueen, Stella McCartney and Puma.

Criminal & Civil Proceedings, Intellectual Property Fraud, Asia-Pacific, Europe, North America

Sandstorm – a Middle East survey

Dr Janice Goldstraw-White and Professor Martin Gill draw upon interviews with individuals who manage financial crime risks to explore current organisational practices for tackling fraud in the Middle East.

Comment, Surveys and Research, Middle East

Offsetting – the way to a better deal

The award of a major infrastructure project will generally come with strings attached by way of offsets to ensure that the purchasing country protects its interests, whether security or economic. In fulfilling these agreements beside the main contract, vendors need to pay close heed to the bribery and corruption risks, warn Derek Patterson and Lukas Bartusevicius of Forensic Risk Alliance.

Legislation, Prevention, Bribery & Corruption

The Turkish question: anti-corruption legislation or enforcement, which needs to change?

The legal framework around bribery and corruption in Turkey is in a phase of rapid transition, which foreign companies operating in the country need to watch closely if they are to avoid risk of sanction, say Pelin Baysal, Ceren Aral and Bensu Aydın of Istanbul-based law firm Gün + Partners.

Legislation, Bribery & Corruption, Europe, Middle East

Learn how to fight

Once viewed as an obscure, even idiosyncratic pursuit, combating fraud is fast entering the educational mainstream, evidenced by a rapid and international growth in university courses. Hanna Lange-Chenier studies the options.

Detection, Fraud (Risk) Management, Investigation, Prevention, Internal Fraud, Asia-Pacific, Europe, North America

SFO launches third bribery trial against Alstom

The UK Serious Fraud Office (SFO) has brought more corruption charges against train-maker Alstom’s British subsidiary Alstom Network UK Ltd, as well as employee Michael John Anderson.

Criminal & Civil Proceedings, Bribery & Corruption, Europe

Paper money – securing the future

Polymers and new inks are enabling banknote issuers to stay ahead of the counterfeiters – at least for now. FI correspondents look at the experience of issuing plastic currency in three jurisdictions: Alan Osborn reports from London, Lee Adendorff, from Byron Bay, Australia, and Kitty So, from Ottawa, Canada.

Prevention, Plastic Card & Payments, Asia-Pacific, Europe, North America

OLAF rebuts supervisory committee criticisms

The European Anti-Fraud Office (OLAF) has rejected numerous criticisms from its Supervisory Committee (SC) in formal responses to four opinions.

International agencies, Law Enforcement, Investigation, Europe

Open source investigations – how to search efficiently online

Never has so much information been freely available but sifting it to find answers to specific queries calls for mastery of internet tools; fortunately, these are often free as well. Dr Stephen Hill shares some indispensable sites and techniques.

Due Diligence, Intelligence Sharing, Investigation, Technology

The section 2 interview: when can the SFO exclude a solicitor?

The judgment of the Administrative Court in R (Lord & others) v SFO [2015] EWHC 865, handed down in February, is an important development in the law concerning the conduct of investigations by the Serious Fraud Office. The case has attracted no publicity to date and, surprisingly, is unreported: it is significant for all investigations lawyers, writes David Corker of Corker Binning. Moreover, in consequence, the SFO is set to amend its policy on the attendance of lawyers at section 2 interviews.

Criminal & Civil Proceedings, UK Government & Public Sector, Interviews, Europe

RBS and Nomura face massive damages after US mortgage-backed securities fraud ruling

The Royal Bank of Scotland (RBS) and Japanese bank Nomura may have to pay millions of dollars in damages after a United States judge condemned the two for false statements in selling mortgage-backed securities to mortgage providers Fannie Mae and Freddie Mac before the 2008 financial crisis.

Criminal & Civil Proceedings, Securities & Investment Fraud

‘Flash crash’ trader faces extradition to US

A British day trader, who operated from his parents’ modest house in Hounslow, is fighting extradition to the US on charges that his manipulation of a market in index futures contributed to the flash crash in 2010.

Criminal & Civil Proceedings, Securities & Investment Fraud, Europe, North America