Marked by difference – anti-corruption in the EU

Corruption may be a huge drag on the economy of the European Union [EU] – a fact confirmed by the Commission in its first report on the issue this year – but the response of member states is uneven and all too often weak. Kevin Robinson of Morgan Lewis pinpoints some of the legal and cultural reasons.

Comment, Surveys and Research, Bribery & Corruption, Europe

Double the jeopardy – insider and cyber risk

An 18% annual rise in insider fraud, as reported by CIFAS, the UK's Fraud Prevention Service, demands a stronger response from organisations, says Richard Abbey of Stroz Friedberg, even as they have to rethink their controls to confront the threat of compromise and loss through online attack.

Detection, Prevention, Internal Fraud, Online Fraud

UK government launches anti-corruption strategy

The British government has announced its long awaited anti-corruption strategy, issuing a paper detailing a comprehensive list of reforms, including significant anti-money laundering (AML) and anti-fraud components.

Criminal Confiscation & Civil Recovery, Freezing & Restraint, Law Enforcement, UK Government & Public Sector, Whistleblowing, Bribery & Corruption, Europe

Ex-JJB Sports chief executive jailed over secret payments

Southwark Crown Court, in London, has sentenced the former CEO of a British sports good retailer JJB Sports to five years in prison for three fraud offences, totalling around UK£1 million, and for two offences of ‘furnishing false information’.

Criminal & Civil Proceedings, Europe

Out of favour – foreign bribery, the attitudes and facts

In the season of giving and receiving it is somehow apt there should be major new findings around bribery and corruption to unwrap.

Comment, Surveys and Research, Bribery & Corruption

Telephone fraud on rise in UK, study finds

A report by the organisation Financial Fraud Action UK (FFA UK) has claimed that UK£23.9 million was lost in the UK to phone scams this financial year, to 5 April 2014 – three times more than in the previous 12 months.

Dishonesty & Deception, Prevention, Telecoms Fraud, Europe

Management implicated in majority of bribery cases, OECD finds

Corporate management or chief executive officers (CEOs) were involved in more than half of foreign bribery cases considered in the Organisation for Economic Cooperation & Development’s (OECD) first ‘Foreign Bribery Report,’ launched today (2 December).

Comment, Surveys and Research, Bribery & Corruption

West, Whale & Stone: SFO scores a first under the Bribery Act 2010

In Southwark Crown Court yesterday morning [8 December 2014], three individuals prosecuted by the Serious Fraud Office for fraud and corruption offences, including offences under the Bribery Act 2010, were sentenced. They were each given long custodial sentences, ranging from 6 to 13 years’ imprisonment. Omar Qureshi and Amy Smart of CMS Cameron McKenna review the case.

Criminal & Civil Proceedings, Bribery & Corruption, Europe

Innospec: the civil claim aftermath of criminal liability for bribery

A recent decision of the High Court in Jalal Bezee Mejel Al Gaood et al v Innospec Limited et al. provides a reminder of the potentially serious financial consequences that can result for companies engaged in bribery. Not only may bribery result in serious criminal liability, financial penalties, debarment from public procurement contracts, confiscation of assets and reputational damage, writes Charles Thomson of Baker & McKenzie, but it may also form the basis of potentially massive follow-on civil damages claims.

Criminal & Civil Proceedings, Bribery & Corruption, Europe

A year in court: leading cases of 2014

In the last 12 months, the Court of Appeal and Supreme Court have settled some longstanding questions for civil fraud practitioners, including whether a stranger to a trust, accused of dishonest assistance or knowing receipt, can be treated as a trustee, and how to determine if a claimant’s cross-undertaking in damages should be strengthened, to name but two. Laurence Katz of gunnercooke reviews the principal decisions.

Corporate Vehicles / Trusts, Criminal & Civil Proceedings, Dishonesty & Deception, Freezing & Restraint, Bribery & Corruption, Europe

Dynamic defence – how to respond to cyber risk

Intellectual property and other data held on IT systems may well be an organisation’s most valuable assets and so a prime target for unauthorised access and acquisition. Phil Beckett of Proven Legal Technologies examines cyber risk and how to defend against attacks which can come from any direction.

Detection, Prevention, Data Loss, Online Fraud

Corporate conviction – a higher price to pay

New guidelines on sentencing of individuals and corporates in the UK for financial crime offences are now in effect. Charles Thomson and Andrew Keltie of Baker & McKenzie review the framework and draw comparison with the US approach.

Criminal & Civil Proceedings, Europe

Preserving privilege in international investigations

In a Gershwin hit song, Fred Astaire threatened to “call the whole thing off” with Ginger Rogers because of their different pronunciations of potato and tomato. Finding a common language is even trickier when dealing with trans-Atlantic legal privilege issues. Tim Coleman, Andrew Hart and Amalia W Jorns outline the significant variances to consider when conducting an international investigation.

Privilege, Investigation, Europe, North America

Looking for trouble online – European Cybercrime Centre to the fore

Almost two years since its January 2013 launch, the European Cybercrime Centre (EC3), which sits within Europol, may have delivered on its objectives but still faces numerous resource challenges. Carmen Paun reports from Brussels.

International agencies, Investigation, Prevention, Online Fraud, Europe

OECD cites high level of management complicity in bribery

In more than 50% of the concluded cases since the OECD anti-bribery convention came into force 15 years ago, senior management were – if not actively involved – at least aware of the problem, a report to be released in December will reveal.

International agencies, Comment, Surveys and Research, Bribery & Corruption

Cross-border currents - EU pushes ahead with reforms as new Brussels team beds in

The European Commission has proposed changing the basis of intra-European Union (EU) VAT arrangements. It wants to shift away from the current system where VAT is charged in the country of supply, which Brussels regards as vulnerable to fraud.

International agencies, Prevention, Bribery & Corruption, Tax 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