Briefings
Mishcon Fraud Watch
Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
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| December 2007 |
Welcome to the December edition of Mishcon Fraud Watch, prepared by the Fraud & Insolvency Group at Mishcon de Reya. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of fraud in the last month.
We make no judgement whatsoever as to the morality, legality or appropriateness of the conduct that forms the subject matter of this bulletin. We simply aim to bring these matters to the attention of those involved in the prevention, detection and investigation of fraud.
United Kingdom
Assets Recovery Agency (ARA)
The ARA has obtained a civil recovery order for £60,000 against two students who sold counterfeit designer Tiffany jewellery and high-value designer handbags on internet auction site, eBay.
Assets Recovery Agency press release, 28 November 2007
The ARA has obtained a civil recovery order against Fabian Jackson of Hackney, to recover approximately £628,000 worth of assets. The ARA alleges that his assets were obtained through unlawful conduct, namely drug dealing, money laundering and mortgage fraud.
Assets Recovery Agency press release, 16 November 2007
The ARA has obtained a confiscation order worth nearly £41m against Gerald Smith. Mr Smith is currently serving an eight-year prison sentence after being found guilty of the misappropriation of funds belonging to Izodia, a software company, in September 2006.
Assets Recovery Agency press release, 13 November 2007
Banking and Finance
The Information Commissioner is to launch an investigation into possible security breaches following the discovery of a number of websites offering the bank details of individuals for sale.
The Times, 3 December 2007
Utilities
The Serious Fraud Office is to charge Severn Trent Water in connection with providing false information concerning leakage data to Ofwat in 2000, 2001 and 2002.
Financial Times, 23 November 2007
VAT
Malcolm Edwards, a lay preacher, has been jailed for ten years after admitting eight counts of conspiracy to cheat the public revenue. It is estimated that Mr Edwards cheated HM Revenue and Customs of up to £51m through a carousel fraud involving the sale of mobile phones and other electrical items imported from the EU.
The Daily Telegraph, 30 November 2007
North America
Energy
Three former NatWest bankers have pleaded guilty to fraud charges in the US. The charges were linked to the collapse of Enron.
The Sunday Telegraph, 2 December 2007
Media
Ravelston, the Canadian holding company for Conrad Black's media empire, has been fined US$7m and ordered to pay US$6m in restitution after pleading guilty to fraud.
The Daily Telegraph, 29 November 2007
Retail
Tiffany, the jewellery company, has taken eBay to court in New York claiming the online auction house is guilty of 'contributory infringement' and is enabling fraudsters to pass off counterfeit Tiffany goods.
The Observer, 2 December 2007
Eastern Europe
Aerospace
Boris Berezovsky, a Russian tycoon living in London, has been sentenced in absentia to six years in prison by a Moscow court. The court found Mr Berezovsky guilty of fraud and embezzling nearly 215m roubles from the Aeroflot airline.
The Guardian, 30 November 2007
Government
Sergei Storcha, a Russian Deputy Finance Minister, has been charged with fraud and trying to steal £21m of state funds. The director of a company called Sodexim and the head of a Moscow bank have also been charged in connection with the alleged offence.
The Independent, 24 November 2007
South America
Electronics
Carlos Roberto Carnevali, Director of Operations at Cisco Systems in Brazil, has been charged in connection with the alleged tax evasion of up to US$845m in import duties and other taxes.
Financial Times, 23 November 2007
Mishcon de Reya
Mishcon's Fraud Watch is published by the Fraud & Insolvency Group of Mishcon de Reya Solicitors. Widely recognised as the leader in the field of fraud investigations, the Group has pioneered the use of financial fraud techniques in numerous fields, including the rapidly growing areas of theft of confidential information and counterfeiting. The Group founded and run both the Asset Protection & Recovery Network, made up of international legal fraud specialists and the Financial Fraud Group, for risk and compliance officers.