Briefings
Mishcon Fraud Watch
Personal
Banking & Finance
Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
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| March 2008 |
Welcome to the March 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 which 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 been granted a Property Freezing Order over assets worth £202,500 against Paul Andrew Newmarsh of Solihull, West Midlands. Mr Newmarsh is currently serving a jail sentence for money laundering.
ARA press release, 26 February 2008
The ARA has been granted a Property Freezing Order over assets worth £74,244 against James Anthony Sloan, a Customs Officer in Belfast. Mr Sloan was sentenced to 18 months in jail, suspended for five years, following the seizure of almost 6 million cigarettes.
ARA press release, 23 February 2008
The ARA has been granted a Confiscation Order for £400,000 against Malachy Augustine Higgins of Coleraine. Mr Higgins was convicted of keeping and disposing of illegal waste.
ARA press release, 13 February 2008
Banking & Finance
Shinder Gangar and Alan White, former accountants with Dobb White & Co, have been found guilty of a high yield investment fraud worth $200m.
Serious Fraud Office press release, 22 February 2008
Surveys
According to KPMG the number of fraud cases coming to court in 2007 fell to 197 from 277 in 2006. The value of these cases was estimated at over £1bn, the highest for over 20 years.
KPMG Fraud Barometer, 4 February 2008
Serious Fraud Office (SFO)
Lord Justice Moses has criticised the government for dropping the SFO investigation into arms deals between BAE Systems and the Saudi government. He made his comments during a legal challenge to the SFO’s decision to drop the investigation.
Financial Times, 15 February 2008
HM Revenue & Customs (HMRC)
HMRC is to fight a VAT Tribunal ruling to allow a company to recover VAT payments frozen by HMRC in connection with carousel fraud. The tribunal rejected the HMRC argument that the company should have known or been aware of an alleged fraud in a supply chain.
The Daily Telegraph, 5 February 2008
North America
Banking & Finance
HSH Nordbank, a German bank, has issued a writ against UBS in New York for allegedly defrauding the company of $500m through a portfolio of collateralised debt obligations linked to the US residential mortgage market.
The Daily Telegraph, 27 February 2008
David Bermingham, Gary Mulgrew and Giles Darby, the former bankers know as the NatWest three, have each been jailed for 37 months after pleading guilty to one count of fraud.
The Guardian, 23 February 2008
Phillip Bennett, the former chief executive of finance firm Refco, has pleaded guilty to conspiracy and fraud charges. Mr Bennett admitted to keeping heavy losses a secret from auditors and investors.
BBC website, 17 February 2008
Sir David Li and Michael Leung have agreed to pay over $24m between them to settle charges of insider dealing brought by the US Securities & Exchange Commission (SEC). The SEC claimed that Mr Li passed on inside information to Michael Leung about a secret bid by Rupert Murdoch for Dow Jones. Neither admits any wrongdoing.
The Independent, 6 February 2008
Western Europe
Taxation
Police and tax investigators in Germany are investigating alleged tax fraud estimated to be worth up to €4bn. It is thought that approximately 1,000 people have made illegal transfers to accounts in Liechtenstein.
The Independent, 19 February 2008
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.