Briefings
Mishcon Fraud Watch
Banking & Finance
Fraud: Claimant
Fraud: Defendant
Insolvency and Recoveries
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| May 2008 |
Welcome to the May 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
Banking and Finance
The founder of Langbar International, Mariusz Rybak, has agreed to pay the company approximately £30m to settle a civil fraud lawsuit.
Financial Times, 22 April 2008
Government
The Attorney General's Office has published a consultation document on the introduction of plea negotiations in fraud cases.
The Introduction of a Plea Negotiation Framework in Fraud Cases in England and Wales: A Consultation, 3 April 2008
Serious Fraud Office (SFO)
The SFO has announced that it will continue its investigation into alleged price-fixing at Goldshield, the British drug manufacturer. The House of Lords ruled that price-fixing does not in itself amount to a conspiracy to defraud but left the door open for the SFO to take an amended case to the original High Court judge.
The Daily Telegraph, 22 April 2008
Utilities
Ofwat has fined Severn Trent £35.8m for misleading their customers over leakage data. The water company has also pleaded guilty to two of three charges brought against it by the Serious Fraud Office.
Financial Times, 9 April 2008
North America
Banking and Finance
The Securities and Exchange Commission (SEC) has filed a civil action against the hedge fund manager, Headstart Advisers, and its sole director, Najy Nasser. The SEC claim that Headstart and Mr Nasser defrauded US mutual funds and shareholders.
Financial Times, 11 April 2008
Steven Karvellas, a former director of the New York Mercantile Exchange, has pleaded guilty to charges of illegal trading and evidence tampering following an investigation into fraudulent natural gas transactions.
Financial Times, 9 April 2008
Eastern Europe
Banking and Finance
Hermitage Capital, a leading foreign portfolio investor in Russia, claims it has been the victim of an attempted fraud and theft of hundreds of millions of dollars by individuals connected to the Russian Interior Ministry.
The Times, 4 April 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.