Mishcon Fraud Watch - January 2012
Welcome to the January edition of Mishcon Fraud Watch. 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 judgment 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
Financial Services
The Serious Fraud Office is to return evidence gathered in dawn raids on the office of entrepreneur Vincent Tchenguiz after it admitted there were failings in search warrants it obtained prior to his arrest. It is understood the SFO is to continue its investigation and has asked for certain elements of the evidence to be kept in storage and returned in January.
Caroline Binham
Financial Times, 23 December 2011
Reports & Surveys
A report by CIFAS has warned of a twelve per cent increase in "misuse of facility" fraud, where fraudsters recruit an innocent party, perhaps under the pretence of a job offer or personal favour, to launder money.
Laura Shannon
The Times, 10 December 2011
united states of AMERICA
Securities and Exchange Commission (SEC)
The SEC has charged GE Funding Capital Market Services with securities fraud for allegedly participating in a wide-ranging scheme involving the reinvestment of proceeds from the sale of municipal securities.
SEC press release 2011-276, 23 December 2011
The SEC has charged six former top executives of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation over allegations of securities fraud.
SEC press release 2011-267, 16 December 2011
The SEC has charged seven former Siemens executives with alleged involvement in a bribery scheme to retain a $1 billion government contract to produce national identity cards for Argentine citizens.
SEC press release 2011-263, 13 December 2011
The SEC has charged Stiefel Laboratories Inc., a subsidiary of GlaxoSmithKlein, and the subsidiary’s former chairman and CEO over allegations of defrauding employees and other shareholders.
SEC press release 2011-261, 12 December 2011
Six former Fannie Mae and Freddie Mac executives were charged with securities fraud by the SEC.
The Blog of Legal Times, 16 December 2011
EUROPE
Companies
Celebrity photographer François-Marie Banier has been accused of "abuse of mental weakness", fraud, money laundering and embezzlement after receiving gifts worth Euro1bn from Liliane Bettencourt, the chief shareholder of the cosmetics giant L'Oréal.
John Lichfield
The Independent, 14 December 2011
ASIA
Companies
Japanese prosecutors have raided the Tokyo headquarters, executives’ homes and related premises of Olympus in connection with investigations into allegations of an accounting scandal.
Michiyo Nakamoto
The Financial Times, 22 December 2011
AUSTRALASIA
Government
Public servant Hohepa Morehu-Barlow, also known as Joel Barlow, who posed as a Tahitian prince and lived a luxury lifestyle, is on the run in Australia after allegedly embezzling up to £10.4 million from the Queensland government.
Sophie Tedmanson
The Times, 11 December 2011
Mishcon de Reya
Mishcon's Fraud Watch is published by the Dispute Resolution Department of Mishcon de Reya. Widely recognised as the leader in the field of fraud investigations, the Department has pioneered the use of financial fraud techniques in numerous fields, including the rapidly growing areas of theft of confidential information and counterfeiting. The Department founded and run both the Fraud Network, made up of international legal fraud specialists and the Financial Risk Group, for risk and compliance officers.