Firm News

Fraud: Victory for Mishcon de Reya in Defending Property Investment Fraud Claim Based Upon "Shifting Sand"

Release Date:

15 October 2007

Mishcon de Reya's fraud defence team scored a significant victory in the High Court this week (9 October 2007), in the case of Schmid v Fortmann with the trial Judge concluding that Schmid's evidence was 'such shifting sand' as to be incapable of being relied upon.

Catherine Schmid, a swiss national, claimed that Eva Fortmann had duped her into entering into a multi-national property investment scheme and then defrauded her out of almost £200,000. However, Schmid's case completely unravelled during detailed cross-examination at trial leaving the judge to find her evidence to be 'contrived', 'inherently improbable' and for her answers to questions during cross-examination to have been given ' without regard to their truthfulness.'

The unravelling of her story and the Judge's eventual decision was in large part as a result of Fortmann and her defence team conclusively proving that Schmid had herself falsified documents in order to seek to discredit Fortmann.

Commenting on the case, Kathryn Garbett, who heads the fraud defence team at Mishcon de Reya said:

"This should be a warning to all those who work on the maxim 'no smoke without fire'.  claimants in fraud proceedings may not always be what they seem!"