Worldwide: Fraud Watch (January 2007)

Last Updated: 10 January 2007
Article by Gary Miller

Welcome to the January edition of Mishcon Fraud Watch, prepared by the Corporate Investigations & Asset Recovery 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.


Assets Recovery Agency (ARA)

The ARA has been granted Confiscation Orders for £25,149.72 against Maria and David Hancock of Cedarwood Drive, Rogerstone, Newport following their conviction on charges of selling counterfeit DVDs.
Assets Recovery Agency press release, 19 December 2006

The ARA has been granted a Confiscation Order for £1,079,644 against Jonathon Leeming of Stratfield, Basingstoke, Hampshire following his conviction on charges of conspiracy to control prostitutes.
Assets Recovery Agency press release, 19 December 2006

The ARA has been granted a Confiscation Order for £55,000 against Peter David Spencer of Oakhall Park, Bradford, following his conviction on charges of selling pirate DVDs on eBay.
Assets Recovery Agency press release, 5 December 2006

The ARA has been granted a Civil Recovery Order on assets worth approximately £200,000 in the High Court in Belfast in respect of the estate of the late Paul Patrick Daly. Mr. Daly was shot dead in Belfast in May 2001 and had a string of criminal convictions dating back to 1983, including robbery, theft, serious assaults, and firearms offences.
Assets Recovery Agency press release, 5 December 2006

The ARA has been granted a Confiscation Order for £60,681 against Peter William Axford of Kilmartin Road, Ilford, Essex following his conviction on charges of selling counterfeit DVDs.
Assets Recovery Agency press release, 5 December 2006

Banking & Finance

Shareholders in Langbar International have issued a High Court claim against the former cash shell for more than £3m.
Financial Times, 22 December 2006

HM Revenue and Customs

The UK and the United Arab Emirates have signed a mutual legal assistance and extradition treaty aimed at curbing the use of Dubai as a centre for carrying out carousel fraud.
Financial Times, 4 December 2006


The Fraud (Trials without a Jury) Bill had its second reading in the House of Commons on 29 November 2006. The Bill proposes amendments to section 43 of the Criminal Justice Act 2003, to allow the prosecution to apply for a fraud trial to proceed without a jury.


Nine men will appear in court to face charges relating to alleged counterfeit Viagra and Cialis drugs. The alleged counterfeit drugs were discovered in the UK supply chain in 2003.
The Times, 2 January 2007

Serious Fraud Office (SFO)

The Director of the Serious Fraud Office has discontinued the investigation into BAE Systems Plc as far as they relate to the Al Yamamah defence contract with the government of Saudi Arabia. The decision was made following representations to the Attorney General and the Director of the SFO concerning the need to safeguard national and international security.
Serious Fraud Office press release, 14 December 2006

The Serious Fraud Office has closed its investigation into suspected fraud at the Ravenhead Company Limited, which went into administration in February 2001, because of lack of evidence.
Serious Fraud Office press release, 12 December 2006


Banking and Finance

Franklin Raines, the former chairman and chief executive of Fannie Mae, and two other former executives have been charged with accounting fraud. The fraud is alleged to have cost the company $6bn and lasted six years. Financial Times, 19 December 2006

The Securities and Exchange Commission has announced changes to the implementation of the Sarbanes-Oxley laws in order to make it easier for foreign companies to list in the US. Companies will no longer have to produce detailed documentation on their internal controls and auditors will no longer have to approve as many internal company procedures.
The Independent, 14 December 2006



The EU Consumer Protection Co-operation Regulation comes into force on 1 January 2007. The Regulation will help tackle traders who prey on consumers across European borders, by establishing a network of national enforcement bodies with powers to work together across the EU. The UK's co-ordinating enforcement body will be the Office of Fair Trading.
Department of Trade and Industry press release, 29 December 2006

France has agreed to drop its objections to an exemption for Britain from EU rules on VAT. The concession will allow the Chancellor to bring in tough new rules to curb missing trader fraud.
The Times, 14 December 2006


Banking and Finance

Peter Mikutta, a German millionaire now living in Switzerland, is claiming SFr44m in damages against Citibank for dereliction of its fiduciary duties. Mr Mikutta claims the bank allowed him to be defrauded by failing to check movements on his account. In a linked case, a former Citibank employee has been accused of fraud and falsifying documents by the public prosecutors in Zurich.
Financial Times, 19 December 2006



PriceWaterhouseCoopers is facing allegations in Russia that it provided false audits for Yukos between 2002 and 2004.
The Times, 29 December 2006

Mischon de Reya

Mishcon's Fraud Watch is published by the Corporate Investigations & Asset Recovery 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 runs both the Asset Protection & Recovery Network, made up of international legal fraud specialists, and the Financial Fraud Group, for risk and compliance officers.

This article is only intended as a general statement and no action should be taken in reliance on it without specific legal advice.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.