Legal News

What were the key messages from this inaugural speech by Director Ephgrave? Mr Ephgrave outlined a vision of an SFO that is more proactive, quicker, bolder and more collaborative. Citing recent successes while acknowledging unspecified ‘challenges’, he committed to a larger role in the UK’s fight against fraud, to working faster and more efficiently (including using machine learning), and to becoming a ‘collaborator of choice’ with fellow law enforcement agencies ( LEAs) and others. He spoke of a ‘visceral’ determination to confront fraud harming individuals and the public purse. When questioned, he did not dispute that this could mean less emphasis on fraud against private businesses and international corruption, although he stressed those cases would still be pursued. In contrast to his predecessor, he emphasised operating within the current system, while proposing changes such as payments to...

In this issue: Criminal liability Investigating criminal conduct Criminal procedure and evidence Proceeds of crime Bribery, corruption, sanctions and export controls Environmental offences Financial services and pensions offences Fraud, forgery, tax and theft offences Health and safety and corporate manslaughter offences Local authority prosecutions International Other corporate crime news Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Criminal liability Criminal Justice Bill—what changes are expected? Brought before Parliament on 14 November 2023, the latest Criminal Justice Bill, while not chiefly aimed at corporate crime, finalises the most far-reaching overhaul of criminal corporate liability in half a century and includes further measures with notable consequences for corporates. Emily Agnoli, partner, and Jon Malik, supervising associate, at Simmons & Simmons, explore the Bill’s...

This piece considers these questions by exploring the scope—and the inherent ambiguity—of the new offence... The new offence Section 199 of the Economic Crime and Corporate Transparency Act 2023 ( ECCTA 2023) states that a large organisation commits the failure to prevent fraud offence if it does not stop an associated person from committing a fraud offence, where that associated person intends to benefit, directly or indirectly, either: the organisation the person to whom, or to whose subsidiary, the associated person provides services on the organisation’s behalf Qualifying fraud offences are set out in ECCTA 2023, Schedule 13. An organisation is not guilty of the failure to prevent fraud offence if it is, or is intended to be, the victim of the fraud itself. There is a defence where, at the time the fraud offence occurred, the organisation had reasonable fraud...

Indeed, gathering and examining business data have long formed a core part of the government’s investigative and prosecutorial toolkit in practice. Moreover, with the surge in analysis-ready datasets in recent years, collection technologies have multiplied rapidly and grown markedly more advanced. Notably, across the last 25 years the government has escalated its use of data analytics to spot and probe suspected criminal or civil fraud offences, and thereafter to bring prosecutions. Accordingly, the 29 November 2023 announcement by US Department of Justice ( DOJ) policymakers that, for the first time, they are harnessing data analytics to proactively detect and pursue offences in foreign corruption matters was a logical evolution of investigative practice. History of data analytics in federal criminal and civil fraud enforcement The government has relied on data collection and data analysis for many years to investigate and prosecute crime as well. As early as 1914,...

Lynch faces a California trial in March 2024 over alleged fraud linked to the US$11.7bn disposal of his software company, Autonomy, to Hewlett- Packard ( HP). The founder filed a lawsuit against the anti-corruption body on 31 January 2024, following its refusal to release all the personal data he had sought from its files, in full. An SFO spokesperson stated on 19 February 2024 that the SFO would provide certain materials, though not the entirety of them, confirming only partial disclosure. Lynch’s lawyers will assess the papers before determining whether to press ahead with the claim, scheduled for a hearing in the English High Court in April 2024. The SFO concluded that the mutual legal assistance process in Lynch’s criminal matter was not confidential. He issued a Part 8 data protection claim against the SFO, requesting every exchange between the agency and the US...

Economic Crime and Corporate Transparency Act 2023 ( ECCTA 2023) Through the Economic Crime and Corporate Transparency Act 2023 ( ECCTA 2023), reforms have taken hold, shifting corporate fault from the old ‘directing mind and will’ test to a ‘senior manager’ benchmark. Sara Lawson KC confirmed that the SFO is actively weighing adjustments to the identification principle, which permits the agency to attribute criminal responsibility to companies for individuals’ misconduct. Addressing a white-collar defence gathering in London, Lawson described the changes — which make it easier for prosecutors to pursue companies for economic crimes — as 'a very nice Christmas present for us'. Although the application of the revised threshold is expected to face court challenges, the measures 'should have a huge effect for us', she added. The ECCTA 2023 displaces the long-established approach with the new senior manager model for corporate...

What is the scope of the Bill and which are the key provisions in the Bill which are of relevance to corporate crime lawyers? The Bill spans an unusually broad remit, addressing multiple strands of governmental policy. A large share of its proposals do not concern economic or corporate offending—for instance, clauses aimed at tackling ‘nuisance’ begging and broadening offences linked to encouraging or aiding self-harm. Even so, it also advances several reforms of relevance to corporate crime practitioners, some of which are of pivotal importance for corporate crime lawyers especially......

Ephgrave, formerly an assistant commissioner at the Metropolitan Police, has set in motion three investigations and overseen a number of arrests since replacing ex-director Lisa Osofsky in September 2023. Yet his remarks on 13 February 2024 at the Royal United Services Institute mark the first real sign of how his five-year tenure as director will unfold. Here, Law360 unpicks his first public address to identify his priorities and the direction of travel for the SFO under his stewardship. Faster, quicker, bolder It was close to a warning for the dozens of defence solicitors present: expect the SFO to force more doors, Ephgrave indicated. His logic was simple—swift action builds momentum, gets people into interview rooms, lets investigators meet their gaze and ask hard questions, apply pressure, search homes and crack the evidence; why wait? He vowed the SFO would be ‘faster’, ‘quicker’, ‘bolder’ and ‘more...

A former Goldman Sachs banker has been found guilty on six counts of insider dealing and three of fraud by false representation. At Southwark Crown Court, 35-year-old Mohammed Zina was convicted of exploiting inside information to execute trades and make more than £140,000 ( US$176,000) from shares in six companies between July 2016 and November 2017. After five days of deliberation, jurors returned unanimous verdicts on the six insider dealing counts and three for fraud by false representation. His elder brother, Suhail, a former Clifford Chance solicitor, was acquitted of similar allegations at the same court on 5 February 2024. Zina, smartly dressed in a black suit, held his head in his hands as the jury delivered their decisions. Judge Tony Baumgartner remanded him in custody ahead of sentencing on 9 February 2024 at Southwark Crown Court......

In this issue Investigating criminal conduct Criminal procedure and evidence Sentencing Bribery, corruption, sanctions and export controls Consumer protection and cartels Environmental offences Financial services and pensions offences Fraud, forgery, tax and theft offences Goods vehicle licensing Health and safety and corporate manslaughter offences Insolvency and Companies Act offences Local authority prosecutions Money laundering International Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct SFO Director gives first speech The SFO has released the address delivered by its director, Nick Ephgrave, at the Royal United Services Institute ( RUSI) on 13 February 2024. He reviewed the SFO’s history, outlined its remit, and reflected on the challenges it encounters. Ephgrave confirmed the SFO will take a bigger role in the...

The change, due to take effect in April, is designed to reflect ‘historic inflation’ accumulated since fees were last increased in 2011, the department stated publicly on 12 February 2024 following its wide-ranging consultation. The measure is forecast to generate somewhere between £170,000 and £210,000 annually. ‘ These uplifts aim to remedy the sharp erosion in the real-terms value of fees and to deliver extra funding for the Supreme Court’s administration,’ the ministry also added. In addition to introducing a new charge for applying for permission to appeal within the proposed framework, the amount payable to lodge a notice objecting to an appeal is set to rise from......

The consultation focused on five policy areas: presentation of pricing information, hidden fees and drip pricing prohibiting bogus, misleading or deceptive reviews the function and responsibilities of online platforms and their professional diligence duties online interface orders further amendments to the list of commercial practices in all circumstances deemed unfair, and private redress, in the Digital Markets, Competition and Consumers Bill ( DMCC Bill) The government has now confirmed that it will be introducing some revisions to the DMCC Bill as it moves forward through the legislative process, although certain issues will be left for additional consideration. What are the key takeaways from the Government Response for traders selling goods and services to consumers? The government plans to legislate on fake reviews, drip pricing and unit pricing. Traders should reassess how they request and publish product reviews, and ensure that overall and unit...

Southwark Crown Court: Judge Philip Bartle KC sentences Narinder Sandhu Judge Philip Bartle KC sentenced Narinder Sandhu to a custodial term at Southwark Crown Court. His brother, Parmjeet Sandhu, and postage logistics director James Mooney received suspended terms for cheating the mail service. In 2023, the trio admitted fraud and conspiracy after prosecutors said they had exploited Royal Mail's self-declaration system for major postage-service firms by undervaluing consignments and keeping the difference. The judge said the men achieved 'substantial personal gain as a result of their involvement' in the fraud. Identified as the 'leading' participant, Narinder drew a £1m salary, the court was told. He owned a mansion outside London, a Rolls- Royce, a Bentley and sports memorabilia. Parmjeet, whom Judge Bartle described as 'middle-management', took a £495,000 salary for one year and held £2.6m in property, the judge added. Both men, the judge...

In this issue: Investigating criminal conduct Legal privilege in criminal cases Criminal procedure and evidence Bribery, corruption, sanctions and export controls Cybercrime and data protection offences Environmental offences Financial services and pensions offences Health and safety and corporate manslaughter offences International Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q& As Useful information Investigating criminal conduct UK fraud agency's independence is safe despite new tasking power, Parliament told The UK's Serious Fraud Office ( SFO) will not forfeit its independence under a legal change that could oblige it to pursue specified inquiries, as any such powers would be kept in the 'back pocket', Parliament has heard. The government plans to enable the National Crime Agency ( NCA) to 'direct' the SFO to take on fraud,...

UK banks Lloyds and Santander have been contacted by the FCA following allegations that they were used by Iranian companies to move money around the world in breach of sanctions rules. According to a Financial Times article dated 4 February 2024, the two major lenders provided accounts to UK shell companies secretly controlled by the sanctioned Iranian petrochemicals group, Petrochemical Commercial Company. PCC and its subsidiary, PCC UK, have been under US sanctions since 2018, after claims they were used to raise hundreds of millions of dollars for Iran’s Revolutionary Guards and for allegedly working with Russian intelligence agencies. On 5 February 2024, the FCA said it was in touch with both banks and the UK’s sanctions enforcer regarding the allegations. It noted it was aware of the reports and, as expected, was engaging with the firms and the Office of Financial Sanctions...

A European Commission spokeswoman, Anitta Hipper, declined to address Law360’s query about a Belgian plan to treat frozen, immobilised Russian state holdings as security for borrowing. Proceeds would fund Ukraine’s rebuilding following Russia’s devastating, full-scale assault on the country. “ Talks are under way within the G7 framework, centred on the potential seizure of immobilised assets of the Russian central bank,” Hipper wrote in an email. “ The Commission is prepared to examine the different options under consideration. What matters is that any approach can be carried out on a robust legal basis and command wide international backing,” she added. She offered no further detail at present......

What is the US Foreign Extortion Prevention Act (or FEPA) and when did it come into force? On 22 December 2023, President Biden enacted the FEPA, after its approval by the US Congress as part of the Fiscal Year 2024 national defence authorisation legislation. The law reflects the President’s sustained commitment to confronting global corruption as a national security priority. It requires the US Attorney General to deliver an annual, publicly accessible report to Congress summarising major Department of Justice ( DOJ) actions under FEPA, enabling Congress (and the public) to assess the effectiveness of the DOJ’s enforcement efforts year on year. That disclosure duty is expected to heighten pressure on the DOJ to bring cases in practice. FEPA widens the scope and reach of US anti‑bribery and corruption laws by expanding bribery offences to capture the ‘demand...

On 2 February 2024, the FCA confirmed jurors at Southwark Crown Court were directed by Judge Tony Baumgartner to return a not guilty verdict, thereby acquitting Suhail Zina accordingly. Aged 36, Suhail had been alleged to have executed trades for his brother, Goldman Sachs banker Mohammed Zina, on the basis that his younger sibling held confidential, price-sensitive information that was not in the possession of the market. ' We can confirm that the case against Suhail Zina on all counts is not proceeding,' an FCA spokesperson said 5 February 2024. ' We are unable to comment further owing to ongoing legal proceedings.' The FCA's case against 35-year-old Mohammed Zina continues......

Al Sadeq v Dechert LLP and others [2024] EWCA Civ 28 What are the practical implications of this case? This judgment is must-read material for practitioners dependent on LPP, acting as a stark reminder of the dangers of misapprehending its limits. It is especially pertinent to those undertaking disclosure where LPP is claimed but attacked via the iniquity exception. It supplies not merely a thorough treatment of the governing principles and authorities, but also hands-on direction on the proper conduct of a disclosure review—and, if required, its litigation—when wrongdoing is said to be in play. Accordingly, it serves as both warning and roadmap for practitioners managing privilege disputes in complex disclosure, clarifying expectations, recommended steps, and approaches where alleged wrongdoing is in issue. What was the background? From 2010 to 2014, the claimant, Mr Al Sadeq, served first as a senior lawyer and...

Transparency International's 2023 Corruption Perceptions Index Transparency International’s 2023 Corruption Perceptions Index largely echoes previous instalments from the Berlin-based anti-corruption organisation, once more concluding that the majority of the world’s jurisdictions are stuck in a corruption-fighting rut and not moving forward at the pace hoped for. Gary Kalman, executive director of Transparency International US, told Law360 the results highlight the need to keep pressing these issues, as progress remains below expectations. The study assesses perceived domestic corruption in 180 countries and sets each on a 100-point scale, where higher marks indicate lower levels of corruption. Scores draw on datasets from 13 institutions, among them the World Bank and the World Economic Forum. The index captures a range of abuses, including bribery, political corruption, diversion of public funds, effective criminal prosecution of corrupt officials, and legal protections for...