The Fraud Board

The Fraud Board

Commentary on current cases, news stories and legal developments in international business crime and regulation

McGuireWoods’ London Government, Regulatory and Criminal Investigations Group


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Civil fraud damages claims begin in the UK following a corruption prosecution by the SFO and the DOJ against Innospec and others

Civil fraud jurisdiction, Corruption, Fraud, Serious Fraud Office
In a recent decision of Mr Justice Flaux in the case Jalal Bezee Mejel Al-Gaood & Partner v Innospec Limited and Others, the Claimants sued for damages which they claimed arose as a result of the Defendants having bribed the Iraqi Ministry of Oil (“MOO”) to purchase their chemical products, TEL.  The claim for damages… Continue Reading

English Court grants worldwide freezing order in support of London arbitration where assets are outside the UK

Civil fraud jurisdiction
A recent decision by the Commercial Court in the case of U&M Mining Zambia Limited v Konkola Copper Mines Plc [2014] All ER (D) 136 in which the Claimant’s application to continue a worldwide freezing order over the assets of the Respondent, Konkola, was granted, is significant for those conducting international arbitrations in London. Worldwide… Continue Reading

The Director of the SFO criticises corporations which commission internal investigations before self-reporting

Corruption, Enforcement, Fraud, Self-reporting
The engagement of external lawyers by corporations is still the safest and best option as those external law firms not only have their own firm's professional brand reputation to protect in giving full honest and fair reports, but the lawyers who form those organisations all owe personal duties to the court not to mislead it. Their report would have been prepared in the knowledge that, if disclosed to the SFO as part of a self-reporting procedure, it could end up being scrutinised by the court.… Continue Reading

The Long Arm of British Anti-Corruption Laws and the impact on individual defendants

Corruption, Enforcement, Jurisdiction, Senior Executives, Settlement
The inference to be made from this court order is that the crime of corruption really doesn't pay, especially for board level directors, and that individuals who get involved in (or permit existing arrangements to continue unabated) international corruption are at risk of being prosecuted in one or more jurisdictions around the world and are liable to lengthy terms of imprisonment as well as very substantial penalties and orders for disgorgement of payments… Continue Reading

Besso Limited fined by the FCA for anti-bribery systems failings

Associated persons, Compliance programmes, Corruption, Due diligence, Enforcement, Financial Conduct Authority, Guidance, Public officials
The Besso case reflects our own experience that there are still many small and medium sized companies who have still not taken, four years after the Bribery Act was enacted, the far-reaching provisions of the Bribery Act sufficiently seriously.… Continue Reading

Weatherford’s “loose controls and anaemic compliance” leads to $253 million bribery and sanctions penalties

Compliance programmes, Corruption, Deferred prosecution, Due diligence, Enforcement, FCPA, Gifts & hospitality, Guidance, Public officials, Settlement
This is a salutary tale for any companies, wherever they are situated in the world, which still think that their illegal activities will never be discovered. Usually it is only a question of time, and the penalties can be huge, as well as the impact on the business in sorting it all out.… Continue Reading

Anticorruption compliance is more than adopting a policy

Compliance programmes, Corruption, Due diligence, Enforcement, Guidance, Jurisdiction, Senior Executives
When the prosecutors come knocking on the door with a search warrant, one of the first things they will look for is evidence as to whether the company adhered to and fulfilled the six principles of adequate procedures. If one or more of those six steps is missing, the company may have no defence to a prosecution… Continue Reading