Financier Worldwide - Corporate Fraud Roundtable

Corporate Fraud roundtable discussion reprinted from November 2018 issue of Financier Worldwide magazine.

APP Cyber Fraud Commercial Litigators Perspective

Shail Patel discusses the APP ("authorised push payment") fraud and related cyber frauds and how they have featured heavily in the financial and mainstream press lately. These scams involve the victim being tricked into making an instant electronic payment to fraudsters instead of the intended recipient.

‘Hodl’, ‘Hit the moon’, ‘Lambo’, ‘Miners’

Brown Rudnick’s Jane Colston considers asset tracing and enforcement across the blockchain in a new article published by Legal Business.

Defeating Dissipation - Recent Legal Developments

Jon Felce of PCB Litigation LLP examines developments in relation to freezing orders, contempt of court, new causes of action, the use of insolvency procedures and enforcement.

Property Alliance Group v RBS (2018) EWCA Civ 355

Shail Patel discusses the Court of Appeal’s decision in Property Alliance Group v RBS (2018) EWCA Civ 355. The outcome is a decisive victory for RBS over PAG. However, the door has undoubtedly been opened for other potential claimants. While the CA also made some significant findings on the bank's advisory duties and implied contractual terms, this article focuses on LIBOR and benchmarks. Many negligence and contract claims arising out of swaps mis-selling are likely to be statute barred under the Limitation Act 1980.

Legal update - Bilta Ors v RBS Anor

Alan Sheeley discusses the law regarding the privileged status of investigations has been in flux since Serious Fraud Office (SFO) v Eurasian Natural Resources Corporation Ltd (2017) EWHC 1017 (QB) (“ENRC”) was handed down in May 2017. The recent decision of Bilta & Ors v RBS & Anor (2017) EWHC 3535 (Ch) (“Bilta”), in which Pinsent Masons acted on behalf of RBS, is therefore an important decision as it confirms that ENRC is not a determinative statement of principle as privilege can apply to investigations on the right set of facts.

Blockchain and ICOs

Jane Colston speaks to CDR about the importance of asking defendants to disclose virtual currencies, like Bitcoin, in freezing, disclosure or search orders. CDR also reported  on Michael Booth QC's recent talk to the CFLA about the role of technology in fraud investigations. First published in:

Artificial Intelligence: Change before you have to

Jane Colston and Louise Verrill of Brown Rudnick LLP report on the use of Artificial Intelligence in the insolvency profession. This article was originally published by Eurofenix

First ever search order against a third party granted: the Chabra moment for search orders

Trevor Mascarenhas and Jon Felce of PCB Litigation LLP consider Abela and others v Baadarani (Third Party: Fakih) [2017] EWHC 269 (Ch), where a search order was granted against a third party.

Notification Injunction: Belgravia, Boats and Bootstraps

Jane Colston and Roger Kennell of Brown Rudnick LLP consider Holyoake v Candy [2016] EWHC 970 (Ch) in which the Chancery Division granted a “notification injunction” requiring subsequent disclosure of the disposal of property assets rather than a full freezing order preventing their disposal in the first place. The decision raises interesting questions about what must be shown by a claimant to get such an injunction, whether risk of dissipation should be proven to a lower standard for the lesser remedy, and whether fortification of the undertaking in damages by the claimant is required.

We welcome all contributions, short or long, in relation to recent developments in commercial fraud and any other topics that may be of interest to members.

If you would like to submit an article, please email Charles Thomson.

Next event

Thu, 13 Jun 2019 @ 8:15 am - 9:15 am

“Breakfast Powwow” for Members

4 roundtables of CFLA members discussing & sharing know-how over breakfast on three topical fraud issues. Tables move after 15 mins. Free to members. First come, first served.