Corporate Crime & Compliance UK

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ENRC Settlement Shows SFO Ready To Draw Line Under Past

The Serious Fraud Office's recent settlement ending litigation with Eurasian Natural Resources Corp. over alleged misconduct by its officials sidesteps weeks of awkward testimony to free the agency to pursue its growing caseload while drawing another line under its blighted investigation into the miner.
January 17, 2025
UK Parliament Calls New Treasury Unit 'Poorly Defined'

A new HM Treasury office set up to scrutinize fiscal policy lacks staff and its purpose is poorly defined, which means it could duplicate the work of other organizations, the U.K. Parliament's Treasury Select Committee said in a report Sunday.
January 17, 2025
Ex-Mozambique Finance Head Gets 8½ Years In $2B Bond Rap

A Brooklyn federal judge sentenced Mozambique's former finance minister to 8½ years in prison Friday for facilitating a corrupt $2 billion loans-for-bribes deal, ordering him to forfeit $7 million and imposing time beyond the six years the defendant has been incarcerated.
January 17, 2025
Conveyancing Exec Misappropriated £110K Of Client Money

A former conveyancing executive has been barred from working for a law firm after she misappropriated nearly £110,000 ($133,853) of client money, the Solicitors Regulation Authority said Friday.
January 17, 2025
Jones Day Hires Ex-Justice Secretary Alex Chalk As Partner

Jones Day said Friday it has hired former justice secretary Alex Chalk KC as a partner in its London office, boosting its global disputes practice with both legal and political experience.
January 17, 2025
Ex-SFO HR Head Claims Bosses Forced Him Out

The former head of human resources at the Serious Fraud Office has sued the authority for unfair dismissal, telling a tribunal that executives forced him to quit after they "consistently undermined and sidelined" him before hiring someone else to take on his duties.
January 17, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the family of the late chairman of Leicester City FC sue a helicopter manufacturer for £2.15 billion ($2.63 billion), Vivienne Westwood bring a copyright claim against the late designer's foundation and blockchain giant Tether file a new claim in its ongoing dispute with crypto trading firm Swan Bitcoin. Here, Law360 looks at these and other new claims in the U.K.
January 17, 2025
SFO Secures 1st UWO Against Convicted Lawyer's Ex-Wife

A judge ordered the ex-wife of solicitor imprisoned for defrauding investors on Friday to explain how she acquired a house in northwest England after granting the Serious Fraud Office its first-ever unexplained wealth order
January 17, 2025
Scottish Power Loses £28M Redress Case Against HMRC

Scottish Power lost its appeal against HM Revenue and Customs on Friday, as a tribunal ruled that the energy company was wrong to argue that just over £28 million ($34 million) in redress payments it made after being investigated for regulatory failures was tax-deductible.
January 17, 2025
Oligarch Loses $14B Claim Over Russian Asset-Stripping Plot

Imprisoned oligarch Ziyavudin Magomedov's $14 billion claim against Transneft, Rostatom, TPG and others over an alleged Russian state-led conspiracy to strip his assets in two major port operators was struck out at a London court on Friday.
January 16, 2025
UK CMA Settles Sports Betting Company Divestiture

Spreadex has appealed an order from the U.K.'s competition enforcer commanding it to sell off a sports betting company that it acquired in 2023, but in the meantime, it is taking all the necessary steps to comply with the agency's order.
January 16, 2025
Apple CFO Challenges App Store Profit Claim In £1.5B Trial

Apple's chief financial officer told a London antitrust tribunal Thursday that the profitability of the App Store could not be meaningfully measured as he gave evidence in a £1.5 billion ($1.8 billion) class action against the tech giant.
January 16, 2025
Trader Can't Dodge US Extradition Over $3M Ponzi Fraud

A London judge approved the U.S. extradition of a man accused of operating a $3.3 million Ponzi scheme, after finding the conditions at a New York prison are not so poor as to pose a "real risk" to his human rights.
January 16, 2025
Socialite Denies Using £200M Laundering Plot To Prop Up Biz

A socialite denied at trial Thursday that he was involved in a £200 million ($244 million) money laundering scheme that prosecutors say he used to create the illusion of success for his failing gold business.
January 16, 2025
Mega-Yacht Seizure Was 'Simply Unreasonable,' Oligarch Says

A Russian businessman urged Britain's highest court Thursday to overturn a government decision to detain his yacht in London in response to Russia's invasion of Ukraine, arguing that it was "simply unreasonable" to believe its seizure would pressure the Kremlin.
January 16, 2025
PrivatBank Founder Must Try To Revive Dissolved Companies

PrivatBank's co-founder, Gennadiy Bogolyubov, must stop "stonewalling" and try to restore several struck-off British Virgin Islands companies that held his assets ahead of a judgment on his role in an alleged $4.2 billion fraud, a London court ruled Thursday.
January 16, 2025
McDermott Adds Restructuring Pro In London

McDermott Will & Emery LLP has hired an experienced corporate finance, restructuring and insolvency specialist to its London team, as the firm deepens its bench strength amid another year forecast to be challenging for business.
January 15, 2025
HMRC Board Chair Calls Fiscal Rules Nonnegotiable

The U.K. government will not change course on its fiscal rules despite higher borrowing costs from worsening market conditions, the chair of the board of Britain's tax authority told Parliament's Treasury Committee on Wednesday.
January 15, 2025
Whistleblowing Engineer Wins Unfair Firing Claim

A chief engineer has won his claim that he was unfairly fired after raising concerns that a job to replace gas mains in London violated health and safety regulations.
January 15, 2025
Russia Appeals For State Immunity In $60B Yukos Case

Russia sought Wednesday to block former Yukos Oil investors from enforcing an almost $60 billion arbitration award, telling a London appeals court that English courts must consider its claim to state immunity afresh.
January 15, 2025
Socialite In £200M Laundering Trial Saw No 'Red Flags'

A socialite accused of being at the heart of a £200 million ($244 million) money laundering scheme said that he never intended to enter into "a criminal enterprise," as he testified at his trial on Wednesday.
January 15, 2025
Ex-Axiom Ince Execs Appear In Court Charged With Fraud

Five former leaders of Axiom Ince appeared at a London criminal court Wednesday accused of fraud and covering up wrongdoing during a regulatory probe into the collapse of the law firm with a hole of more than £60 million ($73 million) in its client accounts.
January 15, 2025
Solicitor General Backs More Money For SFO

The U.K.'s solicitor general on Wednesday voiced support for increasing funding for the Serious Fraud Office to close the resource gap between the agency and large corporations in response to criticism that the watchdog was backing away from the biggest cases after a string of setbacks in court.
January 15, 2025
Shvidler Says Arbitrary Sanctions 'Shatter' His Reputation

A billionaire sanctioned for his close ties to Roman Abramovich urged Britain's highest court on Wednesday to lift the measures in a landmark case that could redefine the government's financial crackdown on Russia after it invaded Ukraine.
January 15, 2025
Food Co. Says Ex-Director Moved Assets Amid Fraud Claim

A food product supplier has claimed a former director moved shares in a construction company to his wife and associates in the face of allegations of fraud and misrepresentation against him in the U.S. and London.
January 15, 2025
FCA Warns More Firms Are Avoiding Redress Obligations

The Financial Services Authority has warned that financial firms are increasingly trying to avoid compensating consumers for poor advice or products while they benefit from the assets of the business.

Editor's Picks

FCA's £29M Fine Of Starling Sends Wider Compliance Warning

The Financial Conduct Authority hit Starling Bank Ltd. with a £28.9 million ($38.4 million) fine on Wednesday for inadequate anti-money laundering and sanctions controls. This has sent a wider warning to companies that compliance levels must match growth.
NCA Ducks Litigation Risk In 1st Seizure Of Sanctioned Assets

The decision by the National Crime Agency to secure the forfeiture of the assets of a sanctioned Russian oligarch is a pragmatic victory that avoids the risk of setting a damaging legal precedent, lawyers say.
How 3 Firms Cleared 2 Ex-Autonomy Execs In HP Fraud Case

A California federal jury's rejection last week of fraud charges against the founder and former finance vice president of British software company Autonomy validated an approach by the defendants' three law firms — Steptoe, Clifford Chance and Bird Marella — to form a "seamless" collaboration throughout the trial, from jury selection to closing arguments.

Expert Analysis

Russian Bankruptcy Ruling Shows Importance Of Jurisdiction

The U.K. Supreme Court's recent decision not to assist a Russian receiver in Kireeva v. Bedzhamov will be of particular interest in cross-border insolvency proceedings, where attention must be paid to assets outside the jurisdiction, and to creditors, who must consider carefully where to apply for a bankruptcy order, say lawyers at McDermott.
Key Points From Trade Sanctions Office 'No-Russia' Guidance

The Office of Trade Sanctions Implementation’s recent guidance provides best practice suggestions that can help businesses mitigate the risk of their exports being targeted by Russian circumvention efforts, while noting that there is no one-size-fits-all approach to compliance, says Alexandra Melia at Steptoe.
How Board Directors Can Adapt To Shifting Governance Tides

With European Union regulatory initiatives trending toward a sharp focus on ESG reporting requirements and ramping up pressure on corporate boards, directors should play a more active part in ensuring business objectives are aligned with regulatory demands, says Kallia Gavela at Alvarez & Marsal.
How Listing Act Measures Will Modernize EU Capital Markets

The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
Forced Labor Imports Raise Criminal Risks For UK Retailers

Last summer’s London appeals court ruling applying the Proceeds of Crime Act to products made with forced labor, potential legislative reforms and recent BBC allegations about Chinese produce harvested by Uyghur detainees suggest British importers and retailers should increase scrutiny of their supply chains, says Ian Hargreaves at Quillon Law.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.
EU's AI Act May Lead To More M&A Arbitration

With the EU's Artificial Intelligence Act and its stiff penalties beginning to take effect, companies acquiring AI targets should pay close attention to the provisions in the dispute resolution clauses of their deal documents, say Nelson Goh at Pallas Partners and Benjamin Qiu at EKLJ.
A Look At PCAOB's Record-Breaking Enforcement In 2024

The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
Key Points From EU's Latest FDI Screening Regulation Review

The European Commission’s recent assessment of the Foreign Direct Investment Screening Regulation indicates that with strong control here to stay, precautionary filings are likely to remain necessary, and member states should prepare for greater rule alignment to reduce inefficiencies caused by a current lack of synchronization, say lawyers at Linklaters.
UK Businesses Need To Plan For Accessibility Act Compliance

With the European Accessibility Act’s compliance deadline approaching this June, U.K. businesses trading in the European Union need to think broadly in addressing its requirements to ensure equality of access to the digital world, says Louisa Chambers at Travers Smith.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.
Applying New FCA Guidance On Control Of Financial Firms

Buyers seeking to acquire or increase their stakes in U.K. financial services firms can streamline prudential review of their transactions by understanding the Financial Conduct Authority’s recently published guidance on updated change-in-control regulations, says Mark Chalmers at Davis Polk.
How Lawyers Can Work On Unmasking Beneficial Ownership

The Solicitors Regulation Authority's recent anti-money laundering report suggests that identifying ultimate beneficial owners in a transaction is one of the key day-to-day challenges that law firms face, and the solution lies in combining know-your-business processes with know-your-client verification, says Sam Ruback at Thirdfort.
Anticipating The UK's Top M&A Trends In 2025

Conversations with market participants are focusing on five key questions about 2025's transactional markets, ranging from issues of artificial intelligence, to the boom in takeovers and increased regulatory scrutiny, says Layla D’Monte at King & Spalding.
Takeaways On Freezing Injunctions After Dos Santos Ruling

The Court of Appeal's recent decision in dos Santos v. Unitel moved the needle in favor of applicants for freezing injunctions in two ways, say lawyers at Cooke Young.