UK Economic Crime Group: Enforcement Update - September 3, 2019

Executive Summary

In this edition of the UK Enforcement newsletter we provide an update on recent anti-corruption, fraud and bribery developments in the UK. We focus on enforcement actions by the Serious Fraud Office (SFO), National Crime Agency (NCA) and the Financial Conduct Authority (FCA). We also look at government policy issues including documents published by the SFO and the National Audit Office (NAO).

In terms of enforcement, we consider:

The prosecution of a director of ALM Services UK Ltd for failure to produce documents required by a Section 2 Notice; Three former Barclays' executives facing a retrial, including new charges, in relation to the 2008 financial crisis; Court approval of the deferred prosecution agreement between the SFO and Serco Geographix Ltd; Former Deutsche Bank trader acquitted over rigging of Euribor; NCA secures £100 million Account Freezing Order and an Unexplained Wealth Order covering £10 million of property; Updates related to the SFO's investigation into Unaoil; Reporting restrictions lifted in relation to 2016 deferred prosecution agreement, as XYZ Ltd is revealed to be Sarclad Ltd; SFO opens investigation into De La Rue plc; and Richard Baldwin's conviction for money laundering revealed after reporting restrictions lifted, following the FCA's Operation Tabernula. In relation to government policy:

NAO issues its report on tackling serious and organised crime; Prime Minister orders a sentencing review to consider automatic release for longer sentences, while UK criminal prosecutions are at an all-time low; and The SFO publishes guidance on corporate cooperation. Enforcement Actions

Prosecution of director of ALM Services UK Ltd for failure to produce documents

On 14 June 2019, Anna Machkevitch was charged with failure to comply with a notice issued under Section 2 of the Criminal Justice Act 1987 (a Section 2 Notice) in relation to the SFO's investigation of Eurasian Natural Resource Cooperation (ENRC). A Section 2 Notice compels the person it is addressed to, to produce documents or other information to the SFO. The offence of failure to comply with a Section 2 Notice is punishable by a maximum six-month prison term and an unlimited fine.

Ms Machkevitch is the director of London-based ALM Services and the Machkevitch Foundation, as well as being the daughter of Alexander Machkevitch, one of the three founders of ENRC. Ms Machkevitch had been provided with a Section 2 Notice in connection with the current SFO investigation into ENRC. The SFO alleges that in January 2019 she failed to supply documents required by the SFO, contrary to a Section 2 Notice. On 5 July 2019, appearing at Westminster Magistrates' Court, she pleaded not guilty to the offence. A date has not yet been set for her full trial.

Barclays' executives facing re-trial of fraud charges and new charges

As we reported previously, the trial of four senior Barclays' executives was stopped when the jury was discharged in April 2019, following a decision by Mr Justice Robert Jay that there was insufficient evidence against the defendants. Reporting restrictions remain in place in respect of this case.

On 21 June 2019, the Court of Appeal declined an application by the SFO to overturn the decision by Mr Justice Jay that there was insufficient evidence against the former CEO of Barclays, John Varley. However, the application was approved in relation to the three other defendants, Richard Boath, Roger Jenkins and Tom Kalaris, and they will face a retrial scheduled to commence on 7 October 2019 at the Crown Court at Southwark.

In addition, on 1 August 2019, the SFO was given permission to amend its indictment against the three defendants, so that at their retrial they will now face substantive fraud charges, in addition to those of conspiracy to commit fraud by false representations.

SFO announces DPA reached with Serco


To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT