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.
December 09, 2024
Lawyer Fined For Nondisclosures About Mafia-Linked Project

A partner at an Italian firm was fined £50,000 ($64,000) and reprimanded by a London legal disciplinary tribunal Monday after he admitted failing to declare previous findings made against him in Italy and the U.K. related to failed investments in a 'Ndrangheta mafia-linked real estate project.
December 09, 2024
Reckitt Investors To Test Class-Action Rules In Opioid Case

The Court of Appeal will consider on Tuesday whether Reckitt Benckiser shareholders and drug company Indivior can pursue litigation linked to America's opioid crisis as a "representative claim" that is similar to a U.S.-style class action.
December 09, 2024
Labour Appoints Hodge As New Anti-Corruption Czar

The U.K. government announced Monday that Margaret Hodge, a leading campaigner against illicit finance, has been appointed anti-corruption champion in a bid to foster a "hostile environment" for organized crime.
December 09, 2024
Jo Sidhu Committed Sexual Misconduct, Tribunal Finds

The former head of the Criminal Bar Association, Jo Sidhu KC, was found on Monday to have committed sexual misconduct against a young female aspiring lawyer while being cleared of charges over exchanging "disgusting" sexual messages with another.
December 09, 2024
Audit Watchdog Floats Revised Rules For Pension Standards

Britain's accounting watchdog on Monday proposed a series of revisions to the actuarial rules used in the retirement savings sector to reflect recent changes in pension regulations and skyrocketing funding levels of schemes in the U.K.
December 09, 2024
Ex-BVI Fund Boss Challenges $400M Ponzi Scheme Debt

The former director of a defunct investment fund urged the top appeals court for U.K. overseas territories on Monday to allow him to challenge a decision by its liquidators to accept a $400 million demand by the bankrupt company behind a multibillion-dollar Ponzi scheme.
December 06, 2024
Allianz Exec Avoids Prison For $7B Investor Fraud

A New York federal judge on Friday declined to sentence a former portfolio manager for Allianz SE's U.S. unit to any time in prison for lying to investors about the riskiness of a group of private investment funds that lost over $7 billion when the COVID-19 pandemic hit.
December 06, 2024
Barclays Investors Get Initial OK For $19M Overissuance Deal

A New York federal judge Friday granted the first green light to a $19.5 million settlement for a class of investors who bought Barclays PLC securities and then claimed the banking giant misled them about its internal controls before selling more than $17.6 billion in securities over its maximum registered amount.
December 06, 2024
Ex-Cambridge Analytica Exec Beats £16M Claim Over Collapse

The former chief executive of Cambridge Analytica on Friday beat a £16 million ($20.4 million) claim that he was responsible for its downfall, while also convincing a London judge that a linked company owes him $12 million.
December 06, 2024
Disbarred Solicitor Can't Sue Over Inn's Rejection, BSB Says

A disbarred solicitor cannot sue over his failed applications to join a barristers' inn because he already appealed the same claim to the High Court, the Bar Standards Board argued to an employment tribunal Friday in a bid to get his disability discrimination case dismissed.
December 06, 2024
UK Authorities Say Banker's Rights Safe In US Extradition

U.K. and U.S. authorities urged a pair of London judges on Friday to deny an Austrian banker's bid to overturn a decision allowing his extradition on money laundering charges linked to his alleged role in a massive Brazilian corruption scandal, saying prosecutors would abide by extradition treaties.
December 06, 2024
Car-Leasing Execs Deny Fraud Charges In £88 million Case

Two directors of a failed car leasing group denied fraud charges in a London court Friday in the face of a prosecution brought by the Serious Fraud Office, which says that their allegedly fraudulent statements attracted £88 million ($112 million) from investors.
December 06, 2024
Civil Service Regulator To Face Whistleblower's Case

An employment judge has reinstated an employee's whistleblowing complaints against the Civil Service Commission, after conceding that he hadn't fully considered some of the evidence at first glance.
December 06, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Burberry file a copyright claim against discount store B&M, the former owner of Charlton Athletic file a debt claim against the football club, and British Airways and the U.K. government face a class action brought by flight passengers taken hostage at the start of the First Gulf War. Here, Law360 looks at these and other new claims in the U.K.
December 06, 2024
New Labor Regulator 'More Than Sum Of Parts,' Creators Say

The U.K.'s proposed Fair Work Agency will be "more than the sum of its parts," the heads of the labor enforcement bodies being absorbed to form the new super-regulator say.
December 06, 2024
SRA Seeks To Be Joined As Creditor After Axiom Collapse

The English solicitors' watchdog asked a London court on Friday to allow it to be added to the list of creditors to Axiom Ince Ltd., the law firm that collapsed after its managing partner allegedly misappropriated £65 million ($83 million) of client money.
December 06, 2024
Court Of Appeal Takes 'Straitjacket' Off Shell Oil Spill Claims

U.K. judges should not force claimants into a "straitjacket" of arguing their case in a particular way, the Court of Appeal ruled Friday, as it delivered its reasons for siding with Nigerian communities suing Shell over oil spills.
December 06, 2024
Businessman Owing £80M Gets Prison For Obstructing SFO

A London court sentenced a businessman already serving time for fraud to an additional 13 months in prison Friday for obstructing investigators trying to claw back some of the £80 million ($102 million) he owes for stealing from a software company.
December 06, 2024
FCA Bosses To Face Treasury Panel After Bruising Month

The Financial Conduct Authority's top brass will be quizzed by an influential panel of lawmakers on Tuesday, hard on the heels of a series of setbacks that saw the regulator rowing back on controversial reforms and called "incompetent" in a parliamentary review.
December 05, 2024
CAT OKs 2nd Settlement In Car Delivery Class Action

Britain's antitrust tribunal approved settlements Wednesday worth £37.3 million ($47.3 million) from two defendants in a car delivery class after determining that the uncertainty around the outcome of an upcoming trial justified the sign-off.
December 05, 2024
HMRC Wins Freezing Order Over Alleged £171M Tax Fraud

A court imposed a freezing order against three British businesses on Thursday after the U.K. tax authority accused them of orchestrating a £171 million ($218 million) National Insurance fraud.
December 05, 2024
Gold Trader Denies Knowing Of £200M Laundering Scheme

The former director of a gold trading business has denied any knowledge of a £200 million ($255 million) money laundering scheme as he testified at a criminal trial on Thursday that the business needed informal arrangements to get access to ready cash.
December 05, 2024
French Antitrust Regulator Fines Airlines €14.6M For Collusion

France's competition authority has hit two airlines with fines totaling €14.6 million ($15.3 million) after it concluded that they had colluded to inflate ticket prices while reducing services for "captive customers" on French Caribbean islands.
December 05, 2024
Solaris Says Binance Can't Use AML Gaps To Exit €144M Deal

Online banking group Solaris has rejected Binance's defense to its €144 million ($152 million) claim over a collapsed cryptocurrency debit card scheme, arguing that any alleged breaches of anti-money laundering rules did not entitle the global exchange operator to end the deal.
December 04, 2024
Russian Boat Leaser Sues Charter Guarantors For $60M

A Russian state-owned boat leasing company has sued four Cypriot businesses for more than $60 million, claiming they promised to cover the cost of charters that were wrongfully terminated in the wake of sanctions on Russian companies.

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

Takeaways From EU's Draft AI Code Of Practice

The European Union AI Office’s recently published first draft of the General-Purpose AI Code of Practice sheds some welcome light on which Artificial Intelligence Act compliance issues the office finds particularly knotty and, importantly, acknowledges where further guidance will be necessary, say lawyers at Akin.
The Rising Tide Of EU Antitrust Enforcement In Pharma

The European Commission’s recent record-breaking €463 million fine of Teva for abusing its dominant position confirms that European Union competition law enforcement in the pharmaceutical sector remains a priority, with infringements drawing serious financial exposure, say lawyers at Cooley.
Looking Back On 2024's Competition Law Issues For GenAI

With inherent uncertainties in generative artificial intelligence raising antitrust issues that attract competition authorities' attention, the 2024 uptick in transaction reviews demonstrates that regulators are vigilant about the possibility that markets may tip in favor of large existing players, say lawyers at McDermott.
UK Bill Aims To Make Better Use Of Data Across Economy

The new Data Bill’s practical improvements to data schemes and certification systems will be welcomed by online service providers, but organizations need to consider the conditions and whether compliance will entail technical operational changes, say lawyers at Osborne Clarke.
The EU AI Act's Impact On Global Financial Regulation

The European Union’s new Artificial Intelligence Act, representing lawmakers’ first comprehensive attempt to regulate AI and giving special attention to the financial services sector, hopes to influence global legal and regulatory frameworks to maintain access to the EU market, say lawyers at Goodwin.
Cross Market Drill Highlights Operational Resilience Priorities

The U.K.’s recent cross-market major infrastructure failure simulation exercise, demonstrates that operational resilience of the financial sector is high on the regulatory agenda, and the findings should ensure that the sector develops collective capabilities to deliver improvements, say lawyers at Taylor Wessing.
Update On Timings Key For Online Safety Act Compliance

The Office of Communications’ recent update on Online Safety Act deadlines is significant because applicability of the act has been contingent on this guidance, and with clarification of enforcement details, organizations can now prepare for their risk assessment, say lawyers at Bird & Bird.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
Online Safety Act Heightens Duties Of Social Media Platforms

The Office of Communications’ latest update on how it is implementing the Online Safety Act is part of a wider evolving debate, but while social media platforms wait for the law to take full effect, they can focus on establishing clear online safety policies, training programs for staff and proactive engagement with regulators, says Dan Adams at Arbor Law.
Gov't Fraud Prevention Guide Proves To Be A Damp Squib

The Home Office’s recent guide to the Economic Crime Act’s failure to prevent fraud offense goes little further than offering broad suggestions, signaling the Serious Fraud Office’s encouragement of companies to self-police rather than an intention to pursue fraud allegations to trial, say lawyers at BCL Solicitors.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
EU Enviro Directive Compliance Must Be A Priority For CEOs

The new European Union Environmental Crime Directive makes clear that criminal liability of a company for causing environmental damage does not preclude proceedings being brought against individuals who aid and abet, including CEOs, board members and other corporate leaders, say lawyers at Crowell & Moring.
New Offense Expands Liability For Corporate Enviro Fraud

The Economic Crime Act's new corporate fraud offense — for which the Home Office recently released guidance — underscores the U.K.'s commitment to hold companies accountable on environmental grounds, and in lowering the bar for establishing liability, offers claimants a wider set of tools to wield against multinational entities, say lawyers at Bracewell.
CMA Heat Maps Call Attention To Warning Letters

The Competition and Markets Authority's first heat maps illustrating the location of warning letters sent to businesses are intended to increase awareness of the letters, and provide new information that reflects distribution and density across the U.K., says Matthew Hall at McGuireWoods.