Corporate Crime & Compliance UK

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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.
August 24, 2024
Italian Prosecutors Open Criminal Probe Into Yacht Sinking

Italian prosecutors said Saturday that they have opened a criminal investigation into the sinking of a superyacht that claimed the lives of seven people including a partner at Clifford Chance LLP and his client, British technology mogul Mike Lynch.
August 23, 2024
Google Faces £1B Antitrust Claim Over App Store Practices

Google was hit Friday with a £1.04 billion ($1.37 billion) claim at the U.K.'s competition regulator over alleged anticompetitive practices on its app store, adding to the tech giant's legal troubles.
August 23, 2024
Bribery Suspect Can't Dodge Extradition Over Mental Health

A London court on Friday dismissed a bribery suspect's challenge to his extradition to South Africa, finding there are appropriate measures in place to cope with the 76-year-old's mental condition and suicide risk.
August 23, 2024
Ex-Iraqi Minister Foils Reporting Org.'s Defense In Libel Case

An Iraqi politician has successfully persuaded a judge to throw out an investigative reporting organization's qualified privilege defense to his defamation claim, with the judge ruling Friday that an article about alleged corruption in the Iraqi oil business did not accurately reflect court proceedings.
August 23, 2024
UK Litigation Roundup: Here's What You Missed In London

The past week in London has seen Google sue several Russian media outlets in response to challenges to the tech giant's response to international sanctions, easyGroup bring an intellectual property claim against delivery company Easycargo, and e-money business Nyavo challenge action by the Financial Conduct Authority.
August 23, 2024
Lynch's Death Puts UK-US Extradition Under The Microscope

The death of technology tycoon Mike Lynch has triggered calls by a lawmaker to scrap Britain's extradition agreement with the U.S. amid proposals that U.K. citizens should be prosecuted at home, although lawyers say the status quo is unlikely to change.
August 23, 2024
Oligarch Denied Bid To ID Client Linked To $20M Transfer

A judge refused Friday to let an imprisoned Russian oligarch force a group of companies to disclose the identity of a client who requested a $20 million transfer, saying that revealing the person's identity runs the risk of violating criminal law in Liechtenstein.
August 23, 2024
HMRC Can Be Liable For Damage To Biz Shut Over £7.4M Debt

The tax authority cannot lift a court order that requires it to repay a payroll business damages for losses suffered after it was put into provisional liquidation, as a court found on Friday that it had failed to pursue that action for law enforcement purposes.
August 22, 2024
UK Antitrust Arm Pauses Google, Apple Probes For New Law

United Kingdom antitrust authorities hit pause on investigations into Google and Apple policies allegedly locking app developers into their in-app payment systems, preferring to wait until new powers come online even as officials said commitments offered by Google aren't enough to address their concerns.
August 22, 2024
Fidelis Denies Liability For $238M Over Stranded Planes

Fidelis has argued it should not be liable for paying out claims totaling more than $238 million over planes stranded in Russia, arguing the lessors had not been irretrievably deprived of the aircraft under the terms of the policies.
August 22, 2024
Mike Lynch's Path From Tech Founder To DOJ Target

Friends and colleagues paid tribute to Mike Lynch following his death in a yachting accident on Thursday, hailing the British tech entrepreneur for the decades he spent furthering the industry despite the legal troubles that threatened to overshadow his career.
August 22, 2024
'Beloved By Everyone': Attys Recall Clifford Chance's Morvillo

Clifford Chance LLP partner Christopher Morvillo, who died this week after a luxury yacht he was on sank off the coast of Sicily, is being remembered not only as a lion of the legal community but also as an "extraordinary human being" and a "Renaissance man" who was devoted to his family.
August 22, 2024
Over 3M UK Pensioners To Be Dragged Into Higher Tax Rates

Government data shows 3.1 million U.K. pensioners will be dragged into paying higher taxes in the next four years due to the freeze on income thresholds, financial firm Quilter PLC said Thursday.
August 22, 2024
Mike Lynch's Body Recovered From Yacht Wreck

Mike Lynch, founder of technology company Autonomy, died when a yacht he was aboard sank off the Sicilian coast, his family confirmed Friday, after a trip the entrepreneur had reportedly chartered with his legal team to celebrate their victory in a U.S. fraud case.
August 22, 2024
Sports Hospitality Biz Shuttered Over Fake Tickets Scam

A company that scammed customers out of more than £600,000 ($787,000) by offering half-price hospitality at sold-out sporting events including Formula 1 races has been shut down, the U.K.'s Insolvency Service said Thursday.
August 22, 2024
Insurance Conman Gets 20-Month Sentence For Bogus Claims

A fraudster has been hit with a 20-month prison sentence after he pocketed almost £12,000 ($15,700) after he used multiple identities to file fake home insurance claims under multiple identities, a London police force said Thursday.
August 21, 2024
Top Commercial Disputes To Watch In 2nd Half Of 2024

A claim against BHP from victims of Brazil's deadliest environmental disaster, a $10 billion insurance megatrial over planes stranded in Russia and a legal challenge to the response by the U.K. financial regulator to the mis-selling scandal are just some of the trials to look out for in the second half of 2024.
August 21, 2024
Sporting Co.'s Ex-Director Sentenced For COVID Loan Misuse

The former director of a Sussex-based sporting services company has been sentenced to eight months in prison, suspended for 12 months, and 150 hours of unpaid work for exploiting a government COVID-19 business loan, the U.K.'s Insolvency Service announced Wednesday.
August 21, 2024
VAT Fraudster Loses Bid To Escape Repaying £1.4M

A man involved in a £40 million ($52 million) criminal tax fraud scheme has lost a bid to avoid repaying £1.4 million as a London court ruled on Wednesday that he had failed to prove he no longer had hidden assets.
August 21, 2024
Tribunal Lifts 21-Year Practice Ban, Praises Lawyer's 'Tenacity'

A tribunal praised a solicitor for her "tenacity" on Wednesday as it restored her to the profession 21 years after she was struck off for taking a loan from a client and paying clients' money into a personal account.
August 21, 2024
UK Fraud Fund Pays Out £9.8M To Norton Pension Members

The pensions fraud compensation body said it has paid out £9.8 million ($12.8 million) to retirement savings plans sponsored by manufacturer Norton Motorcycles Holdings Ltd., after the company director was convicted of misappropriating funds.
August 21, 2024
Insurers Failing To Give Customers Good Value, FCA Warns

The Financial Conduct Authority called on insurers and brokers on Wednesday to remedy failures to demonstrate that they offer fair value to customers with good outcomes.
August 20, 2024
Insider Trading Won't Impact Pilot's Tax Sentencing Guidelines

A Manhattan federal judge found Tuesday that insider trading allegations won't bump up the guidelines sentencing range for a pilot for U.K. billionaire Joe Lewis who pled guilty to tax evasion.
August 20, 2024
Judicial Proceedings Immunity Thwarts Whistleblower's Suit

An appellate tribunal ruled Tuesday that immunity from judicial proceedings blocks a former aide from claiming he faced groundless and malicious arbitration from his work after blowing the whistle on alleged staff mistreatment.
August 20, 2024
Imprisoned Oligarch Bids For ID Linked To $20M Transfer

An imprisoned Russian oligarch pursuing a $13.8 billion conspiracy claim urged a London judge Tuesday to order a group of wealth management companies to disclose the identity of a person who requested a $20 million transfer that he alleges was a bribe.

Editor's Picks

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.
Starmer Could Crack Judicial Crisis, Former CPS Chiefs Say

Keir Starmer's lead in the polls as the general election in July approaches has sparked hopes among criminal justice advocates that the Labour leader — a former top prosecutor — will implement reforms as prime minister.
Pillsbury's New UK White Collar Chief Eyes Success In London

Former Serious Fraud Office "powerhouse" Audrey Koh is in the building, and Pillsbury Winthrop Shaw Pittman says it now has the tools to launch its white-collar and corporate investigations practice in London. Here, Koh and managing partner Matthew Oresman survey the legal landscape.

Expert Analysis

What Labour Has In Mind For UK Data Protection Law Reform

The U.K.'s new Labour government is indicating that it will strengthen the country's cybersecurity regime, and introduce artificial intelligence legislation similar to that of the European Union, in an attempt to further reform data protection law and harness the power of data for economic growth, says Victoria Hordern at Taylor Wessing.
ECJ Cartel Damages Rulings Are Wins For Multinational Cos.

Two decisions from the European Court of Justice last month clarifying the limits of the single economic unit doctrine in cartel damages proceedings will help multinational companies anticipate and prepare for litigation within a narrower band of possible jurisdictions, say lawyers at Linklaters.
Takeaways From EU's 'Pay Or Consent' Advertising Probe

Anne-Gabrielle Haie and Charles Whiddington at Steptoe examine key points from the European Commission's recent investigation into Big Tech's use of "pay or consent" advertising models, as well as the European Data Protection Board’s opinion on how such models can comply with EU competition and data protection laws.
Why NCA's 1st Seizure Of Sanctioned Funds Is Significant

The National Crime Agency’s recently secured forfeiture of a Russian oligarch's sanctioned funds was a landmark achievement, and is particularly notable because it was made under the Proceeds of Crime Act, illustrating how U.K. authorities can coordinate their respective powers to confiscate assets, says Lindsey Cullen at WilmerHale.
UK Judgment Could Change Anti-Money Laundering Regimes

After the Court of Appeal of England and Wales' determination that criminal property remains criminal property in the hands of its purchaser even if purchased at market value, many businesses could face a new or heightened risk of prosecution for criminality in their supply chains and related money laundering offenses, say lawyers at Macfarlanes.
Takeaways From First EU Foreign Subsidy M&A Investigation

The European Commission's recent investigation into Emirates Telecommunications' proposed acquisition of PPF Telecom is the first in-depth investigation of an M&A deal under the Foreign Subsidies Regulation, demonstrating that the regulation can have real consequences in practice that companies must consider at the outset of large transactions, says Matthew Hall at McGuireWoods.
Takeaways From New FCA Rules On Research Payments

The Financial Conduct Authority’s recently published final rules on payment optionality for investment research, which involve a client disclosure obligation option, will be welcome news for U.K. managers who buy investment research from U.S. brokers, and for global asset management groups, says Anna Maleva-Otto at Schulte Roth.
How Digital Markets Act Will Enhance Consumer Protections

The Digital Markets Act represents a major shift in U.K. competition and consumer protection law by introducing a new regulatory regime for large digital firms, and by giving the Competition and Markets Authority broader merger investigation powers and a wider enforcement remit for online activities, say lawyers at Cooley.
What Steps Businesses Can Take After CrowdStrike Failure

Following last month’s global Microsoft platform outage caused by CrowdStrike’s failed security software update, businesses can expect complex disputes over liability resulting from multilayered agreements and should look to their various insurance policies for cover despite losses not stemming from a cyberattack, says Daniel Healy at Brown Rudnick.
Drafting Settlement Agreements That Avoid Future Disputes

Several recent U.K. rulings highlight the importance of drafting precise settlement agreements to prevent time-consuming and costly disputes over what claims the agreements were meant to cover, says Michelle Radom at Osborne Clarke.
Int'l Treaties May Aid Investors Amid UK Rail Renationalization

The recently introduced Passenger Railway Services Bill seeks to return British railways to public ownership without compensating affected investors, a move that could trigger international investment treaty protections for obligation breaches, says Philipp Kurek at Signature Litigation.
What EU Opinion May Mean For ESG Product Classification

The recently issued European Supervisory Authority opinion on the Sustainable Finance Disclosures Regulation offers key recommendations, including revising the definition of sustainable investments and making principal adverse impacts consideration mandatory, that could sway the European Commission’s final approach to product classification, say lawyers at Debevoise.
EU Competition Report Spotlights Areas For Future Focus

The European Commission’s recent report on protecting competition highlights the importance of safeguarding innovation and preventing exploitative conduct by dominant firms, signaling that strong and focused law enforcement is to remain a priority with an even greater application of abuse-of-dominance rules, say Nicole Kar and Charlotte Mann at Paul Weiss.
A Primer On EU's Updated Human Substance Regulations

The European Union's updated standards regarding quality and safety of substances of human origin meant for human application carry significant implications for companies that work with cells and tissues, and U.S. companies active in the EU market should pay particular attention to the import and export rules, say Geneviève Michaux and Georgios Symeonidis at King & Spalding.
Autonomy Execs' Acquittal Highlights Good Faith Instruction

The recent acquittal of two former Autonomy executives demonstrates that a good faith jury instruction can be the cornerstone of an effective defense strategy in white collar criminal cases, in part because the concept of good faith is a human experience every juror can relate to, says Sara Kropf at Kropf Moseley.