Corporate Crime & Compliance UK

  • June 03, 2024

    Ex-Autonomy CEO 'Had 500M Reasons' For Fraud, Jury Told

    Autonomy's ex-CEO Michael Lynch "had 500 million reasons to defraud HP," since he reaped $500 million by selling his company to the tech giant at an inflated price, a federal prosecutor argued Monday during closings for the businessman's criminal trial, while Lynch's lawyer told jurors, "HP was not a victim."

  • June 03, 2024

    Broker Blames Mexican Insurance Co. In $18.7M Fraud Row

    A London-based insurance broker has denied responsibility for the $18.7 million claimed by a Mexican reinsurance broker and one of its clients, saying the North American company was the "author of its own misfortune" and to blame for not spotting fraud that caused the losses.

  • June 03, 2024

    Mammoth Swipe Fees Cases Joined Together In Pass On Trial

    Two mammoth class actions against Mastercard and Visa will be heard together at a trial in November to resolve common issues about whether retailers passed on the credit and debit card giants' fees to consumers, a London tribunal has ruled.

  • June 03, 2024

    Energy Exec Would Have Axed Trader If Told Of Side Hustle

    The founder of an energy company has denied knowing that a biodiesel trader accused of pocketing £5.2 million ($6.6 million) in secret commissions had a side business trading in alternative fuel, testifying on Monday that the employee would have been sacked if he had been aware.

  • June 03, 2024

    Director Fined For Withholding Info From Pensions Regulator

    The director of a shooting range has been ordered by a crown court to pay a total of £15,000 ($19,000) for withholding information from The Pensions Regulator as it investigated his company, the watchdog has said.

  • June 03, 2024

    Geale Takes Helm At Payments Watchdog, Hemsley Resigns

    The Payment Systems Regulator said on Monday that its managing director Chris Hemsley has resigned and Financial Conduct Authority Director David Geale will replace him temporarily with almost immediate effect.

  • May 31, 2024

    UK Litigation Roundup: Here's What You Missed In London

    This past week in London has seen financier Crispin Odey file a defamation claim against the Financial Times, Ford hit with the latest "Dieselgate" claim and a human rights activist bring a privacy claim against Saudi Arabia. Here, Law360 looks at these and other new claims in the U.K.

  • May 31, 2024

    Solicitor Struck Off For Using Client's Card At ATM

    The Solicitors Disciplinary Tribunal has struck off a former partner at a Midlands law firm after she admitted she had been jailed for withdrawing thousands of pounds from an elderly client's bank account.

  • May 31, 2024

    Law Firm Denies Promoting Misleading Investment Scheme

    A law firm has denied an accusation by the Financial Conduct Authority that it assisted a client in promoting a misleading care home investment scheme, arguing it provided legal advice in "good faith" based on the information it was given.

  • May 31, 2024

    EU Watchdog Warns Retail Investment Firms Of AI Pitfalls

    The European Union's markets regulator has issued guidance for firms using artificial intelligence to give investment services to retail clients, warning of risks like biased decision-making.

  • May 31, 2024

    Anti-Fraud Agency Sued For £144K Over Unjustified Suspicion

    The operator of the U.K.'s national fraud database is being sued for £144,000 ($183,000) for allegedly marking a London resident's bank activity for suspected fraud without any justification and severely affecting his credit rating.

  • May 30, 2024

    Autonomy VP Declines To Take Stand As Fraud Trial Nears End

    Testimony wrapped Thursday in a California federal criminal trial over claims that former Autonomy CEO Michael Lynch and finance vice president Stephen Chamberlain duped HP into overpaying billions for the British tech company, as Chamberlain opted not to testify in his own defense after Lynch stepped off the witness stand.

  • May 30, 2024

    Bulgarian Fraudsters Get 25 Years For Major Benefits Scam

    Five Bulgarian individuals were sentenced to more than 25 years in prison Thursday after admitting to making £54 million ($68.7 million) in fraudulent benefits claims, the largest-ever scam of its kind.

  • May 30, 2024

    Ex-BigLaw Atty Fights 10-Year Sentence In OneCoin Case

    A former Locke Lord LLP partner urged the Second Circuit Wednesday to ax his 10-year prison sentence and conviction for laundering around $400 million in proceeds from the global OneCoin cryptocurrency scam, saying the case was contaminated by perjury and errors at the trial court level.

  • May 30, 2024

    Bar Calls For Inquiry Amid Criminal Case Backlog 'Crisis'

    The Bar Council called on Thursday for an independent public inquiry to carry out a comprehensive review of the criminal justice system in order to resolve the backlog of cases currently at "crisis levels."

  • May 30, 2024

    Co-Founder Says French Incubator Wants To 'Destroy' Him

    A co-founder of a French incubator has urged a London court to throw out a claim brought against him by his former company over allegedly misappropriated funds, saying the aim of the "vexatious and oppressive" litigation was to "destroy" him.

  • May 30, 2024

    Fuel Trader's Side Hustle Was No Secret, Colleagues Say

    Former colleagues of a biodiesel trader accused of pocketing £5.2 million ($6.5 million) in secret commissions testified at a London court on Thursday that it was "no secret" he ran a side business buying and selling alternative fuel.

  • May 30, 2024

    Big Tech Must Help Reimburse Fraud Victims, City Group Says

    The next U.K. government should implement legislation that forces big tech and social media giants to shoulder some of the financial burden for victims of online fraud, a financial services trade group said Thursday.

  • May 30, 2024

    EU Adopts New AML Measures, Sets Up Supervisory Agency

    The Council of the European Union adopted anti-money laundering measures on Thursday in a move to close loopholes exploited by organized crime, which include setting up a dedicated agency to fight illicit financial activities across the bloc.

  • May 30, 2024

    Odey Sues FT For Libel After Sexual Misconduct Allegations

    Crispin Odey has sued the Financial Times at a London court after the newspaper published articles that contained a string of allegations of sexual misconduct against the well-known financier.

  • May 29, 2024

    Autonomy Founder Pushed Sales Team Hard, Jury Hears

    A federal prosecutor cross-examining ex-Autonomy CEO Michael Lynch on Wednesday in a criminal fraud trial over claims the British tech tycoon conned HP into overpaying billions for his software company sought to portray Lynch as an overbearing leader who put intense pressure on his team to generate "revenue revenue revenue."

  • May 29, 2024

    Malaysia Plans Suits Over $14.9B Award To Sulu Claimants

    Units of Malaysia's national natural gas company are planning to file litigation in Europe against claimants awarded $14.9 billion and their litigation funder following a high-stakes arbitration with the Southeast Asian country over a 19th-century land deal, according to newly filed documents in New York.

  • May 29, 2024

    EU Unveils Office To Police New Artificial Intelligence Law

    The European Union's executive arm on Wednesday unveiled details of its new AI Office to police compliance with the newly launched Artificial Intelligence Act across member states, including financial services.

  • May 29, 2024

    Russian Billionaire Beats Sanctions Over Lack Of Evidence

    The European Union lacked justification to sanction billionaire Farkhad Akhmedov following Russia's invasion of Ukraine since there's no credible evidence he's a leading figure in economic industries vital to the government, an EU court ruled Wednesday.

  • May 29, 2024

    Barrister Fined For Not Disclosing SRA Investigation

    A lawyer was fined £5,000 ($6,360) Wednesday for not informing the barrister's regulator of an investigation into him by the Solicitors Regulation Authority over a failure to safeguard client information and assets by a law firm he ran.

Expert Analysis

  • Experian Ruling Helps Cos. Navigate GDPR Transparency

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    In Information Commissioner v. Experian, the Upper Tribunal recently reaffirmed the lawfulness of the company's marketing practices, providing guidance that will assist organizations in complying with the GDPR’s transparency obligations, say lawyers at Jenner & Block.

  • Clarity Is Central Theme In FCA's Greenwashing Guidance

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    Recent Financial Conduct Authority guidance for complying with the U.K. regulator's anti-greenwashing rule sends an overarching message that sustainability claims must be clear, accurate and capable of being substantiated, say lawyers at Cadwalader.

  • What The EU Sustainability Directive Will Mean For Companies

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    The European Parliament’s recent approval of the landmark Corporate Sustainability Due Diligence Directive provides welcome clarity for small and midsize enterprises regarding human rights and environmental due diligence expectations, forming part of a growing pressure on companies around the world to operate ethically and sustainably, say lawyers at Jenner & Block.

  • What Can Be Learned From CMA's Green Claims Investigation

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    The Competition and Markets Authority's recent investigation into retailers' allegedly misleading environmental claims demonstrates that all consumer-facing businesses must exercise caution and ensure their green credentials are genuine, say Charlotte Kong and Stephen Sidkin at Fox Williams.

  • The Art Of Corporate Apologies: Crafting An Effective Strategy

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    Public relations challenges often stop companies from apologizing amid alleged wrongdoing, but a recent U.K. government consultation seeks to make this easier, highlighting the importance of corporate apologies and measures to help companies balance the benefits against the potential legal ramifications, says Dina Hudson at Byfield Consultancy.

  • AI Tools Could Enhance UK Gov't Public Services Strategy

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    The government’s recently announced intention to pilot artificial intelligence tools in routine policy work is part of a wider strategy to revolutionize the delivery of public services, and could improve productivity and create efficiencies, provided it is mindful of the potential risks involved, say attorneys at Akin.

  • Taking Stock Of The Latest Criminal Court Case Statistics

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    The latest quarterly statistics on the type and volume of cases processed through the criminal court illustrate the severity of the case backlog, highlighting the need for urgent and effective investment in the system, say Ernest Aduwa and Jessica Sarwat at Stokoe Partnership.

  • ICO Data Protection Guidance Offers Clarity On Fining Powers

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    New guidance from the Information Commissioners' Office is designed to offer transparency about its fining powers, and, combined with the office's wide-ranging enforcement authority, clearly intends to ensure breaching companies concentrate on the external harm they cause and not only internal changes, say Robert Allen and Amelia Handoll-Clark at Simmons & Simmons.

  • Hugh Grant Case Raises Questions About Part 36 Offers

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    Actor Hugh Grant's recent decision to settle his privacy suit by accepting a so-called Part 36 offer from News Group — to avoid paying a larger sum in legal costs by proceeding to trial — illustrates how this legal mechanism can be used by parties to force settlements, raising questions about its tactical use and fairness, says Colin Campbell at Kain Knight.

  • Investment Security Act Fine-Tune May Help Businesses

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    Although the government’s recent response to feedback on the National Security and Investment Act regime makes it clear that its approach is one of fine-tuning and substantial reforms will have to wait, there is still room to ease the burden on businesses by issuing guidance and refining the terms of mandatory area definitions, say lawyers at Linklaters.

  • How New FCA Rules Strengthen Borrower Protections

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    The Financial Conduct Authority’s recently published final rules, aimed at strengthening protections for borrowers in financial difficulty by regularizing good practices across the industry, put its previous guidance on a permanent footing and send a clear message to firms that this issue remains a regulatory priority, say James Black, Julie Patient and Mark Aengenheister at Hogan Lovells.

  • How Cos. Can Prepare For EU's Forced Labor Regulation

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    Before a new European Union regulation takes effect banning products made with forced labor from the internal market, economic operators will need to get their supply chain compliance functions ready, familiarizing themselves with international standards and case law, say Vassilis Akritidis and Jean-Baptiste Blancardi at Crowell & Moring.

  • Opinion

    New Property Category Not Needed To Regulate Digital Assets

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    The U.K. Law Commission's exploration of whether to create a third category of property for digital assets is derived from a misreading of historical case law, and would not be helpful in resolving any questions surrounding digital assets, says Duncan Sheehan at the University of Leeds.

  • FTSE Draft Rules Show Impact Of FCA Listing Reforms

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    FTSE Russell’s recently published provisional rule changes represent a much-awaited indication of its response to the U.K. Financial Conduct Authority’s proposed listing reforms, providing a level of certainty that will assist issuers and advisers in preparing for the implementation of the regime, say lawyers at Davis Polk.

  • FCA Strikes A Balance With 'Finfluencer' Guidance

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    With financial firms leveraging social media to engage with a broader audience, the Financial Conduct Authority’s recent "finfluencer" guidance signals a recognition of the imperative to adapt regulatory frameworks while maintaining a firm commitment to consumer protection, say David Allinson and Damien O'Malley at RPC.

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