corporate crime the right advice to avoid corporate wrong-doings

Transcription

1 corporate crime the right advice to avoid corporate wrong-doings

2 Did you know? The UK government has proposed a new offence of failing to prevent an economic crime under which companies could face criminal charges.

3 Institutions are, increasingly, just as likely to face criminal sanctions as individuals. The emphasis is more on businesses to self-report wrong-doings to the authorities, which requires sophisticated internal structures and processes that many organisations still need to put in place Ian Ryan, Head of Business Crime and Regulatory, Howard Kennedy 1

4 Keeping yourself in check Companies need to be aware that pointing to rogue traders or isolated incidents is no longer adequate to avoid the gaze of the authorities. Governments and regulators are now as likely to target a business as a whole as they are the rogue trader when wrong-doing is discovered. If you do find evidence of wrong-doing, it is imperative to conduct a thorough internal investigation. It has to be done quickly and decisively. The UK government, moreover, announced recently that it was looking to give companies even more responsibilities and liabilities for corporate crime. It was reviewing the concept of failing to prevent an economic crime, such as money laundering and fraud. If the idea becomes a reality, a company and its officials couldn t be prosecuted if internal procedures were not sufficient (or even existent) to prevent the wrongdoing. A priority for all businesses should be to implement and adhere to much stricter rules on operations. Companies must uphold the highest business ethics operationally as well as ensure that adequate structures and processes are in place to prevent any crime occurring in the first place. Otherwise, the corporate entity itself can be found culpable and the punishments can be sever. The cost of going to trial is also not going to be cheap. 2

5 Our service Our lawyers are highly respected for their work in complex fraud cases, regulatory investigations, and enforcement proceedings representing individuals and companies. We can provide advice and solutions on both internal and external investigations and are experienced in dealing with the Serious Fraud Office (SFO), CMA (Competition and Markets Authority) and non-uk regulators. The team consists of both civil and criminal lawyers and those specialising in regulatory proceedings. Our membership or Meritas and LAW (Lawyers Associated Worldwide) gives clients a genuinely global platform for solving cross-border matters. 3

6 Market insight Companies can already receive unlimited fines for legal breaches including corporate manslaughter and bribing foreign officials and further consequences can follow. Companies can, for example, be barred for bidding for public contracts while senior officials may also face lengthy disqualification from business. Indications are that the authorities will not soften their stance any time soon. Ian Ryan, Head of Business Crime and Regulatory, Howard Kennedy Recent work Successful appeal to the Court of Appeal against a pre-charge Restraint Order. This is the guideline case on the test to be applied to the risk of dissipation Advising an accountant in respect of an on-going money laundering investigation Successfully defending a solicitor investigated under the Fraud Act. No charges were laid following represent to the CPS Representing a solicitor under investigation by the SFO in respect of a high profile investigation. Advising a company in respect of an alleged insurance industry fraud Acting in two overseas corruption cases involving major British companies 4

7 Case studies Colombian drugs cartel: Successfully defending a managing director charged with five counts of money laundering relating to the sale of three aircraft by his company to a frontman for a Colombian drugs cartel. He was awarded a proportion of his costs from central funds. Key contacts Ian Ryan Partner, Head of Business Crime and Regulatory ian.ryan@howardkennedyi.com +44 (0) Alexis Stenfors: Representation of Alexis Stenfors, who negotiated a prohibition order having admitted mis-marking his book in the sum of over $400 million. Crucially, the Prohibition Order did not allege that he had acted dishonestly. UKBA: Successfully representing a client in cash forfeiture proceedings in which all cash taken was returned to him. UKBA sought an Order for the continued detention of cash, however we successfully argued that UKBA could not show that it was reasonable to suspect that the cash was recoverable property in the light of evidence produced by the respondent that he was operating in the normal course of his bona fide business. The primary focus of the team at Howard Kennedy is financial crime, and it continues to represent significant clients in general crime matters on a privately funded basis. Ian Ryan is very experienced. Legal

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