SPECIAL INVESTIGATIONS

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1 SPECIAL INVESTIGATIONS

2 INTEGRATED ASSET RECOVERY SOLUTIONS RSM s Special Investigations team has vast experience of dealing with high-profile enforcement actions, local and international asset tracing, contentious insolvency appointments and fraud investigations.. We work closely with highly experienced legal advisers and other professionals to identify and recover assets and bring claims against those accountable for fraud, misfeasance or breach of duty. Many of our enforcement actions and insolvency appointments have an international dimension. The team has a wealth of experience in dealing with cross-border issues, complex litigation and numerous contentious issues often associated with such matters. We have considerable experience working with both internal and external forensics experts in evidence gathering and written statement preparation. We work closely with highlyexperienced legal advisers and other professionals to identify and recover assets and bring claims against those accountable for fraud, misfeasance or breach of duty. Our expertise Formal insolvency appointments utilising powers under the Insolvency Act 1986 to obtain disclosure of information from directors and third parties to identify, secure and recover assets, both in the UK and internationally. Accepting joint appointments and assisting office holders appointed in insolvency and enforcement proceedings overseas, particularly in the Middle East and offshore centres in the Caribbean. Vigorously investigating the conduct of directors and management of companies, bringing proceedings for misfeasance, breach of trust and breach of duty. Provisional liquidations, including continuing to trade businesses whilst carrying out thorough investigations. High-profile bankruptcies involving high net worth individuals with assets often held through complex global structures. Execution of Search and Seizure and Worldwide Freezing Orders. Our approach Partner-led project teams. Dedicated and accessible points of contact. Continual discussion, debate and feedback with clients. Stakeholder participation sought throughout project to harness knowledge and experience. 2

3 PROVEN EXPERIENCE AND CREDENTIALS RSM s Special Investigations team has considerable experience of dealing with high profile, contentious insolvency appointments, fraud investigations and other asset recovery matters. Our recent experience includes: Real Estate Project Raven Trustees in Bankruptcy of a property developer with debts in excess of 250 million. This case involved realising investments in real estate and other assets located in the UK, Ireland, Spain, Netherlands, Canada and the US. The Trustees were also required to deal with competing claims to these assets from third parties, claiming to have a beneficial interest pursuant to declarations of trust, purportedly made by the debtor prior to the commencement of the bankruptcy proceedings. Project Magpie Appointed liquidators following a winding up order made in the public interest to a group of companies operated by a suspected rogue landlord. Assignment has involved recovery of books and records not delivered to the official receiver and subsequent identification of assets similarly not disclosed. The case also has elements of mortgage fraud. Leisure Project Pubco Acted as liquidators to a group of 18 pubs based in the Southeast following the sale of the business after a successful period of administration trading. In the subsequent liquidation appointment we issued proceedings against the former directors and shareholders in respect of monies paid to the shareholders to purchase their shares as they had failed to comply with the financial assistance provisions of The Company Act. The defendants in turn joined in their previous advisors into the litigation. We successfully settled the claim with the professional indemnity insurers of the ex-advisors at a mediation hearing realising 550,000. Pharma Oxford Pharmaceuticals Limted (reported case) As liquidators of the company we successfully pursued, through the High Court, preference and disposition actions against its parent company. This followed a detailed review by us of the company s books and records to verify the intercompany account position. Judgment was obtained for in excess of 400,000 plus costs together with a further order for 130,000 plus costs against a former director. Financial Services Awal Bank BSC Appointed to assist the External Administrators of Awal Bank in Bahrain (part of the Saad Group). In addition to running the mothballed operations of the bank, stakeholder liaison with over 70 creditor banks and agreement of claims of some US$2.5 billion, the case has involved the identification and recovery of assets held globally with a book value of over US$5 billion and complex litigation in London, United Arab Emirates, Saudi Arabia, New York, Geneva and the Cayman Islands. 3

4 Also appointed as Joint Official Liquidators of eight subsidiaries of the Bank which are registered in the Cayman Islands and held substantial investments in hedge fund portfolios. Realisations of over US$215 million to date. Ongoing complex litigation proceedings continue. Fraud and Ponzi Schemes Mobi Appointed as Liquidators of the company after it was found to be engaged in Missing Trader IntraCommunity (carousel) fraud. Successfully obtained UK judgement against two third parties who had assisted in the fraud. Subsequently enforced the judgements overseas in the Caribbean recovering circa 1m. Dobb White & Co Acted as Liquidators of a company following the collapse of a US$200 million failed Ponzi scheme. This involved seeking recognition of the liquidation in the Channel Islands and entering into a co-operation agreement with an SEC appointed Receiver in Richmond, Virginia. Parkwell Investments (reported case) Appointed provisional liquidator of a company suspected of Missing Trader Intra-community VAT fraud (Carousel fraud) in relation to the sale and purchase of VOIP (voice over internet protocol) telephone minutes. Identified a circa $300,000 movement of funds overseas by the directors in breach of the provisional liquidation order. 4 Resulted in directors being prosecuted for contempt of court and imprisoned and subsequently made Bankrupt. Football Portsmouth City Football Club Ltd Appointed as liquidators of the company following its exit from Administration in January During the course of the Administration, various assets including the company s membership of the Football League were sold and a Company Voluntary Arrangement (CVA) was approved setting out the proposed return to creditors. HM Revenue and Customs (HMRC) had previously issued a winding-up petition in December 2009, which was stayed due to the Administration. When the creditors required the Administrators to apply for their release, HMRC made an application for the petition to be reinstated and we were nominated as liquidators by the majority of creditors to investigate the affairs of the company and, in particular, the events leading up to the presentation of the petition. To date, our investigation a joint project between Special Investigations and Forensic Services teams at RSM has focused on possible claims relating to antecedent transactions.

5 Why use RSM? Rapid response The immediate mobilisation of a team of specialists is crucial to any enforcement or insolvency matter in order to maximise recoveries for stakeholders. For both domestic and international matters, we clear conflicts and assemble a multi-disciplinary team of experienced professionals, taking decisive action in difficult circumstances within a matter of hours. Proven track record In addition to being instructed regularly by many leading local and international law firms, RSM currently has a major presence within UK clearing bank panels and is a member of the HM Revenue & Customs panel for Independent Business Review providers. We are also frequently engaged by UK government agencies in relation to debt recovery and enforcement matters. Special Investigations key contacts: Mark Wilson Partner and Head of Special Investigations mark.wilson@rsmuk.com Mike Dennis Director mike.dennis@rsmuk.com Emma Thompson Associate Director emma.l.thompson@rsmuk.com Karen Adams Assistant Manager karen.adams@rsmuk.com Kate Seacombe Assistant Manager kate.seacombe@rsmuk.com T: +44 (0) Flexible and commercial It is not always clear how the costs associated with an insolvency appointment or investigation will be met when there is no obvious source of funding available at the outset of a case. In many instances, we are prepared to take on cases on a speculative basis, where we examine the prospects for making recoveries and are remunerated according to our success. 5

6 rsmuk.com The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number ) whose registered office is at 11 Old Jewry, London EC2R 8DU. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. RSM UK Consulting LLP, RSM Corporate Finance LLP, RSM Restructuring Advisory LLP, RSM Risk Assurance Services LLP, RSM Tax and Advisory Services LLP, RSM UK Audit LLP, and RSM UK Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. RSM Creditor Services LLP is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities. RSM & Co (UK) Limited is authorised and regulated by the Financial Conduct Authority to conduct a range of investment business activities. Whilst every effort has been made to ensure accuracy, information contained in this communication may not be comprehensive and recipients should not act upon it without seeking professional advice RSM UK Group LLP, all rights reserved