Briefings
Mishcon Fraud Watch
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Fraud: Claimant
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| November 2006 |
Welcome to the November edition of Mishcon Fraud Watch, prepared by the Corporate Investigations & Asset Recovery Group at Mishcon de Reya. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of fraud in the last month.
We make no judgement whatsoever as to the morality, legality or appropriateness of the conduct which forms the subject matter of this bulletin. We simply aim to bring these matters to the attention of those involved in the prevention, detection and investigation of fraud.
United Kingdom
Defence
The Serious Fraud Office and Ministry of Defence Police have raided four addresses in connection with an ongoing investigation into BAE Systems.
The Daily Telegraph, 19 October 2006
Identity Theft
According to a recent survey the number of victims of identity fraud in the UK has reached record levels. During the first nine months of 2006 there was a 21% increase in the number of victims compared with the same period in 2005.
The Sunday Telegraph, 22 October 2006
Legislation
The Fraud Bill had its second reading in the House of Commons on 12 June 2006 and waits the publication of a report following Standing Committee stages on 20 and 22 June 2006. The Bill makes provision for, and in connection with, criminal liability for fraud and obtaining services dishonestly.
North America
Energy
Jeffrey Skilling, a former Enron executive, has been sentenced to over 24 years in prison for his part in a fraud that lead to the collapse of Enron.
The Daily Telegraph, 24 October 2006
Technology
David Kreinberg, the former finance director of Comverse Technology, has pleaded guilty to securities fraud and conspiracy. Mr Kreinberg admitted his part in a scheme which involved backdating stock options in order to enrich executives of the company.
The Times, 25 October 2006
European Union
Courts
European Court of Auditors has refused to sign off the accounts of the European Union. The Court found there to be insufficient controls over how the budget is spent, leaving the organisation open to fraud.
The Times, 25 October 2006
Mishcon de Reya
Mishcon's Fraud Watch is published by the Corporate Investigations & Asset Recovery Group of Mishcon de Reya Solicitors. Widely recognised as the leader in the field of fraud investigations, the Group has pioneered the use of financial fraud techniques in numerous fields, including the rapidly growing areas of theft of confidential information and counterfeiting. The Group founded and runs both the Asset Protection & Recovery Network, made up of international legal fraud specialists, and the Financial Fraud Group, for risk and compliance officers.