{"id":4368,"date":"2022-02-03T18:53:06","date_gmt":"2022-02-03T18:53:06","guid":{"rendered":"https:\/\/diskdrive33.com\/mks\/?p=4368"},"modified":"2022-02-03T19:24:58","modified_gmt":"2022-02-03T19:24:58","slug":"jeopardy-sfo","status":"publish","type":"post","link":"https:\/\/diskdrive33.com\/mks\/2022\/02\/03\/jeopardy-sfo\/","title":{"rendered":"Jeopardy at the UK\u2019s Serious Fraud Office?"},"content":{"rendered":"<h3>Will the SFO be able to stave off further bad news, wonders Martin Kenney?<\/h3>\n<p>The UK\u2019s Serious Fraud Office (SFO) is going through some hard times.<\/p>\n<p>The government department that investigates and prosecutes serious or complex fraud and corruption in England, Wales and Northern Ireland has recorded its <a href=\"https:\/\/globalinvestigationsreview.com\/enforcement\/low-number-of-new-sfo-cases-sparks-concern\">lowest annual tally of new criminal investigations<\/a> into corporate misconduct in recent years, as the agency\u2019s caseload continues to shrink.<\/p>\n<p>Figures obtained via a Freedom of Information request show that the anti-fraud prosecutor opened just four new probes in 2021 \u2013 its lowest total in over a decade \u2013 following two historically lean years where it opened seven and five cases, respectively.<\/p>\n<p>As of mid-November it had approximately 40 cases on its books, down from the 55 reported in 2020 and almost half of the 70 cases the agency said it was handling only three years ago.<\/p>\n<blockquote><p><strong>&#8220;These are difficult times for the agency&#8221;<\/strong><\/p><\/blockquote>\n<p>I have <a href=\"https:\/\/fcpablog.com\/2021\/09\/07\/is-the-serious-fraud-office-bouncing-back-from-the-abyss\/\">previously commented<\/a> on Lisa Osofsky\u2019s leadership of the SFO. I called into question her belief that UK executives <a href=\"https:\/\/diskdrive33.com\/mks\/2019\/06\/20\/can-the-sfo-really-use-participating-informants-to-prosecute-bribery\/\">could wear wires to avoid prosecution<\/a>, as happens in the US (from where her professional experience is drawn, having previously worked for the FBI).<\/p>\n<p>These are difficult times for the agency. It has <a href=\"https:\/\/www.cityam.com\/former-serco-boss-calls-for-abolition-of-serious-fraud-office\/\">faced calls for its abolition<\/a>, after the <a href=\"https:\/\/www.theguardian.com\/business\/2021\/apr\/26\/serco-trial-collapses-as-serious-office-fails-to-disclose-evidence\">collapse of\u00a0a major\u00a0case<\/a> last year against two former executives at Serco, an operations company, after the agency failed to\u00a0disclose documents to the defence, jeopardising the trial.<\/p>\n<figure id=\"attachment_4374\" aria-describedby=\"caption-attachment-4374\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4374 size-large\" src=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Lisa-Osofsky-Director-e1529585382221-1024x771.png\" alt=\"\" width=\"1024\" height=\"771\" srcset=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Lisa-Osofsky-Director-e1529585382221-1024x771.png 1024w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Lisa-Osofsky-Director-e1529585382221-300x226.png 300w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Lisa-Osofsky-Director-e1529585382221-768x578.png 768w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Lisa-Osofsky-Director-e1529585382221.png 1133w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-4374\" class=\"wp-caption-text\">Lisa Osofsky, SFO Director<\/figcaption><\/figure>\n<p>The Court of Appeal in London has also recently <a href=\"https:\/\/www.reuters.com\/article\/britain-unaoil-appeal-idCNL8N2RF5F5\">quashed a former Unaoil executive&#8217;s bribery conviction<\/a>, describing the SFO&#8217;s refusal to provide the defence with relevant documents as a \u201cserious failure\u201d. The UK\u2019s attorney general has launched an independent review into the situation, saying she would discuss its \u201cimplications\u201d with Osofsky.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>These all put the SFO director in a very uncomfortable position.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>In the Unaoil case, Ziad Akle, 46, was alleged to have paid bribes between 2005 and 2009 to influence the terms of contracts and obtain sensitive information about projects to increase Iraq\u2019s crude oil exports after the overthrow of Saddam Hussein in 2003. The SFO had secured four convictions, including Akle\u2019s, in relation to the Unaoil energy consultancy but did not prosecute the Ahsanis \u2013 the family which owned and controlled the company.<\/p>\n<p>In pre-trial disclosure, it emerged that Osofsky and other senior SFO figures had contacts with David Tinsley, a former US Drug Enforcement Administration agent who was acting on behalf of the Ahsanis.<\/p>\n<blockquote><p><strong>&#8220;The original [Unaoil] trial judge criticised Osofsky&#8221;<\/strong><\/p><\/blockquote>\n<p>The original trial judge <a href=\"https:\/\/www.law360.com\/articles\/1291761\/sfo-s-unaoil-wins-marred-by-criticism-of-osofsky-s-conduct\">criticised Osofsky<\/a> for \u201c\u2026potentially trying to use US strategies and tactics that aren\u2019t applicable in the UK\u201d. The judge added that Osofsky had also been na\u00efve and vulnerable to flattery. It was little surprise, therefore, that the case moved onwards to the Court of Appeal.<\/p>\n<p>At the appeal, which delivered its verdict in December, it was alleged that the American fixer, Tinsley, had sought to pressurise Akle into offering a guilty plea. The subsequent quashing of Akle\u2019s conviction came as no surprise to those of us who have been following the case.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>The issue of disclosure in criminal maters is not taken lightly by the UK courts, who expect all parties to fight fairly. Any actions considered to be underhand or lacking in due process are likely to have adverse consequences for the side wielding them.<\/p>\n<p>As the panel of three appeal judges unanimously agreed to overturn the conviction, they noted that the SFO had refused to offer any explanation to justify its refusal to provide the defense with documents that would \u201c\u2026illustrate very clearly why it was wholly inappropriate for the SFO to have any dealings with Tinsley in relation to the pleas.\u201d<\/p>\n<p>Justice of Appeal Timothy Holroyde added: \u201cWhen copies were requested by the defense, they should have been provided. The refusal to provide them was a serious failure by the SFO to comply with their duty (of disclosure).\u201d<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<blockquote><p><strong>&#8220;Ziad Akle\u2019s defence lawyer said the SFO director\u2019s position was now untenable&#8221;<\/strong><\/p><\/blockquote>\n<p>Ziad Akle\u2019s defence lawyer, Richard Cannon, said the SFO director\u2019s position was now untenable:<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>\u201cThe findings of the Court of Appeal are damning and go to personal and organizational misconduct. The existential threat to the SFO now looms large again. We might well see the exit of the director in a rear-guard action to save itself.\u201d<\/p>\n<figure id=\"attachment_4379\" aria-describedby=\"caption-attachment-4379\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4379 size-large\" src=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street-1024x768.jpg\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street-1024x768.jpg 1024w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street-300x225.jpg 300w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street-768x576.jpg 768w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street-1536x1152.jpg 1536w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2022\/02\/Serious_fraud_office_elm_street.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-4379\" class=\"wp-caption-text\">Elm House, the SFO HQ<\/figcaption><\/figure>\n<p>Fortunately for the SFO and Lisa Osofsky, the Court ruled that it did not find any evidence of an attempted coverup and that there was no dishonesty on the SFO\u2019s part. However, this means that the only explanation remaining for the SFO\u2019s failure to comply with its duty of disclosure was incompetence.<\/p>\n<p>The Court of Appeal judges have pointed the finger directly at Osofsky. She was integral to the involvement of the fixer in Unaoil case, she engaged with him, and according to the trial judge she was even flattered by him. Osofsky cannot lay claim to ignorance.<\/p>\n<blockquote><p><strong>&#8220;The credibility of the SFO as an organisation is called into question now&#8221;<\/strong><\/p><\/blockquote>\n<p>Given the culmination of other events and failures, her position may be under threat. Nobody wants to see individuals losing their jobs, but there comes a time when their standing becomes untenable.<\/p>\n<p>The credibility of the SFO as an organisation is called into question now: such is the damage it has inflicted upon itself, it may be that the organisation itself \u2013 and not just its head \u2013\u00a0is also under threat.<\/p>\n<p><i>With thanks to Tony McClements, Senior Investigator at Martin Kenney &amp; Co, for his assistance.<\/i><\/p>\n<p><b><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-2759 alignleft\" src=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work-300x242.jpg\" alt=\"\" width=\"300\" height=\"242\" srcset=\"https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work-300x242.jpg 300w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work-600x484.jpg 600w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work-768x619.jpg 768w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work-1024x826.jpg 1024w, https:\/\/diskdrive33.com\/mks\/wp-content\/uploads\/2018\/06\/martin-at-work.jpg 2000w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Martin Kenney is Managing Partner of Martin Kenney &amp; Co., Solicitors, a specialist investigative and asset recovery legal practice based in the BVI, focused on multi-jurisdictional fraud and corruption cases. He is a 2014 recipient of the ACFE\u2019s Cressey Award for lifetime achievement and rated by Chambers &amp; Partners and Who&#8217;s Who Legal as one of the world&#8217;s leading asset recovery lawyers.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The credibility of the SFO as an organisation is called into question now: such is the damage it has inflicted upon itself, it may be that the organisation itself \u2013 and not just its head \u2013\u00a0is also under threat.<\/p>\n","protected":false},"author":2,"featured_media":3333,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[111],"tags":[89,181,180,183,309],"class_list":["post-4368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-fraud","tag-lisa-osofsky","tag-serious-fraud-office","tag-sfo","tag-unaoil"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Jeopardy at the UK\u2019s Serious Fraud Office? 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