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Fraud Updates 2010
22 April
Welcome to the launch of PCB's new Fraud Update
Our aim is to provide you with regular developments in the areas of commercial fraud and international asset recovery. In our first update, we set out some of the matters on which PCB has been instructed as this very much mirrors the massive increase in fraud that has resulted from the global financial crisis.
The last year has seen PCB Litigation's commercial fraud and international asset recovery practice go from strength to strength and we have recruited Nick Ractliff, an 18 year qualified solicitor from a well known city firm.
PCB has also moved to prestigious new premises on the 15th floor of the International Press Centre on Shoe Lane, EC4 and you are always most welcome to visit.
PCB has been instructed in a number of substantial and high profile claims with the value of the assets in dispute exceeding US$ 8 billion. We have worked and continue to work in a number of countries, representing clients in both court proceedings and in arbitrations in England and internationally. Indeed, approximately 60% of the work now involves PCB litigating or arbitrating outside England.
Clients include Government Agencies, Financial Institutions, State Controlled Enterprises, International Businesses, Hedge Funds and Shareholders/Investors.
They range from a large oil company to shareholders in Lloyds Banking Group in respect of the claims resulting from the merger between Lloyds Bank and HBOS.
Recognition has come from, amongst others:
- The International Chamber of Commerce through membership of Fraudnet, its exclusive global network of specialist commercial fraud and international asset recovery lawyers);
- The Commercial Fraud Lawyers Association of which Steven Philippsohn is Chairman and Anthony Riem is secretary; and
- The Times which said of PCB:
- "The truly international nature of fraud is illustrated by the work of PCB Litigation, a fraud and corporate risk management firm. PCB operates across a global landscape, recovering and protecting clients' assets over borders and through multiple jurisdictions."
One particularly interesting and developing area is the growing availability of legal funding, by hedge funds and insurance companies, who are prepared to underwrite the legal costs of a dispute on the basis that they can share in the damages recovered. A number of clients have benefited from this development.
To give you a flavour of some of the work PCB has done, set out below are some of the disputes on which we have acted during the last year.
- The defence of a US$454m arbitration claim brought against a large oil company before the Stockholm Chamber of Commerce, with related proceedings in 4 other jurisdictions.
- In a US$1.85bn LCIA arbitration involving allegations of breach of trust, breach of fiduciary duty, conspiracy, dishonest assistance, mismanagement and corporate raiding, with related proceedings in Cyprus.
- In a dispute between one of the top 5 most distributed television channels in the World for which PCB acts and its licensee for the territory that includes, Russia (where the channel is ranked in the top ten) and the rest of the CIS. The claims made were for about US$25 million and involved allegations of deceit and breach of contract.
- A claim against a well-known international law firm for professional negligence in relation to advice arising from the collapse of one of Italy's largest catering companies. That company it transpired was the subject of substantial frauds involving Romania and Kazakhstan, which have in turn led to a criminal investigation in Italy. The case settled at trial in 2009 on confidential terms.
- On behalf of a Cypriot company, which it is alleged has received part of the proceeds of a US$100 million fraud. The allegations centre on the alleged misappropriation of monies that were to be held as security during a warranty period following the sale of a substantial Eastern European asset.
- On behalf of an executor and his companies in relation to a US$6 billion claim involving the estate of a well-known Georgian businessman and a Russian businessman.
- On behalf of a Government Agency in the successful recovery of assets owed in respect of a Confiscation Order.
- In a high profile divorce case where the client is claiming 50% of her husband's assets whom it is reported was worth £400 million.
- In the defence of two Italian nationals who faced criminal and civil proceedings in a number of countries on the basis that they had, it was claimed, hidden assets on behalf of their son which he had allegedly obtained by fraud. The Claimants obtained a worldwide freezing order which PCB had successfully discharged. The case has been reported in the main law reports eg [2009] EWHC 2316 (Comm).
If you would like any further information on the services offered by PCB, please do not hesitate to contact Steven Philippsohn or Anthony Riem.
| May 2010 | February 2009 |