Our latest event was a fascinating look into offshore fraud investigations with a focus on asset tracing and recovery. It was particularly interesting to learn how regulators in offshore jurisdictions may be able to assist victims of fraud in the recovery of their monies.
Mark Ballamy, a forensic accountant and the Senior Partner of Ballamy LLP, explained the UK’s equitable rules of asset tracing illustrating each rule with a diagram depicting a fraudulent transaction. Mark explained how the rules of asset tracing have evolved over time and how they are continuing to evolve. The recent introduction of the concept of “a co-ordination” between funds received by a fraudster and the disbursement of those funds by the fraudster introduces the possibility of circumventing the overdraft rule and the lowest intermediate balance rule in appropriate circumstances. Mark’s overriding message was that those tracing assets need to be aware of the rules but must be ready to challenge these rules to assure fairness for the victims of fraud.
David Wilson is a Jersey lawyer with Lacey Advocates and has accumulated over 25 years’ experience as a commercial and trust litigator. David explained the determination of the Jersey Financial Services Commission and the Jersey Royal Court in preserving the island’s excellent reputation as a safe and reliable place in which to conduct business. David then explained the various remedies available in Jersey to victims of fraud to recover monies both from fraudsters and from those who owe victims duties of care. David emphasised that the Royal Court always strives to achieve fair outcomes and, in fulfilling this objective, is empathetic to victims of fraud in seeking to recover losses. David’s slides may be viewed here.
Jamie Biddle was the Deputy Director of Enforcement at the Jersey Financial Services Commission prior to joining Lacey Advocates earlier this year. Jamie explained the circumstances in which offshore regulators such as the JFSC may be able to exercise their powers to assist victims of fraud. Jamie illustrated how offshore regulators may be able to assist by referring to a recent example of the JFSC encouraging a Jersey trust company to compensate investors of losses as an integral part of an overall settlement of regulatory disagreements between the JFSC and the trust company. Jamie’s slides can be viewed here.
Our next event is to be held in Birmingham on Thursday 12 November and will cover corporate governance and compliance. With the assistance of DLA Piper’s award winning film, “At What Cost?” the session will consider issues arising from the expansion in Asia of fictional company Epticom, where a cultural shift in the company sparks unfamiliar multi-jurisdictional regulatory and legal challenges, including fraud, bribery and insider dealing. For more information and to book your place, please click here.
