Five residences across south east England were targeted in a Serious Fraud Office swoop today. Supported by the Metropolitan, Kent and Essex police forces, the searches involved 40 investigators and officers. A number of vehicles were also searched.
Search warrants were obtained, under the Proceeds of Crime Act 2002, to assist in the identification of benefit obtained by six defendants facing trial for conspiracy to defraud investors (See note 1).
The criminal allegations arising from the fraud investigation centre on the marketing of shares from Spain to investors in the UK in what is commonly known as a 'boiler room' fraud. The companies marketing the shares, between 2003 and 2007, were Tresaderns & Partners SL, Price Stone Group SL and Anderson McCormack SL. Losses to investors are believed to exceed $100 million.
First action of its kind
The SFO's proceeds of crime unit (see note 2) organised today's action as part of an inquiry running in parallel to the criminal investigation. It is the first occasion the SFO has used warrants under the Proceeds of Crime Act 2002 not in tandem with an evidential search. Hitherto, search actions to gather information on the benefits accrued by suspects were coupled with searches for evidence in the underlying fraud investigation. Today's action was wholly focussed on identifying the benefit of the alleged crime and assets held by the defendants.
Notes:
1) The defendants who are the subjects of today's actions are: Emma Farmer, Michelle Coleman, Philip Morris, Daniel Gooding, Shaun Rumsey and Jon Emery. They were charged in March of this year with conspiracy to defraud investors and are to be tried next year. For further details please see press release issued on 5 March 2010: Alleged boiler room conspirators charged.
2) The SFO proceeds of crime unit was created in May of 2009. It is comprised of Accredited Financial Investigators and lawyers who are all specialists in tracing and securing criminal assets. Its objective is to identify the money and property which criminals have accumulated through their illegal activity and deprive them of it, returning as much of it as possible back to the victims. In its first year of operation it was responsible for returning £4 million to victims.
3) The Proceeds of Crime Act 2002 is applied to investigate, as fully as possible, the extent of the criminal benefit to defendants and to identify any assets they have available to satisfy any confiscation or compensation order which may be made by the court following any conviction.
Serious Fraud Office, Elm House, 10-16 Elm Street, London,
WC1X 0BJ
Press Office tel: 020 7239 7001/7045/7000/7004 or mobile: 0781 807 6688
Main switchboard tel: 020 7239 7272 press.office@sfo.gsi.gov.uk - or via - www.sfo.gov.uk
