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Corporate Crime & Compliance UK
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November 20, 2024
5 Charged For 'Scattered Spider' Phishing Hacks, Crypto Theft
California federal prosecutors unveiled a criminal case Wednesday accusing five alleged members of the "Scattered Spider" cybercrime group of using a phishing scheme to access the confidential data of media and technology companies and steal $11 million worth of cryptocurrency from digital wallets.
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November 20, 2024
Pfizer, Flynn Still Face Fines Over Epilepsy Drug Sale To NHS
Britain's competition tribunal issued a ruling Wednesday imposing £69 million ($87.2 million) in fines on Pfizer Ltd. and Flynn Pharma Ltd. for claims they overcharged for an epilepsy drug, after setting aside a decision from enforcers and finding its own violations.
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November 20, 2024
Irish Social Democrats Run On Wealth Tax For Millionaires
Ireland's Social Democrats are campaigning for this month's general election on a 0.5% tax on individuals' assets over €1 million ($1.1 million) — excluding homes, family businesses, art and pensions — and 1% for assets over €2 million, according to its manifesto.
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November 20, 2024
Teacher Stern Breached Regs With Payments, SRA Alleges
The English solicitors regulator accused commercial firm Teacher Stern LLP and two partners of effectively providing banking services to two clients by allowing them to transfer money that was not related to an underlying legal transaction or service.
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November 20, 2024
ICO Compliance Officer Loses 'Character Assassination' Claim
The Information Commissioner's Office has beaten a claim by a compliance officer that his manager discriminated against him by trying to sway the outcome of a probe into his alleged misconduct, as a tribunal found there was limited evidence that his allegations were true.
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November 20, 2024
Watchdog Censures Insurance Agency Over Breaches In Sales
The Competition and Markets Authority censured Prima Insurance on Wednesday for failing to properly explain the costs over more than a year of a policy add-on to thousands of consumers.
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November 20, 2024
Marsh Says Greensill Bank Can't Add It To Australian Dispute
Marsh urged a court Wednesday to maintain an order banning Greensill Bank AG from dragging it into litigation in Australia linked to the collapse of the wider group, arguing that the lender is bound by an English jurisdiction clause in its contract with the insurance broker.
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November 20, 2024
All Eyes On The SFO After LC&F Ponzi Scheme Ruling
Damning findings in civil litigation that the directors of London Capital & Finance ran the bonds company as a Ponzi scheme could foreshadow the Serious Fraud Office's parallel criminal investigation into the failed £237 million ($300 million) investment business, lawyers say.
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November 20, 2024
Top UK Court Rejects Bedzhamov Russian Bankruptcy Order
The U.K. Supreme Court refused Wednesday to recognize a Russian bankruptcy order against two properties owned by banker Georgy Ivanovich Bedzhamov in Britain, confirming a legal principle that foreign courts do not have jurisdiction over English land.
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November 19, 2024
EU Sanctions Bite Russian Patent Holders At EPO
The European Patent Office has rolled out fresh restrictions on patent requests made by Russian or Russian-affiliated entities, as it looks to bring the patent authority in line with the European Union's latest round of sanctions.
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November 19, 2024
Cuban Bank Can't Block Fund's €72M Debt Claim
Cuba's former central bank can't block an offshore fund from suing it for over €72 million ($76.2 million) of unpaid sovereign debt because the lender authorized the assignment of the debt to the fund, a London appeals court ruled Tuesday.
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November 19, 2024
Court Staffer Fired For Bad Performance, Not Race
An usher who left an East London courtroom unattended, allowing a member of the public to enter and "violently throw a holy book on the court floor," has lost her race discrimination case after a tribunal found that she was dismissed because of her performance.
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November 19, 2024
Airbnb Ireland Puts Aside $1B For Tax Investigations
Airbnb has put aside €950 million ($1 billion) in Ireland during talks with the Italian Revenue Authority over a tax audit, according to company accounts reported in Irish media.
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November 19, 2024
Russian Pipeline Giant Fights Oligarch's Conspiracy Claim
Lawyers for Russian pipeline giant PJSC Transneft urged a London court Tuesday to toss out a claim by a jailed oligarch accusing it of foul play in a sale of shares, saying the deal was above board and approved by shareholders.
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November 19, 2024
FCA Charges 4 Men With Fraud Over Collapse Of Credit Union
The Financial Conduct Authority has charged four men with fraud over the collapse of a credit union for cab drivers that required a £21 million ($26.6 million) payout to more than a thousand customers from a government bailout scheme six years ago.
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November 19, 2024
Trader Can't Get Sentence Cut For £1.2M Boiler Room Fraud
A man imprisoned over a plot to trick his victims out of £1.2 million ($1.5 million) failed to get his sentence cut as a court ruled Tuesday that a judge had earlier correctly assessed his culpability in the boiler room fraud.
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November 19, 2024
FCA Updates Insider-Trading Detection Measure
The financial watchdog said Tuesday that it has changed the way it calculates its market cleanliness statistic, a tool that detects insider trading by tracking unusual stock price movements before takeover announcements.
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November 18, 2024
EU Members Face Choice Over Trump Tax Stance, Group Says
Member states of the European Union will have to pick a side if President-elect Donald Trump's incoming administration abandons global tax reform, the Tax Justice Network said Monday.
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November 18, 2024
Panama Foundations Fight Jurisdiction In $3.7B Asset Row
Two Panama-based foundations caught up in an international dispute over a late Russian oligarch's $3.7 billion fortune urged a London court to reject arguments they defrauded his daughter out of ownership of a company, arguing Panamanian courts had ruled against her.
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November 18, 2024
SFO Closes Bombardier Bribery Probe, Will Help US, Canada
The U.K.'s Serious Fraud Office announced Monday that it was closing a four-year bribery and corruption probe into Bombardier Inc. over sales to Indonesia's national carrier but said it would continue to assist U.S. and Canadian authorities.
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November 18, 2024
Pinsent Masons Launches AI Tool, Hires Transformation Head
Pinsent Masons LLP on Monday expanded its artificial intelligence offerings and the firm's ability to deliver services to customers, announcing the launch of an AI-backed anti-money laundering tool and the addition of a transformation director with experience at Barclays.
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November 18, 2024
FCA Bans Director Following Wounding Conviction
The U.K.'s financial regulator said Monday that it has banned a man from working in financial services after he told them he was looking for business opportunities overseas while he was serving a prison sentence for stabbing a man in the neck.
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November 18, 2024
HMRC's £167M Charges To Reuters Group Deemed Lawful
A London court backed HM Revenue & Customs in a case over more than £167 million ($212 million) in diverted profits tax charges issued to U.K. companies in the Thomson Reuters media group.
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November 18, 2024
Aldermore Analyst Loses Bid For Pay Over Alleged IP Breach
A bank analyst can't get compensation as she accuses Aldermore Bank of punishing her for whistleblowing about a data breach, after an employment tribunal ruled that her claims would likely fail at trial.
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November 18, 2024
Over 5,000 Woodford Investors Sue Hargreaves Lansdown
More than 5,000 investors in a fund run by stock picker Neil Woodford are suing Hargreaves Lansdown over the fund's collapse, a group claim that is expected to exceed £200 million ($253 million), according to claims manager RGL.
Expert Analysis
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Key Takeaways From Proposed EU Anticorruption Directive
The European Commission's anticorruption proposal, on which the EU Council recently adopted a position, will substantially alter the landscape of corporate compliance and liability across the EU, so companies will need to undertake rigorous revisions of their compliance frameworks to align with the directive's demands, say lawyers at Linklaters.
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Implications Of EU Network Directive For Data Center Owners
With the October implementation deadline of the EU’s new cybersecurity regime under the Network Systems Directive fast approaching, data center owners and operators need to consider compliance steps, and U.K. companies providing services in the EU should take note, say lawyers at Bird & Bird.
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New EU Guidelines Provide Insights On Global AI Regulation
The European Data Protection Supervisor’s first guidelines on artificial intelligence only apply to governmental bodies, but together with the EU AI Act they demonstrate a strong and prescriptive policy, and offer a glimpse into what could be the next phase in world AI regulation, says Kevin Benedicto at Redgrave.
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Boeing Plea Deal Is A Mixed Bag, Providing Lessons For Cos.
The plea deal for conspiracy to defraud regulators that Boeing has tentatively agreed to will, on the one hand, probably help the company avoid further reputational damage, but also demonstrates to companies that deferred prosecution agreements have real teeth, and that noncompliance with DPA terms can be costly, says Edmund Vickers at Red Lion Chambers.
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Keeping Up With Carbon Capture Policy In The US And EU
Recent regulatory moves from the U.S. Environmental Protection Agency and the European Commission in the carbon capture, sequestration and storage space are likely to further encourage the owners and operators of fossil fuel-fired power plants to make decisions on shutdowns or reconfiguration to meet the expanding requirements, say Inosi Nyatta and Silvia Brünjes at Sullivan & Cromwell.
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How AI Treaty Will Further Global Governance Cooperation
The EU’s recently adopted treaty on artificial intelligence represents a significant step toward global cooperation in AI governance in emphasizing human rights obligations, although additional guidance and clarity would be beneficial to minimize varied interpretations at national level, say lawyers at Eversheds Sutherland.
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EU Investor-State Dispute Transparency Rules: Key Points
The European Union's recent vote to embrace greater transparency for investor-state arbitration will make managing newly public information more complex for all parties in a dispute — so it is important for stakeholders to understand the risks and opportunities involved, say Philip Hall, Tara Flores and Charles McKeon at Thorndon Partners.
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How Regulation Of Tech Providers Is Breaking New Ground
The forthcoming EU regulation on digital operational resilience and the U.K. critical third-party regime, by expanding the direct application of financial services regulation to designated technology providers, represent a significant development that is not to be underestimated, say David Berman and Emily Lemaire at Covington.
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Takeaways From EU's Initial Findings On Apple's App Store
A deep dive into the European Commission's recent preliminary findings that Apple's App Store rules are in breach of the Digital Markets Act reveal that enforcement of the EU's Big Tech law might go beyond the literal text of the regulation and more toward the spirit of compliance, say William Dolan and Pratik Agarwal at Rule Garza.
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Why Trustees Should Take Note Of Charity Code Consultation
The Charity Governance Code Steering Group's recently launched governance code consultation is unlikely to result in a radical overhaul, but with the bigger issue being awareness and application by smaller underresourced charities, trustees should engage with the process to help shape the next iteration of this valuable tool, says Chris Priestley at Withers.
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What EU Net-Zero Act Will Mean For Tech Manufacturers
Martin Weitenberg at Eversheds Sutherland discusses the European Council’s recently adopted Net-Zero Industry Act and provides an overview of its main elements relevant for net-zero technology manufacturers, including benchmarks, enhanced permitting procedures and the creation of new institutions.
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Complying With EU Commission's Joint Purchasing Rules
One year after the European Commission released its revised guidelines on horizontal cooperation agreements, attorneys at Crowell & Moring reflect on the various forms such agreements can take, and how parties can avoid structuring arrangements that run afoul of competition law.
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Tips For Implementing EU Sustainability Reporting Guidance
Lawyers at Sullivan & Cromwell discuss the European Financial Reporting Advisory Group’s recently published guidance on double materiality assessments and offer takeaways on achieving a sustainability directive-compliant process that could enhance clarity and consistency among multinational stakeholders.
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How CMA's AI Strategic Update Addresses Industry Risks
The Competition and Markets Authority’s recent artificial intelligence strategic update, setting out the regulator’s understanding of AI risks and how it intends to address them, is indicative of its focus on incumbent technology organizations, although future political developments in the U.K. may also shape the CMA's approach, say Christopher Foo and Carol Slattery at Ropes & Gray.
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Labour's 'Fresh Approach' To Tackling Financial Crime
Given newly elected Prime Minister Sir Keir Starmer’s background as a criminal defense lawyer and director of public prosecutions, an administration with strong views on financial crime can be expected, and revenue raising and proceeds of crime recovery are likely to be at the forefront, says Matthew Cowie at Rahman Ravelli.