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A joint investigation between the Assets Recovery Agency, Thames Valley Police and the Serious Fraud Office

A joint investigation between the Assets Recovery Agency, Thames Valley Police and the Serious Fraud Office

ASSETS RECOVERY AGENCY News Release issued by The Government News Network on 13 November 2007

A joint investigation between the Assets Recovery Agency, Thames Valley Police and the Serious Fraud Office has led to a confiscation order worth nearly £41m - the largest believed to be secured under criminal proceedings to date.

The order is the result of a serious fraud case involving Gerald Smith, who is currently serving an eight-year prison sentence after being found guilty to the misappropriation of funds belonging to a software dot-com company, Izodia plc in September 2006.

Home Office Minister Vernon Coaker who has lead responsibility for asset recovery, said: "I would like to congratulate the Assets Recovery Agency, the Serious Fraud Office and Thames Valley Police on this landmark achievement. It is an excellent example of the multi-agency approach to seizing assets from criminals and reinforces our message to them that crime doesn't pay. Asset recovery is critical to the fight against all levels of crime and is one of the Government's top priorities for law enforcement.

"Our new aim is to double last year's target of £125million assets seized to £250million by 2009/2010. This is an extremely challenging target but we have an action plan in place to help us to confiscate even more from criminals and achieve our long term vision of depriving them of up to £1billion."

The case began in 2002 following a complaint made by the Royal Bank of Scotland International into suspected fraud surrounding missing funds. Dr Smith was subsequently charged in 2005. Following his successful criminal conviction of Dr Smith, The Assets Recovery Agency, working in partnership with the SFO and Thames Valley Police undertook a detailed financial investigation. The case follows a lengthy financial investigation by the Assets Recovery Agency, the Serious Fraud Office and Thames Valley Police.

In welcoming the successful result, ARA Deputy Director of Operations, Charlie Dickin, said: "I'm delighted with this result which is an excellent example of what we can achieve when working closely with our partners. This was a lengthy and complex investigation which has required close collaboration with a number of agencies, utilising both the skills of our financial investigators and those working within the SFO and the police service. We will continue to ensure that we pursue all areas of criminal activity to ensure that, wherever possible, we remove the proceeds of all types of illegal activities."

Dr Smith has been ordered to pay £40,956,911 within 12 months.


Notes for Editors:

1. The Proceeds of Crime Act 2002 created the Assets Recovery Agency and in addition to confiscation proceedings pursuant to a criminal conviction provided completely new powers to allow ARA to seek civil recovery of the proceeds of unlawful activity by an action in the High Court. The Agency can also issue tax assessments where there are reasonable grounds to suspect that there is taxable income, gain or profit from criminal conduct.

2. In addition to these unique powers, the Agency is committed to building capacity for effective financial investigation throughout the law enforcement community and it offers its expertise to other agencies to assist them in confiscating criminal assets.

3. The Agency is playing its part in the multi-agency approach to deliver the Government's Asset Recovery Strategy. Under the cross government initiative 'Payback', the tracing of and recovery of assets is seen as an important element in the delivery of justice, and sends out a strong deterrent message. The overall aims of the strategy are to make greater use of the investigations of criminal assets in the fight against crime; recover money that has been made from crime or which is intended for use in crime; prevent criminals and their associates from laundering the proceeds of criminal conduct, and detect and penalise such laundering where it occurs; to use the proceeds recovered for the benefit of the community.

4. On 11th January 2007, the Home Office laid a Written Ministerial Statement before Parliament setting out Government proposals to merge the Assets Recovery Agency (ARA) with the Serious Organised Crime Agency (SOCA), and to extend to prosecutors the power to launch civil recovery action under the Proceeds of Crime Act 2002. The Written Ministerial Statement can be viewed at http://www.assetsrecovery.gov.uk/AboutARA/. Any proposed merger will require primary legislation. In the meantime ARA will continue to operate as before and use its powers to the full in proceeding with all cases under active litigation as well as adopting new cases from referring agencies in the criminal enforcement community.

Assets Recovery Agency, PO Box 39992
London EC4M 7XQ

E enquiries@ara.gsi.gov.uk http://www.assetsrecovery.gov.uk

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