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