REUTERS |
September 30, 2015

Failure to prevent economic crime fails to get off the ground

Justice minister Andrew Selous stated yesterday in an answer to a written question submitted by Conservative MP Byron Davies that the Ministry of Justice has decided to stop work on the lauded failure to prevent economic crime offence. Byron Davies had asked when the Justice minister expected that the new offence; which would strengthen corporate criminal liability, would be introduced. Continue reading →

REUTERS |
September 29, 2015

Criminal Courts Charge

Criminal Courts charges apply to all adult defendants who are convicted in either the magistrates’ or the Crown Court for offences which have been committed on or after 13th April 2015. This applies to all cases except those in which an absolute discharge, a hospital or a guardianship order is imposed. It applies in addition to any other financial penalty which is imposed as part of the sentence such as a fine, compensation or a prosecution costs order. It is mandatory and not subject to means testing and must be imposed in addition to a victim surcharge. Continue reading →

REUTERS |
September 25, 2015

Criminal proceedings commenced against Sepp Blatter, President of FIFA in Switzerland

The Attorney General of Switzerland (OAG) has confirmed the opening of criminal proceedings against the Sepp Blatter, the President of FIFA.

Mr Blatter was questioned, and his office and FIFA headquarters were searched on 25th September 2015. Data was seized. The suspicions relate to criminal mismanagement and suspicion of mismanagement.

The Attorney has provided particulars of two suspicions:

  • The OAG suspects that on 12 September 2005 Mr Joseph (Sepp) Blatter signed a contract with the Caribbean Football Union (with Jack Warner as the President at this time), which was unfavorable for FIFA. There is also a suspicion that, in the implementation of this agreement, Mr Blatter violated his fiduciary duties and acted against the interest of FIFA and/or FIFA Marketing & TV AG.
  • Additionally, Mr Blatter is suspected of a disloyal payment of CHF 2 Mio. to Michel Platini, President of Union of European Football Associations (UEFA), at the expense of FIFA, which was allegedly made for work performed between January 1999 and June 2002. This payment was executed in February 2011.

In addition, the OAG asked Mr Michel Platini, the President of UEFA, to provide information subject to Article 178 of the Swiss Code of Criminal Procedure.

The earlier investigations in relation to FIFA were covered in an earlier blog. In May, seven FIFA officials were arrested in Geneva, and currently face extradition proceedings to the USA.

The questioning of Mr Blatter is a significant development in the FIFA investigation. The UK’s Serious Fraud Office released a statement in May 2015 that “The SFO continues actively to assess material in its possession and has made plain that it stands ready to assist continuing international criminal investigations”. No doubt today’s developments will lead to further comment from the SFO.

Practical Law David Bacon
REUTERS |
September 25, 2015

Volkswagen

The Volkswagen diesel emissions investigation continues to move rapidly.

  • The US Environmental Protection Agency, has suggested Volkswagen could face penalties of up to $24 billion.
  • Media has reported that the US Justice Department’s Environmental and Natural Resources Division has launched a criminal investigation (although this is not directly confirmed) and regulators in Europe, Canada and Asia are said to be investigating.
  • The Chief Executive of Volkswagen, Martin Winterkorn, has resigned.

There has yet to be any comment from any UK regulator or prosecutor in relation to Volkswagen. Until further investigation or admissions become public, it remains to be seen whether the problem identified in the US and parts of Europe has reached the UK. However, given the high profile nature of the case, some agencies in the UK must be considering whether to open an investigation. Continue reading →