Our case experience

FOREIGN CORRUPTION

• Representation of foreign national governments in proceedings for recovery of assets derived from corruption, embezzlement and fraud, as well as representation of such governments in civil and criminal proceedings including the Republic of Nigeria in the Abacha cases, involving frozen assets in Liechtenstein in an amount of more than US$ 200 million.
• Representation of the Government of Trinidad and Tobago in the investigation and civil prosecution of civil RICO and other claims, including locating and recovering the proceeds of crime, in the United States, Switzerland, Liechtenstein, Bahamas, Panama and Trinidad, arising out of a sophisticated multi-jurisdictional bid rigging and public official bribery scheme. Over US$ 40 million in assets were recovered by either freeze orders, restitution or the invalidation of contracts procured through fraud.
• Representation of the Government of Antigua and Barbuda in an ongoing civil investigation and civil claims in the United States, the Isle of Man, Switzerland and Bermuda, arising out of international fraud scheme used to siphon and launder government funds resulting from the repayment of a desalination plant financing by an arm of the Japanese government.
• Assisted a Florida law firm representing the government of a Caribbean Island nation with identifying principals and shell Panamanian corporations used to funnel funds from a bid rigging scandal related to an airport project.
• Acted for trustees in claim by the Republic of Pakistan against former prime minister Bhutto’s husband, Mr. Zardari. The Republic sought to obtain trust assets by compromising with the Liquidator of underlying companies.
• Represented foreign governments in cases where monies have been fraudulently diverted by public officials and laundered in Switzerland. Lead law firm in the recovery efforts initiated by a West African country to recover public funds embezzled over five years by a former dictator and his family, estimated between US$ 3 to 5 billion. Approximately US$ 2 billion have been frozen in ten jurisdictions and more than US$ 1 billion has been repatriated to victims.
• Successful representation of a major Japanese shipbuilding company in a multi-billion dollar malfeasance suit filed by the Government of Brazil for the alleged fraud/corruption involving the construction of a oil rig without a prior public bidding procedure.

BANKING FRAUD

• Represented a New Zealand foreign exchange firm in a claim against another foreign exchange dealer and an overseas reserve bank in relation to claims involving the authenticity and negotiability of a large quantity of commemorative currency which was to have been withdrawn from circulation by agreement among the other parties but was dishonestly presented to our client in the course of a currency transaction.
• Representation of Liquidator of Barbados bank subsidiary of a Guatemalan bank and the Guatemalan Bank Supervisory Agency in the largest bank failure in Guatemalan history, including filing the first ever Chapter 15 Bankruptcy case in the State of Florida, the tracing and recovery of assets in various jurisdictions including the United States, Grand Cayman, Barbados and Guatemala. Over US$ 50 million in assets recovered thus far in U.S. Bankruptcy Court Refco Bankruptcy and in other accounts located in the United States.
• Assisted a financial institution in international and regulatory efforts to combat cyber fraud through the use of copycat and look alike websites, which resulted in the successful termination of the fraudulent websites.
• Representation of defendants implicated in several high profile financial debacles including Banco Ambrosiano, Parmalat and Cirio, and in delicate investigations concerning allegations of bribery, corporate or financial crimes.
• Represented the joint liquidators in a 23 year liquidation arising from a major bank collapse, including fraud investigations arising therefrom. Developed an innovative scheme to repatriate unclaimed dividends to existing claimants.
• Acted for the Depositors Compensation Scheme managers in the regulators scheme for depositor protection arising from the Bank of Credit and Commerce International (BCCI), a major international bank founded in 1972, which operated in 78 countries, had over 400 branches, and claimed assets of US$ 25 billion and which became the focus of the world's worst financial scandal and a "$20-billion-plus heist" (Beaty & Gwynne 1993).
• Representation of Komercni banka in a US$ 250 million fraud involving BCL Trading GmbH involving 30 letters of credit issued by the bank at the request of BCL relating to purported sales of large quantities of agricultural products from Russia and the Ukraine. The bank believed that there were no genuine sales of produce in Russian warehouses; the invoices and warrant lists were a sham; and that certain individuals acted as BCL's accomplice in a scheme designed to defraud the Bank. Komercni banka won on every count and was awarded the full amount of its claim, which exceeded US$ 100 million. FraudNet members representing an offshore regulator successfully pursued the winding up of 7 linked offshore companies.
• Representation of a financial institution incorporated in the Cayman Islands against a former director to trace and recover sums of approximately US$ 50 million dissipated throughout Eastern Europe by entering into a series of ultra vires and fraudulent commercial contracts. Parallel proceedings pursued in the Cayman Islands and in the United Kingdom.

ASSET TRACING AND RECOVERY

• Represented an Australian manufacturer in relation to a substantial fraud perpetrated by the CFO of its New Zealand subsidiary over a five year period, including asset tracing and recovery from businesses and real estate into which stolen funds had been introduced.
• Worked under the direction of FraudNet member, and in carefully coordinated conjunction with lawyers in several other jurisdictions, to obtain Court orders in the Cook Islands requiring a local trust company to provide secret pre-action discovery in relation to its dealings with a US judgment debtor who had hidden assets in several offshore centers.
• Representation of a German individual defrauded by a group of Nigerian businessmen acting from Lebanon, Cyprus and New York in an international bank instrument fraud. US$ 800,000 was preliminary frozen in a bank account in Cyprus. Together with the FraudNet members in the British Virgin Islands, where the alleged account holder was domiciled, and Cyprus, an extraordinary ex-parte application for a Mareva injunction on freezing the account coupled with a NorwichPharmacal/Bankers Trust Order on document disclosure was filed. Worked with various governmental agencies, including the Cypriot Anti Money Laundering Unit to obtain information utilized in the Cypriot proceedings. A “Winding-up Application” was filed in the British Virgin Islands to recover monies in Cyprus bank accounts.
• Represented spouse in tracing proceeds of £2 million fraud against deceased UK businessman who placed business assets offshore but was defrauded by business colleague.
• Representation of a Jersey corporation in an action to trace assets in the Cayman Islands. The case involved the fraudulent disposition of assets and dishonest breaches of trust and concerned a number of different individuals and a host of corporate entitles in multiple jurisdictions. Assets valued at over US$ 80 million to a freezing injunction and proceedings to trace and recover a further US$ 10 million through various banking institutions and insurance companies in the Cayman Islands are ongoing. Directions are awaited pursuant to the Cayman Islands Confidential Relationships (Preservation) Law (1995 Revision).
• Representation of a UK casino in freezing the assets in the name of a fraudster, including arresting an aeroplane in the name of the fraudster’s alleged alter ego, obtaining a series of disclosure and anti-tip off orders and freezing bank accounts in various European jurisdictions.
• Worked together with the English solicitors and appeared for the successful beneficiaries in the landmark Jersey case on the scope of the constructive trust remedy in that jurisdiction, the principles of tracing, and the Pauline action (a decision influential in the development of the law of trusts).

COMPLEX COMMERCIAL FRAUD

• Represented the Hong Kong office of a major international accountancy firm in litigation over the use of offshore trusts established and controlled by that firm in a fraudulent scheme by the former directors of a New Zealand company and its solicitor to keep its major assets from creditors and a liquidator.
• Representation of a number of linked parent and subsidiary companies incorporated in the Cayman Islands and the directors of those companies accused of fraudulent dealings and dissipation of company assets valued at over US$ 200 million. The matter spanned a period of eight years and involved allegations of fraudulent share issuance and misappropriation of company assets. Civil and criminal proceedings brought in the United States cited dealings in South America, Central America, the United States and the Cayman Islands.
• Represented international stamp traders who provided stamps to a company related to two high profile Spanish entities which defrauded at least two hundred thousand victims because (i) they did not have all the stamps they had supposedly purchased for their clients; (ii) the value of the stamps was grossly overestimated. The Spanish companies are being investigated by Spanish authorities and have been declared insolvent, with claims exceeding several thousand million euros and assets of approximately 10% of such claims. Both companies have been accused before Spanish Courts of fraud, and the Audiencia Nacional is now investigating the case.
• Acted against a company related to Forum Filatélico, which purchased but did not pay for stamps amounting to €3,790,013. Simultaneously to fraud criminal proceedings, a debt claim was filed against this company, and as a precautionary measure, assets of the company were seized. Successfully attached the debtor's bank accounts in Spain, and a search for further assets is ongoing.
• Representation of a Dutch and Swiss client in the main fraud proceedings pending in Spain involving a several million Euro fraud and a hundred thousand victims.
• Representation of a Cypriot company in bringing fraud claims in various European and Caribbean jurisdictions relating to the control of a US$ 1 billion telecommunications company.
• Representation of victims of a multi-million dollar Italian fraud in bringing claims for breach of fiduciary duty against UK solicitors and in advising in relation to parallel criminal proceedings in Italy.
• Represented the Finnish and Swedish subsidiaries of International Paper in a landmark criminal and civil case (both in terms of precedent and the monetary interest at stake) concerning unlawful disclosure of business secrets by certain individuals and entities.
• Represented Finnish corporations in matters regarding alleged violation of securities legislation by their directors and/or employees.

RECEIVERSHIP

• Served as a Receiver for a German GmbH which defrauded at least 1,000 Germans in an investment fraud involving the transfer of assets to several banks in the Isle of Man, Guernsey and the British Virgin Islands, where the fraudster incorporated several companies to shield the fraud proceeds. The fraudster was detained and filed for the insolvency of the German GmbH. Upon appointment as Receiver by the German Insolvency Court, the monies held in the name of the GmbH abroad were collected. Additional information available from the files of the insolvent GmbH was researched and shared with Frankfurt Public Prosecution, which by means of official assistance, led to additional recoveries. The claims of the victims are expected to be satisfied through the Receivership.
• Assisted a Receiver appointed in a United States Federal Court with recovery of assets located in Panama which were the product of a faith based Ponzi scheme.
• Assisted Nova Scotia firm representing the court appointed Receiver of a failed Caribbean bank in successfully preventing the bank from transferring a registered Panamanian vessel in order to avoid payment of mortgage debt.
• Representation of a Federal District Court Receiver appointed in an SEC civil enforcement action in Texas involving an Internet-based fraudulent investment scheme which purportedly raised over US$ 100 million. Immediate action led to the freezing of accounts holding almost US$ 14 million. Forensic investigative efforts, both domestic and foreign, led to the recovery of additional monies, and the freezing of a further US$ 2.7 million in Luxembourg. Recoveries were also obtained from a parallel U.S. Government forfeiture proceeding, a proceeding commenced by Liechtenstein authorities, and an account uncovered in Luxembourg. As a result, the claims of over 1,400 victims have been paid in full.
• Representation of a Federal District Court Receiver appointed ancillary to a SEC civil enforcement action styled SEC v. IPIC, et al. This case involved a US$ 170 million affinity fraud that targeted church congregations. Approximately US$ 15 million was recovered, including monies identified in Hong Kong, Greece, Panama, Benin, England and Germany. A supplemental fund was established to permit church leaders to "donate" Ponzi payments back to the fund, which raised over US$ 3 million. The victims numbered over 1,000 and their claims were satisfied through the Receivership process. The case also involved parallel criminal proceedings against the principals.
• Assisted the Receivers of a liquidation trust to arrest a Cypriot registered vessel purchased with illegal funds within the context of an admiralty action requesting a declaration that the vessel was subject to a constructive trust for the benefit of the client and further requesting the rectification of the Ship Register to this effect.

FRAUD INVESTIGATION AND ANALYSIS

• Represented one of the major Italian companies listed on the Milan and NY Stock Exchanges, in relation to a complex investigation concerning conspiracy, bribery and misappropriation carried out by former managers against the company and its shareholders. Managers of other Italian and foreign companies also participated in the crimes. The investigation, pending since 2003, has involved Italian and several foreign judicial authorities.

INSURANCE FRAUD

• Representation of groups of Colombian and Austrian lenders/investors in US$ 500 million viatical insurance fraud Ponzi scheme class action lawsuit in Miami and obtained favorable settlement for both groups from funds frozen by the SEC Receiver.

PROPERTY FRAUD

• Involved in investigating a multi-million dollar California community property claim. Assets placed by husband into offshore trust to the wife’s detriment. Successfully secured the recovery of assets for the client.
• Intervention in judicial review proceedings brought by a private individual against the Attorney General of Jersey regarding a request for mutual legal assistance in a criminal matter involving a massive fraud on certain state entities of the Federal Republic of Brazil.

COMMODITIES FRAUD

• Defended associated Canadian oil companies and their Jersey subsidiaries against a multi-million pound claim brought by the Jersey subsidiary of another Canadian oil company for damages and an accounting in relation to an Iranian oil transaction.

CRIMINAL ACTIVITIES

• Initiated a criminal complaint on behalf of thousands of shareholders of a publicly owned US company, who were the victims of one of the largest “pump and dump” schemes ever investigated by the SEC, involving more than US$ 330 million of fraud proceeds laundered in Switzerland by the managers of the company. The criminal complaint was withdrawn after a settlement was reached, which provided for the payment to the victims of US$ 200 million, which had been frozen in another jurisdiction.