Machkevitch
The SFO has decided not to contest the appeal by Anna Machkevitch against her 2020 conviction for failing to provide material during a bribery investigation into Eurasian Natural Resources Company (ENRC). The SFO had been investigating ENRC since 2013 for suspected fraud, bribery, and corruption in its African and Kazakh operations. However, the case was closed in 2023 due to a lack of sufficient admissible evidence.
Machkevitch's appeal follows a High Court ruling in December, where Mr Justice David Waksman found that the SFO had engaged in misconduct by inducing ENRC's then-lawyer, Neil Gerrard of Dechert, to leak confidential information, which led to the opening of the investigation. The court ruled that the SFO was liable for "substantial" damages, as the investigation would not have been initiated without this misconduct. The SFO plans to appeal the findings of fact and liability from this ruling.
ENRC is seeking significant damages from Gerrard, Dechert, and the SFO. Meanwhile, Machkevitch's conviction was the first under a section 2 notice, which requires cooperation in SFO investigations.
The SFO secured another conviction related to the ENRC investigation in 2023, when solicitor William Osmond received a suspended sentence for document forgery and tipping off a client about a linked money laundering probe. The SFO has indicated it would oppose any appeal by Osmond.
Separately, ENRC sued the SFO and former prosecutor John Gibson and investigator Anthony Puddick for allegedly leaking investigation details to the press. A seven-week trial was listed earlier this year in for October, however the parties agreed to settlement at the very start of the trial. The terms of the agreement remain confidential, but it is expected that the SFO agreed to pay ENRC an undisclosed amount as part of the agreement.
The SFO still faces a separate trial to determine the quantum of costs it must pay ENRC over the conduct of its investigation following the ruling of the High Court on causation and loss which went against the SFO.
Glencore
The SFO charged six ex-Glencore employees with corruption related to the company's oil operations in West Africa. The SFO's probe, initiated in December 2019, led to Glencore Energy (UK) admitting to bribery charges in June 2022, resulting in a £280m penalty.
The accused, including former Glencore oil CEO Alex Beard and four others, face various charges of conspiring to make corrupt payments to officials in Nigeria, Cameroon, and the Ivory Coast over several years. The allegations also include conspiracies to falsify documents.
The trial of the six individuals is scheduled to begin on 1 June 2027 and is expected to last for six months.
Commenting on the decision, Nick Ephgrave, emphasised the significance of tackling overseas corruption. This could be a sign that the SFO is setting out to redefine its stance against international corruption. Under previous director Lisa Osofsky, the authority gained a reputation for focusing on domestic fraud, raising questions about the purpose the SFO served and its capability to tackle large-scale international corruption cases.
In what could be a defining case for the SFO, disclosure is likely to be a key battleground. The agency will be keen to demonstrate it has learned from the Calvert-Smith review into the handling of the Unaoil investigation, the Altman review into the Serco trial collapse, and the collapse of the G4S trial last year. With a new director keen to demonstrate that the SFO is fit for purpose, time will tell if the SFO have got their house in order.
Gavin Woodhouse, Northern Powerhouse Development Group, and MBi Group
In July this year the SFO provided a short update on its three-year-long investigation into Northern Powerhouse Development Group (NPD) and MBi Group. The agency stated that a number of interviews had taken place and further interviews were planned. Whilst various lines of enquiry were being pursued, the SFO could not comment further given the investigation is ongoing.
The update is not much succour to the complainants in the case. Between 2013 and 2019 over 1,000 individuals are thought to have invested around £80 million in Woodhouse's companies, which promised healthy returns on hotel rooms, off plan care home rooms and lodges. NPD's administrators have estimated that the £80 million was used to buy around £25 million worth of hotels, whilst the BBC reported that some investors had been told Land Registry Documents held by investors were 'worthless'.
The SFO announced the investigation in 2021 commenting to the BBC that its aim was to 'deliver justice for victims' adding 'if we obtain convictions and compensation is appropriate and possible, we will seek to return monies to victims'.
As part of its July 2024 update the SFO explained that 'this investigation will involve reviewing a large volume of material' and 'is expected to take some time'. Notwithstanding the length of time this matter has taken so far, the SFO added 'we endeavour to progress the investigation as expeditiously as possible and ask you to please be patient while we do so.'
Raedex Consortium
Raedex Consortium was part of an investment scheme concerning car leases. Following a series of restrictions put on Raedex Consortium by the Financial Conduct Authority (FCA) in 2021 due to concerns about the company's finances, the company went into administration. The SFO launched their investigation into the alleged fraudulent activities of the Raedex Consortium in April 2021.
On 19 January 2024, the SFO charged former directors of Raedex Consortium, Reginald Larry-Cole and Scott Martin, with various counts of fraud. It is alleged that the defendants gave false information to investors and encouraged them to pay into the scheme whilst knowing that the investments were not financially backed.
The Raedex Consortium prosecutions are safely in the SFO's wheelhouse as a prosecutor poised to tackle serious domestic fraud and were part of an initial flurry of activity once Nick Ephgrave entered office. Ephgrave has stated that the prosecution of Mr Larry-Cole and Mr Martin is an important step forward in seeking justice for the “Hundreds of people [who] suffered significant losses when this well-marketed, seemingly safe car hire scheme collapsed."
Mr Larry-Cole and Mr Martin are due to be tried in September 2026
London Mining Plc
Following a lengthy investigation into the activities of London Mining Plc, the SFO charged three individuals relating to the alleged payment of bribes to gain an advantage for the company in relation to its mining business in Sierra Leone.
In 2023, Graeme Hossie, the former CEO who is represented by Mishcon de Reya, and Rachel Rhodes the former CFO, were charged in relation to two counts of corruption between 2009 to 2012 and 2010 to 2014. Former consultant, Ariel Armon was charged with one count in relation to corruption between 2010 to 2014.
Disclosure failings are a recurrent topic when discussing the SFO, however the agency is working hard to improve its image in this regard, claiming earlier this year that it is confident that disclosure is not an issue that will affect the London Mining case, having revisited its searches earlier this year (further to problems with its software systems sparked by the Libor prosecutions).
The case has been provisionally listed for trial in April 2026.
Petrofac Ltd
In September 2021 Petrofac entered into a plea agreement with the SFO and pleaded guilty to seven offences of failing to prevent bribery between 2011 and 2017. Arising out of the company's conviction and in a bid to hold the individuals responsible to account, a former senior executive at Petrofac has already been convicted, however the SFO's investigation into the conduct of other individuals continues.
At the start of 2024 the SFO charged Marwan Chedid, Petrofac's former COO with three counts of bribery carried out between 2012-2018, as well as the former senior executive George Salibi with two counts of bribery spanning the same period. The two men are accused of offering/paying agents over $30 million USD to influence contracts in Petrofac’s favour. The contracts were allegedly worth $3.3 billion USD and related to oil facilities in the UAE.
The prosecution of Chedid and Salibi, who are both resident in Dubai and are accused of offering and paying bribes in the Middle East, is an example of the SFO not completely shying away from international bribery and corruption cases in favour of domestic fraud matters. Despite some challenges concerning some of the SFO's previous international bribery and corruption cases, the nature of this case shows that the SFO is in fact committed to engaging with complex investigations abroad and that it is seeking to establish its reach over corruption globally to protect the reputation of UK business and bring those alleged of committing serious economic crime to account, no matter where they reside or conduct their business.
The trial is due to take place in October 2026.