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Serious Fraud Office Annual Review

Issue 5: December 2024

Serious Fraud Office Annual Review

Editor's Note

Johanna Walsh - Mishcon de Reya

Welcome to our fifth annual SFO Enforcement review. 

In this review we look into the SFO's activities in its first year under the leadership of its Director Nick Ephgrave QPM.  

This year saw the SFO announce three new investigations into Signature Group, Carlauren Group and the Thales Group respectively.  

The new investigations continued in part the trend that we discussed in last year's review of the SFO choosing to focus its attention on domestic fraud. However, the investigation into suspected bribery and corruption involving the multinational aviation and defence electronics company, the Thales Group, does see the SFO turn its attention to the type of cross-border bribery cases that many had become accustomed to seeing it pursue in recent years. 

We then turn our attention to what promises to be a potentially busy 2025 for the SFO. The new year will see the SFO prosecute two trials. The first concerns an alleged fraudulent investment scheme involving Ethical Forestry Limited and the second involves alleged fraud committed by four individuals in connection with the collapse of Patisserie Valerie Plc.  

The coming year will also see the corporate failure to prevent fraud offence come into force. The Government guidance for this new offence, which partners from our team were involved in helping to formulate, was released in November.  

Nick Ephgrave has already stated that he wants the SFO to be the first agency to bring a prosecution for this new offence. This, together with the changes to corporate criminal liability which came into force at the end of last year, means that 2025 is potentially going to be a very busy year for the SFO.   

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Ongoing investigations

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).

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Criminal proceedings/matters concluded

The SFO achieved successes, including a conviction in the Axiom fraud case, where the orchestrator Timothy Schools received a 14-year sentence for defrauding investors of over £100 million.

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Deferred Prosecution Agreements

The SFO has not entered into any deferred prosecution agreements during 2024. However, the end of 2023 did see the Crown Prosecution Service enter into its first ever deferred prosecution agreement ("DPA"), with global online sports betting and gaming business Entain plc ("Entain").

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Proceeds of crime results

In January 2024 the SFO secured £220,000 from Jeffrey Revelle-Reade. Mr Revelle-Reade, an Australian national, was convicted in 2014, of defrauding investors of £70 million, in respect of which he was sentenced to nine years imprisonment.

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Reviews and reports

In April the SFO published its Strategic Plan for 2024-2029 ("the Plan") setting out its strategy for fulfilling its mandate to fight complex financial crime and enhancing the UK's reputation as a safe place to do business.

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What to expect from the SFO in 2025

The SFO's 5-year plan (2024-2029) and Nick Ephgrave's public speeches have focused on improvements to day-to-day management and working practices. For example, these goals envisage end-to-end casework management and a push for "a disclosure regime that is fit for today's challenges". These focuses may be more necessary than ever in light of the SFO's investigation into internal disclosure system issues, which may have impacted the administration of Libor convictions between 2014 and 2016.

Serious Fraud Office Annual Review Issues

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