Rr Briefing Guide 2019 Civil Fraud Copy

private and public shares, tangible factors exist which make it necessary to and remove any documents and material facing the accusations. They are usually judge. Receivership orders are generally Cross-border Fraud of that agreement as a means of injuring the • When a person acts as a trustee to hold These may not necessarily have their origins in • Deliver up assets to the claimant’s This is because if you do: • The defendant knew that the representation Other Orders Available to Challenging Orders property (such as vehicles and land) and impose an order that covers assets outside of described by the order. coupled with a “gagging order” to prevent applied for after a freezing order is in place. claimant and that the claimant suffered a loss. property which belongs to the a fraud claim but fraud allegations may form solicitors or make a payment into court A leading, award-winning UK and global law firm was false Those Seeking to Recover intangible property (such as goodwill in a the UK. the bank informing their customer that This is because a receivership order is applied This can lead to investigations being beneficiary part of any legal action. • You lose control. The police have their • The defendant intended that the Assets Just as anyone is entitled to bring a civil fraud business or intellectual property rights). The primary purpose of a search order is the account information has been for on the grounds that a freezing order - conducted in a number of countries Examples of unlawful means conspiracy • When an agent agrees to act on behalf The court may also order that a receiver own methods of securing evidence representation would induce the claimant to claim, an individual who is named as the The court will look into the location and nature the preserving of evidence that is relevant disclosed. The gagging order will be for a which freezes assets but still leaves them in the and/or proceedings being brought in include: of a principal and assumes power to be appointed over your assets. This is which include arrests, raids and act Chabra Orders Sham Trusts alleged perpetrator of a fraud has every right A freezing order is a powerful form of of the assets in question, the level of disruption to a claimant’s case. A search order is set period of time to allow analysis of the hands of the respondent - provides more than one jurisdiction. Knowledge alter his legal position likely to happen if the court feels it is to contest the allegations and the civil law interviews under caution. You can have • The claimant suffered a loss • A director conspiring with a company of relief, as it restrains a defendant from caused by freezing them and at the effect on generally used to prevent a defendant Anyone involved in fraud will usually make use information received, although it can be inadequate protection; hence the need for a and experience of the law in a variety of • Brokers who introduce agents to their A trust will be deemed a sham when the unable to trust you to deal with the assets means by which the claim is pursued. One no influence over those. Additionally, which he is a director. dealing with the asset. Failure to comply any third parties and any litigation; including from destroying or hiding documentary or of third parties – such as a marital partner or extended on application. receiver to be appointed to take control over countries will be essential in such cases. clients requirements for the creating of a valid trust without breaching a freezing order. important way in which this can be done is to the pace at which assets are secured (if Bringing A Civil Fraud Claim • A shareholder conspiring with a company in at all) is very slow in these situations. with the freezing order will result in any related litigation in other countries. other evidence they possess which might associate - to hold assets for them, as this the asset. have not been satisfied. A sham trust must challenge the order that the person who is Unjust Enrichment which he owns shares. A breach of fiduciary duty can be • There can be situations where a civil In order to pursue fraud-related claims, it is separate contempt of court proceedings support the claimant’s case. helps disguise their true ownership. A Chabra Receivership Orders also involve some form of deception. If this is Such potential obligations can seem bringing the claim has obtained or is seeking to • A parent company conspiring with its characterised as dishonest if one person case against the defendant will not be important to obtain strategic advice. Such where the court has the power to impose Disclosure Orders Order is an interim relief that can be used in Receivers can be appointed for assets such as the case, the so-called trust is a nullity, excessive and unnecessary. This is obtain. The essence of unjust enrichment relates subsidiary deliberately acts knowing that the course able to proceed until the criminal advice can enable the tracing and, where a sentence of imprisonment. A search order only tends to be made circumstances where third parties hold the A receiver may be appointed at the rental properties, dividends from shares meaning it is legally void. If this is the case and precisely why you need to appoint a legal to wrongdoing; when the defendant is • Inducing a breach of contract. of action is contrary to the other party’s proceedings are over. possible, freezing of stolen assets. In large-scale fraud claims, disclosure when there is no alternative way of defendant’s assets that are the subject of the pre-judgement stage in an effort to (where they may have full power to exercise the assets have been transferred to a trustee, team with the appropriate expertise to Freezing Orders enriched at the expense of the claimant. • The police do not always have the In order to make a successful application applications are quite often very important. ensuring that justice is done for the fraud accusations. preserve assets until a judgement has the rights of the shareholder) and assets that interests or is recklessly indifferent to that they will be held in a resulting trust for the represent you. It can take the most An example would be if a person gives The advantage to bringing a claim for possibility. resources to bring a fraud investigation There are a number of tools available to for a freezing order you will have to show applicant. For this reason, it is important been made in proceedings. This is a tool belong to or are controlled by the respondent settlor – the original possessor of the assets – strategic, experienced legal The applicant has a duty to make full and frank money to another person to invest in an conspiracy is that it enables the claimant to to a swift conclusion, so a criminal recover any potential losses. These are known that there was an underlying cause of This is because they can help establish: that expert legal advice is sought before The third party is not alleged to be liable for the that assists post-judgement for the until the matter has been legally resolved. representatives to persuade a court to disclosure to the court when seeking a freezing “Exceptional lawyers. Quality of agreed venture but the second person potentially target a wider range of defendants; If someone owes a fiduciary duty to investigation could take much longer as interim reliefs. While interim reliefs can be of action (the alleged fraud) and that there is applying for a search order, as the fraud or directly accountable to the claimant. realisation of assets to meet any Defending a receivership order can involve drop such conditions. order. This is in order to ensure fairness in keeps the money for himself instead of including many who may not be central another and engages in fraud, it amounts preparation is a particular strength." than civil proceedings. great use in helping to locate and regain assets a real risk of dissipation. If this course of • The current location of the property or likelihood of obtaining one and the The beneficial owner is still considered to be judgement and it is increasingly used by arguing that appointing a receiver is Defending Civil Fraud Claims circumstances where the respondent is not investing it. If the circumstances are such characters in the fraud but still played a part in CHAMBERS UK GUIDE, 2019 action is taken, it must be done quickly. proceeds from it possible value of other options need to be the defendant but a Chabra Order enables the claimants in civil fraud proceedings. unnecessary, a step too far, a substantial to a breach of the core obligation of It is likely that you will have to serve an • A criminal prosecution – even a that have been taken fraudulently, it is it being carried out. But any such claim will before the court to put his case. When such an If a civil fraud case goes to court, it will do so thorough, innovative approach ensures the successful one – will not guarantee that Failure to do so could lead to criticism • The identity of potential defendants and the assessed. claimant to freeze assets that are in the intrusion into the respondent’s affairs and / or that it is unjust for the defendant to retain loyalty. Fiduciary duties provide the basis Receiving an Order affidavit within two days, disclosing all of important that they are employed swiftly. need to be thought out and planned carefully injunction is made “without notice” to another after a huge amount of preparatory work right strategy and tactics are employed so the person who reported the fraud will from the court for delaying and may lead basis for claims against them possession of the third party. It involves a receiver taking control or likely to have a significant impact on the that enrichment, then the law of unjust for a course of action that is flexible in its your assets valued over £1,000. Once Otherwise there is the risk that the assets before being pursued. party (where the subject of the order being • The value, location and nature of the assets enrichment will provide a way for the application to a wide range of factual When an order is made against you, it is has been carried out. Such work may that the decisions that are acted on are the regain their assets. could be dissipated – spent, squandered or the court to believe that there is no risk of Without Notice Applications exercising powers of ownership over the business or assets that are the subject of the again, the right legal expertise can be vital applied for is not present) those applying for against which any judgement against the claimant to seek its return. circumstances. As a result, establishing a important that you take legal advice involve investigating aspects of a case that right ones. otherwise placed out of reach of the legitimate dissipation. Any application must show Norwich Pharmacal Orders relevant assets, depending on the terms intended receivership. The chances of in compiling this or in seeking a later the order must provide a return date at which defendant must be enforced Breach of Fiduciary Duty breach of fiduciary duty makes it possible immediately. The order will set out a number involve a number of countries and The standard of proof in civil law cases is owner – if action is not taken quickly enough. that you have a “good and arguable claim” When an application is made for a freezing 29-052 of the order. A receivership can be made convincing a court that a receiver is not deadline for completing it. Strict the other parties can be present. This is so the jurisdictions. On this page, we cover the major issues that the “balance of probabilities”. against the defendant – which is why you • Critical facts necessary to make out the order, disclosure order or search order, it in respect of foreign assets and over necessary may depend on the ability to offer Unlawful Means Conspiracy to impose a range of remedies against the of directions that you will have to comply with. compliance with a freezing order is The risk of dissipation, therefore, has to be There are a number of fraud claims that can case can be reviewed by the court with the relate to civil fraud cases and outline how need the most skilled lawyers in this area claimant’s case, which fraudulent is made ex-parte. This means that the The purpose behind a Norwich Pharmacal foreign debts. an alternative legal approach. This may include person who has breached that duty – If you do not, you will be in breach of the order; required and you should take all possible assessed immediately. be brought regarding the concept of a breach benefit of submissions from the defendant. Rahman Ravelli’s specialist civil fraud team best to respond to certain situations. This is a lower threshold than in criminal of law. defendants might otherwise seek to deny claimant – who is claiming to have been Order is to enable the victim of alleged offering certain undertakings to the court or A claim for fraud against more than one remedies that do not just involve which could lead to contempt proceedings. steps to ensure that you do comply with it. of fiduciary duty. • The facts from a disclosure order at an early defendant will most likely include a claim compensation and that are not normally members have the legal expertise and the proceedings, where an accusation must Interim reliefs include: the victim of the fraud - is in attendance at wrongdoing to obtain information that will Receivership operates as an injunction, involving third party independent experts to The return date is usually a couple of weeks network of international contacts to ensure Civil Proceedings or Criminal be proved “beyond reasonable doubt” World Wide Freezing Orders stage in proceedings can be invaluable in court but the respondent – the person enable them to sue the alleged wrongdoer. restraining the respondent from receiving manage certain aspects of the business or for conspiracy. A conspiracy claim allows a available in a case that does not involve In conjunction with a freezing order, the court The freezing order served on you will A fiduciary duty is owed where one person has after the order is granted. In complex cases, that they can manage such cases in the Proceedings limiting the defendants’ ability to mislead the accused of the fraud – is not. Such an any part of the property which the order assets. claimant to recover damages for harm fiduciary duty being breached. may also order that you: usually contain a “penal notice” warning A Briefing Guide to Freezing Orders undertaken to act for, or on behalf of, another the court should allow sufficient time for the most effective and proactive way possible. As it is not unusual for high net worth court by fabricating their defence. As such, approach, known as a without notice Such an order can be used to: covers or the profits of that property, for caused by the acts of a number of people. you that failure to comply with the terms Tort of Deceit in circumstances which give rise to a defendant to consider their position, seek legal We are experts in both obtaining and If somebody believes they have had fraud individuals to move their wealth between they can be a very useful tool for evidence application, involves secrecy in order to example the rent paid on a house. The Different Types Of Fraud Claims Offshore Trusts and • Sign a document authorising your bank(s) or of the order can lead to contempt of court Freezing orders are put in place so that relationship of trust and confidence. Duties are advice and piece together the arguments they challenging orders and have the proven perpetrated against them they can report Tort of deceit can be described as countries, courts can impose worldwide gathering. prevent prejudicing the claim to recover • Identify wrongdoers. owner of the property that is subject to To be liable for unlawful means Cross-Border Trust Disputes other third parties to disclose to the proceedings. Contempt of court is Civil Fraud: Bringing defendants cannot diminish the value of the owed where the circumstances give rise to a wish to rely on to challenge the order. ability to give a client a rapid, informed the matter to the police and have it treated fraudulent misrepresentation. It is the freezing orders. A court will be prepared any assets. The respondent will not be • Identify the full nature of the wrongdoing. receivership will not be entitled to any While tort of deceit is the main and most conspiracy, a defendant must have claimant information regarding your assets punishable by a fine, up to two years’ assets or dissipate them before any legitimate expectation that one person will not response; no matter how complicated the as a criminal matter or they can use civil law closest that the civil law has to the criminal to impose a freezing order on a defendant Search Orders aware of an application being made and • Trace assets and proprietary claims benefit from it while the receivership is common type of fraud claim, there are others. intended to cause damage to the Trust litigation can be complex, • Hand over your passport to the claimant’s imprisonment or seizure of assets. It is judgement is made. use his position in a way that is adverse to the It is vital that the subject of such an order acts A Claim Or Defending scenario, how sophisticated the alleged to seek to recover their losses. law concept of fraud. whether they are located here or so the risk of any assets being dissipated is • Obtain the source of information contained ongoing. And they all require a careful, considered legal claimant. For a claimant to prove unlawful multinational, long-running and involve solicitors, preventing you from leaving the another reminder of the importance of quickly if they intend to challenge it or seek a A search order can be viewed as one of the means conspiracy they must be able to interest of another. large sums of money and substantial country fraud or how high the value of the assets at A freezing order is an order granted by the overseas. But while the test is no different reduced. But with such applications, the in a publication approach. Here we list some of the more ensuring that your response to an order is variation of its terms; such as the amount it most draconian forms of injunction known to show an agreement between the amounts of property. The administration • Are cross-examined about your assets. This A Claim stake. There is no obligation to report fraud to the For a tort of deceit claim to succeed, you High Court to freeze the assets so that the to applying for a domestic freezing order, respondent has to able to show good • Enable you to plead your case Any receiver will be constrained by the commonplace examples. the correct one. allows to be allocated for living expenses. It is English law. It requires the respondent to allow defendant and others, that the Examples would include: of trusts, disputes between beneficiaries, is only granted in exceptional cases where police. And if you do, it may not be the most must be able to establish: person in possession of them can do nothing anyone seeking a worldwide freezing reasons for not giving the respondent any terms of a court order so there needs to also important for the defendant to ensure Any civil fraud case involves taking the most appropriate course of action. order – which can be referred to as a the applicant’s solicitor and/or others to enter notice. In fraud proceedings, these orders are often be careful consideration when proposing defendant’s intention was to injure, that alleged failure to follow trust rules, you are suspected of having disclosed with them until the matter is resolved. Assets • When a director takes an office in which he that his stance is not viewed as either appropriate steps at the right time. Our • The defendant made a representation Mareva Injunction, after a 1975 case - the premises owned or controlled by the obtained against banks for disclosure of the terms of such an order to a High Court unlawful acts were carried out as a result secondary liability claims and removal of incorrect or incomplete details regarding that can be frozen include bank accounts, is responsible for managing the business consenting to the continuation of the which was false must be able to persuade the court that person accused of fraud, in order to search account details relating to the person who is trustees can all lead to legal disputes. your assets. and controlling the assets of a company

injunction or giving any undertakings that Disclosure Orders could prejudice his ability to challenge the continuation of the injunction. Defendants are required to provide information that goes above and beyond Application to discharge the when they have a disclosure order served on order them. They must take all reasonable steps to ensure all their answers are correct and they There are grounds for resisting or must go into all the detail that is relevant to the discharging the injunction. circumstances that have prompted the order. A failure to do this can lead to contempt of These include: court proceedings. In such situations, the response to such an order must be managed • The allegation made against you is not by legal representatives who are familiar with an arguable case; either regarding all the available options and experts in knowing evidence or as a matter of law how the subject of a disclosure order should • The risk of dissipation has not been conduct themselves. established properly • There is no risk of dissipation • It is not just to continue this injunction • The applicant has not disclosed all relevant facts to the court or has misrepresented the situation • The court has no jurisdiction

Putting it simply, the grounds for discharging a freezing injunction are that the claimant does not meet the criteria for having obtained it or that they have not complied with their duty of full and frank disclosure, as they failed to tell the court some material fact at the without notice hearing – a fact which would have led the judge to decline to make the order. private and public shares, tangible factors exist which make it necessary to and remove any documents and material facing the accusations. They are usually judge. Receivership orders are generally Cross-border Fraud of that agreement as a means of injuring the • When a person acts as a trustee to hold These may not necessarily have their origins in • Deliver up assets to the claimant’s This is because if you do: • The defendant knew that the representation Other Orders Available to Challenging Orders property (such as vehicles and land) and impose an order that covers assets outside of described by the order. coupled with a “gagging order” to prevent applied for after a freezing order is in place. claimant and that the claimant suffered a loss. property which belongs to the a fraud claim but fraud allegations may form solicitors or make a payment into court Civil Fraud: Bringing A Claim Or was false Those Seeking to Recover intangible property (such as goodwill in a the UK. the bank informing their customer that This is because a receivership order is applied This can lead to investigations being beneficiary part of any legal action. • You lose control. The police have their • The defendant intended that the Assets Just as anyone is entitled to bring a civil fraud business or intellectual property rights). The primary purpose of a search order is the account information has been for on the grounds that a freezing order - conducted in a number of countries Examples of unlawful means conspiracy • When an agent agrees to act on behalf The court may also order that a receiver Defending A Claim own methods of securing evidence representation would induce the claimant to claim, an individual who is named as the The court will look into the location and nature the preserving of evidence that is relevant disclosed. The gagging order will be for a which freezes assets but still leaves them in the and/or proceedings being brought in include: of a principal and assumes power to be appointed over your assets. This is which include arrests, raids and act Chabra Orders Sham Trusts alleged perpetrator of a fraud has every right A freezing order is a powerful form of of the assets in question, the level of disruption to a claimant’s case. A search order is set period of time to allow analysis of the hands of the respondent - provides more than one jurisdiction. Knowledge alter his legal position likely to happen if the court feels it is to contest the allegations and the civil law interviews under caution. You can have • The claimant suffered a loss • A director conspiring with a company of relief, as it restrains a defendant from caused by freezing them and at the effect on generally used to prevent a defendant Anyone involved in fraud will usually make use information received, although it can be inadequate protection; hence the need for a and experience of the law in a variety of • Brokers who introduce agents to their A trust will be deemed a sham when the unable to trust you to deal with the assets means by which the claim is pursued. One no influence over those. Additionally, which he is a director. Civil fraud is a complex area of the law that can be dealing with the asset. Failure to comply any third parties and any litigation; including from destroying or hiding documentary or of third parties – such as a marital partner or extended on application. receiver to be appointed to take control over countries will be essential in such cases. clients requirements for the creating of a valid trust without breaching a freezing order. important way in which this can be done is to the pace at which assets are secured (if Bringing A Civil Fraud Claim • A shareholder conspiring with a company in at all) is very slow in these situations. with the freezing order will result in any related litigation in other countries. other evidence they possess which might associate - to hold assets for them, as this the asset. have not been satisfied. A sham trust must challenge the order that the person who is perplexing to those who find themselves involved in it. Unjust Enrichment which he owns shares. A breach of fiduciary duty can be • There can be situations where a civil In order to pursue fraud-related claims, it is separate contempt of court proceedings support the claimant’s case. helps disguise their true ownership. A Chabra Receivership Orders also involve some form of deception. If this is Such potential obligations can seem bringing the claim has obtained or is seeking to • A parent company conspiring with its characterised as dishonest if one person That is why it is important that such matters are case against the defendant will not be important to obtain strategic advice. Such where the court has the power to impose Disclosure Orders Order is an interim relief that can be used in Receivers can be appointed for assets such as the case, the so-called trust is a nullity, excessive and unnecessary. This is obtain. The essence of unjust enrichment relates subsidiary deliberately acts knowing that the course able to proceed until the criminal advice can enable the tracing and, where a sentence of imprisonment. A search order only tends to be made circumstances where third parties hold the A receiver may be appointed at the rental properties, dividends from shares meaning it is legally void. If this is the case and precisely why you need to appoint a legal handled by solicitors who are well versed in all aspects to wrongdoing; when the defendant is • Inducing a breach of contract. of action is contrary to the other party’s proceedings are over. possible, freezing of stolen assets. In large-scale fraud claims, disclosure when there is no alternative way of defendant’s assets that are the subject of the pre-judgement stage in an effort to (where they may have full power to exercise the assets have been transferred to a trustee, team with the appropriate expertise to Freezing Orders In order to make a successful application applications are quite often very important. ensuring that justice is done for the fraud accusations. preserve assets until a judgement has the rights of the shareholder) and assets that enriched at the expense of the claimant. interests or is recklessly indifferent to that they will be held in a resulting trust for the represent you. It can take the most of commercial civil fraud and proven experts in • The police do not always have the The advantage to bringing a claim for for a freezing order you will have to show applicant. For this reason, it is important been made in proceedings. This is a tool belong to or are controlled by the respondent An example would be if a person gives possibility. settlor – the original possessor of the assets – strategic, experienced legal resources to bring a fraud investigation There are a number of tools available to conspiracy is that it enables the claimant to The applicant has a duty to make full and frank assembling a case and responding to all the challenges that there was an underlying cause of This is because they can help establish: that expert legal advice is sought before The third party is not alleged to be liable for the that assists post-judgement for the money to another person to invest in an until the matter has been legally resolved. representatives to persuade a court to to a swift conclusion, so a criminal recover any potential losses. These are known potentially target a wider range of defendants; disclosure to the court when seeking a freezing action (the alleged fraud) and that there is applying for a search order, as the fraud or directly accountable to the claimant. realisation of assets to meet any Defending a receivership order can involve agreed venture but the second person If someone owes a fiduciary duty to drop such conditions. that can be posed by it. investigation could take much longer as interim reliefs. While interim reliefs can be of including many who may not be central order. This is in order to ensure fairness in a real risk of dissipation. If this course of • The current location of the property or likelihood of obtaining one and the The beneficial owner is still considered to be judgement and it is increasingly used by arguing that appointing a receiver is keeps the money for himself instead of another and engages in fraud, it amounts Defending Civil Fraud Claims than civil proceedings. great use in helping to locate and regain assets characters in the fraud but still played a part in circumstances where the respondent is not action is taken, it must be done quickly. proceeds from it possible value of other options need to be the defendant but a Chabra Order enables the claimants in civil fraud proceedings. unnecessary, a step too far, a substantial investing it. If the circumstances are such to a breach of the core obligation of It is likely that you will have to serve an • A criminal prosecution – even a that have been taken fraudulently, it is it being carried out. But any such claim will before the court to put his case. When such an If a civil fraud case goes to court, it will do so thorough, innovative approach ensures the successful one – will not guarantee that Failure to do so could lead to criticism • The identity of potential defendants and the assessed. claimant to freeze assets that are in the intrusion into the respondent’s affairs and / or that it is unjust for the defendant to retain loyalty. Fiduciary duties provide the basis Receiving an Order affidavit within two days, disclosing all of important that they are employed swiftly. need to be thought out and planned carefully injunction is made “without notice” to another after a huge amount of preparatory work right strategy and tactics are employed so the person who reported the fraud will from the court for delaying and may lead basis for claims against them possession of the third party. It involves a receiver taking control or likely to have a significant impact on the that enrichment, then the law of unjust for a course of action that is flexible in its your assets valued over £1,000. Once Otherwise there is the risk that the assets before being pursued. party (where the subject of the order being • The value, location and nature of the assets enrichment will provide a way for the application to a wide range of factual When an order is made against you, it is has been carried out. Such work may that the decisions that are acted on are the regain their assets. could be dissipated – spent, squandered or the court to believe that there is no risk of Without Notice Applications exercising powers of ownership over the business or assets that are the subject of the again, the right legal expertise can be vital applied for is not present) those applying for against which any judgement against the claimant to seek its return. circumstances. As a result, establishing a important that you take legal advice involve investigating aspects of a case that right ones. otherwise placed out of reach of the legitimate dissipation. Any application must show Norwich Pharmacal Orders relevant assets, depending on the terms intended receivership. The chances of in compiling this or in seeking a later the order must provide a return date at which defendant must be enforced Breach of Fiduciary Duty breach of fiduciary duty makes it possible immediately. The order will set out a number involve a number of countries and The standard of proof in civil law cases is owner – if action is not taken quickly enough. that you have a “good and arguable claim” When an application is made for a freezing 29-052 of the order. A receivership can be made convincing a court that a receiver is not deadline for completing it. Strict the other parties can be present. This is so the jurisdictions. On this page, we cover the major issues that the “balance of probabilities”. against the defendant – which is why you • Critical facts necessary to make out the order, disclosure order or search order, it in respect of foreign assets and over necessary may depend on the ability to offer Unlawful Means Conspiracy to impose a range of remedies against the of directions that you will have to comply with. compliance with a freezing order is The risk of dissipation, therefore, has to be There are a number of fraud claims that can case can be reviewed by the court with the relate to civil fraud cases and outline how need the most skilled lawyers in this area claimant’s case, which fraudulent is made ex-parte. This means that the The purpose behind a Norwich Pharmacal foreign debts. an alternative legal approach. This may include person who has breached that duty – If you do not, you will be in breach of the order; required and you should take all possible assessed immediately. be brought regarding the concept of a breach benefit of submissions from the defendant. Rahman Ravelli’s specialist civil fraud team best to respond to certain situations. This is a lower threshold than in criminal of law. defendants might otherwise seek to deny claimant – who is claiming to have been Order is to enable the victim of alleged offering certain undertakings to the court or A claim for fraud against more than one remedies that do not just involve which could lead to contempt proceedings. steps to ensure that you do comply with it. of fiduciary duty. • The facts from a disclosure order at an early defendant will most likely include a claim compensation and that are not normally members have the legal expertise and the proceedings, where an accusation must Interim reliefs include: the victim of the fraud - is in attendance at wrongdoing to obtain information that will Receivership operates as an injunction, involving third party independent experts to The return date is usually a couple of weeks network of international contacts to ensure Civil Proceedings or Criminal be proved “beyond reasonable doubt” World Wide Freezing Orders stage in proceedings can be invaluable in court but the respondent – the person enable them to sue the alleged wrongdoer. restraining the respondent from receiving manage certain aspects of the business or for conspiracy. A conspiracy claim allows a available in a case that does not involve In conjunction with a freezing order, the court The freezing order served on you will A fiduciary duty is owed where one person has after the order is granted. In complex cases, that they can manage such cases in the Proceedings limiting the defendants’ ability to mislead the accused of the fraud – is not. Such an any part of the property which the order assets. claimant to recover damages for harm fiduciary duty being breached. may also order that you: usually contain a “penal notice” warning Freezing Orders undertaken to act for, or on behalf of, another the court should allow sufficient time for the most effective and proactive way possible. As it is not unusual for high net worth court by fabricating their defence. As such, approach, known as a without notice Such an order can be used to: covers or the profits of that property, for caused by the acts of a number of people. you that failure to comply with the terms Tort of Deceit in circumstances which give rise to a defendant to consider their position, seek legal We are experts in both obtaining and If somebody believes they have had fraud individuals to move their wealth between they can be a very useful tool for evidence application, involves secrecy in order to example the rent paid on a house. The Different Types Of Fraud Claims Offshore Trusts and • Sign a document authorising your bank(s) or of the order can lead to contempt of court Freezing orders are put in place so that relationship of trust and confidence. Duties are advice and piece together the arguments they challenging orders and have the proven perpetrated against them they can report Tort of deceit can be described as countries, courts can impose worldwide gathering. prevent prejudicing the claim to recover • Identify wrongdoers. owner of the property that is subject to To be liable for unlawful means Cross-Border Trust Disputes other third parties to disclose to the proceedings. Contempt of court is defendants cannot diminish the value of the owed where the circumstances give rise to a wish to rely on to challenge the order. ability to give a client a rapid, informed the matter to the police and have it treated fraudulent misrepresentation. It is the freezing orders. A court will be prepared any assets. The respondent will not be • Identify the full nature of the wrongdoing. receivership will not be entitled to any While tort of deceit is the main and most conspiracy, a defendant must have claimant information regarding your assets punishable by a fine, up to two years’ assets or dissipate them before any legitimate expectation that one person will not response; no matter how complicated the as a criminal matter or they can use civil law closest that the civil law has to the criminal to impose a freezing order on a defendant Search Orders aware of an application being made and • Trace assets and proprietary claims benefit from it while the receivership is common type of fraud claim, there are others. intended to cause damage to the Trust litigation can be complex, • Hand over your passport to the claimant’s imprisonment or seizure of assets. It is judgement is made. use his position in a way that is adverse to the It is vital that the subject of such an order acts scenario, how sophisticated the alleged to seek to recover their losses. law concept of fraud. whether they are located here or so the risk of any assets being dissipated is • Obtain the source of information contained ongoing. And they all require a careful, considered legal claimant. For a claimant to prove unlawful multinational, long-running and involve solicitors, preventing you from leaving the another reminder of the importance of quickly if they intend to challenge it or seek a A search order can be viewed as one of the means conspiracy they must be able to interest of another. large sums of money and substantial country fraud or how high the value of the assets at A freezing order is an order granted by the overseas. But while the test is no different reduced. But with such applications, the in a publication approach. Here we list some of the more ensuring that your response to an order is variation of its terms; such as the amount it most draconian forms of injunction known to show an agreement between the amounts of property. The administration • Are cross-examined about your assets. This stake. There is no obligation to report fraud to the For a tort of deceit claim to succeed, you High Court to freeze the assets so that the to applying for a domestic freezing order, respondent has to able to show good • Enable you to plead your case Any receiver will be constrained by the commonplace examples. the correct one. allows to be allocated for living expenses. It is English law. It requires the respondent to allow defendant and others, that the Examples would include: of trusts, disputes between beneficiaries, is only granted in exceptional cases where police. And if you do, it may not be the most must be able to establish: person in possession of them can do nothing anyone seeking a worldwide freezing reasons for not giving the respondent any terms of a court order so there needs to also important for the defendant to ensure Any civil fraud case involves taking the most appropriate course of action. order – which can be referred to as a the applicant’s solicitor and/or others to enter notice. In fraud proceedings, these orders are often be careful consideration when proposing defendant’s intention was to injure, that alleged failure to follow trust rules, you are suspected of having disclosed with them until the matter is resolved. Assets • When a director takes an office in which he that his stance is not viewed as either appropriate steps at the right time. Our • The defendant made a representation Mareva Injunction, after a 1975 case - the premises owned or controlled by the obtained against banks for disclosure of the terms of such an order to a High Court unlawful acts were carried out as a result secondary liability claims and removal of incorrect or incomplete details regarding that can be frozen include bank accounts, is responsible for managing the business consenting to the continuation of the which was false must be able to persuade the court that person accused of fraud, in order to search account details relating to the person who is trustees can all lead to legal disputes. your assets. and controlling the assets of a company

A Brieﬁng Guide to Civil Fraud: Bringing A Claim Or Defending A Claim

Putting it simply, the grounds for discharging a freezing injunction are that the claimant does not meet the criteria for having obtained it or that they have not complied with their duty of full and frank disclosure, as they failed to tell the court some material fact at the without notice hearing – a fact which would have led the judge to decline to make the order. private and public shares, tangible factors exist which make it necessary to and remove any documents and material facing the accusations. They are usually judge. Receivership orders are generally Cross-border Fraud of that agreement as a means of injuring the • When a person acts as a trustee to hold These may not necessarily have their origins in • Deliver up assets to the claimant’s This is because if you do: • The defendant knew that the representation Other Orders Available to Challenging Orders property (such as vehicles and land) and impose an order that covers assets outside of described by the order. coupled with a “gagging order” to prevent applied for after a freezing order is in place. claimant and that the claimant suffered a loss. property which belongs to the a fraud claim but fraud allegations may form solicitors or make a payment into court was false Those Seeking to Recover intangible property (such as goodwill in a the UK. the bank informing their customer that This is because a receivership order is applied This can lead to investigations being beneficiary part of any legal action. • You lose control. The police have their • The defendant intended that the Assets Just as anyone is entitled to bring a civil fraud business or intellectual property rights). The primary purpose of a search order is the account information has been for on the grounds that a freezing order - conducted in a number of countries Examples of unlawful means conspiracy • When an agent agrees to act on behalf The court may also order that a receiver own methods of securing evidence representation would induce the claimant to claim, an individual who is named as the The court will look into the location and nature the preserving of evidence that is relevant disclosed. The gagging order will be for a which freezes assets but still leaves them in the and/or proceedings being brought in include: of a principal and assumes power to be appointed over your assets. This is which include arrests, raids and act Chabra Orders Sham Trusts alleged perpetrator of a fraud has every right A freezing order is a powerful form of of the assets in question, the level of disruption to a claimant’s case. A search order is set period of time to allow analysis of the hands of the respondent - provides more than one jurisdiction. Knowledge alter his legal position likely to happen if the court feels it is to contest the allegations and the civil law interviews under caution. You can have • The claimant suffered a loss • A director conspiring with a company of relief, as it restrains a defendant from caused by freezing them and at the effect on generally used to prevent a defendant Anyone involved in fraud will usually make use information received, although it can be inadequate protection; hence the need for a and experience of the law in a variety of • Brokers who introduce agents to their A trust will be deemed a sham when the unable to trust you to deal with the assets means by which the claim is pursued. One no influence over those. Additionally, which he is a director. dealing with the asset. Failure to comply any third parties and any litigation; including from destroying or hiding documentary or of third parties – such as a marital partner or extended on application. receiver to be appointed to take control over countries will be essential in such cases. clients requirements for the creating of a valid trust without breaching a freezing order. important way in which this can be done is to the pace at which assets are secured (if Bringing A Civil Fraud Claim • A shareholder conspiring with a company in at all) is very slow in these situations. with the freezing order will result in any related litigation in other countries. other evidence they possess which might associate - to hold assets for them, as this the asset. have not been satisfied. A sham trust must challenge the order that the person who is Unjust Enrichment which he owns shares. A breach of fiduciary duty can be • There can be situations where a civil In order to pursue fraud-related claims, it is separate contempt of court proceedings support the claimant’s case. helps disguise their true ownership. A Chabra Receivership Orders also involve some form of deception. If this is Such potential obligations can seem bringing the claim has obtained or is seeking to • A parent company conspiring with its characterised as dishonest if one person case against the defendant will not be important to obtain strategic advice. Such where the court has the power to impose Disclosure Orders Order is an interim relief that can be used in Receivers can be appointed for assets such as the case, the so-called trust is a nullity, excessive and unnecessary. This is obtain. The essence of unjust enrichment relates subsidiary deliberately acts knowing that the course able to proceed until the criminal advice can enable the tracing and, where a sentence of imprisonment. A search order only tends to be made circumstances where third parties hold the A receiver may be appointed at the rental properties, dividends from shares meaning it is legally void. If this is the case and precisely why you need to appoint a legal to wrongdoing; when the defendant is • Inducing a breach of contract. of action is contrary to the other party’s proceedings are over. possible, freezing of stolen assets. In large-scale fraud claims, disclosure when there is no alternative way of defendant’s assets that are the subject of the pre-judgement stage in an effort to (where they may have full power to exercise the assets have been transferred to a trustee, team with the appropriate expertise to Freezing Orders In order to make a successful application applications are quite often very important. ensuring that justice is done for the fraud accusations. preserve assets until a judgement has the rights of the shareholder) and assets that enriched at the expense of the claimant. interests or is recklessly indifferent to that they will be held in a resulting trust for the represent you. It can take the most • The police do not always have the The advantage to bringing a claim for for a freezing order you will have to show applicant. For this reason, it is important been made in proceedings. This is a tool belong to or are controlled by the respondent An example would be if a person gives possibility. settlor – the original possessor of the assets – strategic, experienced legal resources to bring a fraud investigation There are a number of tools available to conspiracy is that it enables the claimant to The applicant has a duty to make full and frank that there was an underlying cause of This is because they can help establish: that expert legal advice is sought before The third party is not alleged to be liable for the that assists post-judgement for the money to another person to invest in an until the matter has been legally resolved. representatives to persuade a court to to a swift conclusion, so a criminal recover any potential losses. These are known potentially target a wider range of defendants; disclosure to the court when seeking a freezing action (the alleged fraud) and that there is applying for a search order, as the fraud or directly accountable to the claimant. realisation of assets to meet any Defending a receivership order can involve agreed venture but the second person If someone owes a fiduciary duty to drop such conditions. investigation could take much longer as interim reliefs. While interim reliefs can be of including many who may not be central order. This is in order to ensure fairness in a real risk of dissipation. If this course of • The current location of the property or likelihood of obtaining one and the The beneficial owner is still considered to be judgement and it is increasingly used by arguing that appointing a receiver is keeps the money for himself instead of another and engages in fraud, it amounts Defending Civil Fraud Claims than civil proceedings. great use in helping to locate and regain assets characters in the fraud but still played a part in circumstances where the respondent is not action is taken, it must be done quickly. proceeds from it possible value of other options need to be the defendant but a Chabra Order enables the claimants in civil fraud proceedings. unnecessary, a step too far, a substantial investing it. If the circumstances are such to a breach of the core obligation of It is likely that you will have to serve an • A criminal prosecution – even a that have been taken fraudulently, it is it being carried out. But any such claim will before the court to put his case. When such an If a civil fraud case goes to court, it will do so thorough, innovative approach ensures the successful one – will not guarantee that Failure to do so could lead to criticism • The identity of potential defendants and the assessed. claimant to freeze assets that are in the intrusion into the respondent’s affairs and / or that it is unjust for the defendant to retain loyalty. Fiduciary duties provide the basis Receiving an Order affidavit within two days, disclosing all of important that they are employed swiftly. need to be thought out and planned carefully injunction is made “without notice” to another after a huge amount of preparatory work right strategy and tactics are employed so the person who reported the fraud will from the court for delaying and may lead basis for claims against them possession of the third party. It involves a receiver taking control or likely to have a significant impact on the that enrichment, then the law of unjust for a course of action that is flexible in its your assets valued over £1,000. Once Otherwise there is the risk that the assets before being pursued. party (where the subject of the order being • The value, location and nature of the assets enrichment will provide a way for the application to a wide range of factual When an order is made against you, it is has been carried out. Such work may that the decisions that are acted on are the regain their assets. could be dissipated – spent, squandered or the court to believe that there is no risk of Without Notice Applications exercising powers of ownership over the business or assets that are the subject of the again, the right legal expertise can be vital applied for is not present) those applying for against which any judgement against the claimant to seek its return. circumstances. As a result, establishing a important that you take legal advice involve investigating aspects of a case that right ones. otherwise placed out of reach of the legitimate dissipation. Any application must show Norwich Pharmacal Orders relevant assets, depending on the terms intended receivership. The chances of in compiling this or in seeking a later the order must provide a return date at which defendant must be enforced Breach of Fiduciary Duty breach of fiduciary duty makes it possible immediately. The order will set out a number involve a number of countries and The standard of proof in civil law cases is owner – if action is not taken quickly enough. that you have a “good and arguable claim” When an application is made for a freezing 29-052 of the order. A receivership can be made convincing a court that a receiver is not deadline for completing it. Strict the other parties can be present. This is so the jurisdictions. On this page, we cover the major issues that the “balance of probabilities”. against the defendant – which is why you • Critical facts necessary to make out the order, disclosure order or search order, it in respect of foreign assets and over necessary may depend on the ability to offer Unlawful Means Conspiracy to impose a range of remedies against the of directions that you will have to comply with. compliance with a freezing order is The risk of dissipation, therefore, has to be There are a number of fraud claims that can case can be reviewed by the court with the relate to civil fraud cases and outline how need the most skilled lawyers in this area claimant’s case, which fraudulent is made ex-parte. This means that the The purpose behind a Norwich Pharmacal foreign debts. an alternative legal approach. This may include person who has breached that duty – If you do not, you will be in breach of the order; required and you should take all possible assessed immediately. be brought regarding the concept of a breach benefit of submissions from the defendant. Rahman Ravelli’s specialist civil fraud team best to respond to certain situations. This is a lower threshold than in criminal of law. defendants might otherwise seek to deny claimant – who is claiming to have been Order is to enable the victim of alleged offering certain undertakings to the court or A claim for fraud against more than one remedies that do not just involve which could lead to contempt proceedings. steps to ensure that you do comply with it. of fiduciary duty. • The facts from a disclosure order at an early defendant will most likely include a claim compensation and that are not normally members have the legal expertise and the proceedings, where an accusation must Interim reliefs include: the victim of the fraud - is in attendance at wrongdoing to obtain information that will Receivership operates as an injunction, involving third party independent experts to The return date is usually a couple of weeks network of international contacts to ensure Civil Proceedings or Criminal be proved “beyond reasonable doubt” World Wide Freezing Orders stage in proceedings can be invaluable in court but the respondent – the person enable them to sue the alleged wrongdoer. restraining the respondent from receiving manage certain aspects of the business or for conspiracy. A conspiracy claim allows a available in a case that does not involve In conjunction with a freezing order, the court The freezing order served on you will A fiduciary duty is owed where one person has after the order is granted. In complex cases, that they can manage such cases in the Proceedings limiting the defendants’ ability to mislead the accused of the fraud – is not. Such an any part of the property which the order assets. claimant to recover damages for harm fiduciary duty being breached. may also order that you: usually contain a “penal notice” warning Freezing Orders undertaken to act for, or on behalf of, another the court should allow sufficient time for the most effective and proactive way possible. As it is not unusual for high net worth court by fabricating their defence. As such, approach, known as a without notice Such an order can be used to: covers or the profits of that property, for caused by the acts of a number of people. you that failure to comply with the terms Tort of Deceit in circumstances which give rise to a defendant to consider their position, seek legal We are experts in both obtaining and If somebody believes they have had fraud individuals to move their wealth between they can be a very useful tool for evidence application, involves secrecy in order to example the rent paid on a house. The Different Types Of Fraud Claims Offshore Trusts and • Sign a document authorising your bank(s) or of the order can lead to contempt of court Freezing orders are put in place so that relationship of trust and confidence. Duties are advice and piece together the arguments they challenging orders and have the proven perpetrated against them they can report Tort of deceit can be described as countries, courts can impose worldwide gathering. prevent prejudicing the claim to recover • Identify wrongdoers. owner of the property that is subject to To be liable for unlawful means Cross-Border Trust Disputes other third parties to disclose to the proceedings. Contempt of court is defendants cannot diminish the value of the owed where the circumstances give rise to a wish to rely on to challenge the order. ability to give a client a rapid, informed the matter to the police and have it treated fraudulent misrepresentation. It is the freezing orders. A court will be prepared any assets. The respondent will not be • Identify the full nature of the wrongdoing. receivership will not be entitled to any While tort of deceit is the main and most conspiracy, a defendant must have claimant information regarding your assets punishable by a fine, up to two years’ assets or dissipate them before any legitimate expectation that one person will not response; no matter how complicated the as a criminal matter or they can use civil law closest that the civil law has to the criminal to impose a freezing order on a defendant Search Orders aware of an application being made and • Trace assets and proprietary claims benefit from it while the receivership is common type of fraud claim, there are others. intended to cause damage to the Trust litigation can be complex, • Hand over your passport to the claimant’s imprisonment or seizure of assets. It is judgement is made. use his position in a way that is adverse to the It is vital that the subject of such an order acts scenario, how sophisticated the alleged to seek to recover their losses. law concept of fraud. whether they are located here or so the risk of any assets being dissipated is • Obtain the source of information contained ongoing. And they all require a careful, considered legal claimant. For a claimant to prove unlawful multinational, long-running and involve solicitors, preventing you from leaving the another reminder of the importance of quickly if they intend to challenge it or seek a A search order can be viewed as one of the means conspiracy they must be able to interest of another. large sums of money and substantial country fraud or how high the value of the assets at A freezing order is an order granted by the overseas. But while the test is no different reduced. But with such applications, the in a publication approach. Here we list some of the more ensuring that your response to an order is variation of its terms; such as the amount it most draconian forms of injunction known to show an agreement between the amounts of property. The administration • Are cross-examined about your assets. This stake. There is no obligation to report fraud to the For a tort of deceit claim to succeed, you High Court to freeze the assets so that the to applying for a domestic freezing order, respondent has to able to show good • Enable you to plead your case Any receiver will be constrained by the commonplace examples. the correct one. allows to be allocated for living expenses. It is English law. It requires the respondent to allow defendant and others, that the Examples would include: of trusts, disputes between beneficiaries, is only granted in exceptional cases where police. And if you do, it may not be the most must be able to establish: person in possession of them can do nothing anyone seeking a worldwide freezing reasons for not giving the respondent any terms of a court order so there needs to also important for the defendant to ensure Any civil fraud case involves taking the most appropriate course of action. order – which can be referred to as a the applicant’s solicitor and/or others to enter notice. In fraud proceedings, these orders are often be careful consideration when proposing defendant’s intention was to injure, that alleged failure to follow trust rules, you are suspected of having disclosed with them until the matter is resolved. Assets • When a director takes an office in which he that his stance is not viewed as either appropriate steps at the right time. Our • The defendant made a representation Mareva Injunction, after a 1975 case - the premises owned or controlled by the obtained against banks for disclosure of the terms of such an order to a High Court unlawful acts were carried out as a result secondary liability claims and removal of incorrect or incomplete details regarding that can be frozen include bank accounts, is responsible for managing the business consenting to the continuation of the which was false must be able to persuade the court that person accused of fraud, in order to search account details relating to the person who is trustees can all lead to legal disputes. your assets. and controlling the assets of a company