Fraud: Bribery and Anti-Corruption

‘QEB is a “well-oiled legal machine” populated with a string of redoubtable practitioners. Its members are up to any task...Examples include the cash for honours investigation’
– Chambers and Partners 2009

In the past few years, there has been a significant change in the way in which prosecuting authorities have dealt with allegations of commercial crime. These changes have coincided with an increase in charges laid against people by the SFO and FSA.

Examples of the changes in approach can be found in the use of:

• Encouragement of self-reporting and whistle-blowing

• Offering immunity from prosecution in return for giving evidence

• Civil recovery rather than criminal prosecutions

• Formalised plea bargaining arrangements

• Global settlements to ensure international resolution

A further extension of the prosecutorial armoury can be found in the Bribery Bill 2010 [due Spring 2010] which has been created as the result of considerable international pressure upon the UK to ensure compliance with its obligations to fully tackle bribery and corruption. It will abolish the UK’s entire framework of anti-corruption legislation and replace it with a modern and comprehensive law identifying particular offences of paying (or offering) a bribe, accepting a bribe or bribing a foreign public official with a maximum sentence of 10 years’ imprisonment.

Controversially, the Bill dramatically extends the liability of a corporation and renders a corporate entity guilty if anyone acting on its behalf bribes another anywhere in the world. This has radically overhauled the law on corporate liability and extended the jurisdiction covered by UK courts. Although the offence is of strict liability, there is a defence for the commercial organisation to show it had adequate procedures in place to prevent persons associated with it from committing bribery offences. Guidance will be provided by the SFO, but it is likely that many individuals and companies will fall foul of the law and rely upon prosecutorial discretion as to the form of action taken.

QEB Hollis Whiteman Chambers have considerable experience in advising, representing and presenting cases in this and similar areas of law where issues arise. We are aware of the fact that allegations such as bribery, fraud, processing the proceeds of crime can be damaging to professionals and companies and must be handled sensitively. Much of the work of the advocate is performed outside of the court-room, advising on best compliance, remedial actions, whether to self-report or not, and negotiations with other parties to ensure a satisfactory conclusion. Our members have prosecuted and defended in a number of high-profile corruption cases, including:

• Cash-for-honours enquiry

• Balfour Beatty – use of Civil Recovery Order by SFO

• The landmark case of Neils Tobiasen - the first ever prosecution for overseas bribery

• Millennium Dome corruption case

• Local authority corruption

• Police corruption

• Advising a variety of individual/corporate entities on bribery

• BA [price-fixing]

• Pharmaceuticals [price-fixing]

• Marine Hose [price-fixing]

Members of chambers have also been called upon to comment on the advent of new legislation; we have also provided a contributing author to the Blackstone’s Guide to the Bribery Act 2010, to be published in Spring 2010 by the Oxford University Press.