The Serious Fraud Office (SFO) released their Annual Report and Accounts for the year ended 31st March 2019 on 6th August 2019.
The report contains information about the financial running costs of the organisation as well as operational performance of the SFO.
Financial outturn
Operating expenditure for the year amounted to £58.584 million (2017/18: £56.614 million). The running costs were offset by income of £2.378 million received in respect of prosecution costs and settlements awarded to the SFO under the Asset Recovery Incentivisation Scheme (ARIS).
Operational metrics
New investigations:
During 2018/19, the SFO opened 11 new criminal investigations, five of which are now in the public domain. These include allegations of corruption related to Ultra Electronic Holdings’ conduct of business in Algeria, false accounting at Patisserie Valerie and investment fraud conducted by property developers in Liverpool and Manchester. It also commenced enquiries into the behaviour of individuals associated with London Capital & Finance and of biodiesel fuel trading irregularities at Greenergy.
Ongoing investigations:
Eight defendants were charged, whilst 14 investigations were closed without charge. 16 defendants were awaiting trial at the end of the year. Total caseload now stands at around 70 cases. In the 10 prosecutions that reached a conclusion this year, 17 defendants were convicted. This resulted in conviction rates of 53% by defendant and 86% by case. Over the last four years (2015-2019), the SFO conviction rate was 60% by defendant and 79% by case.
One high-profile case which was prosecuted and concluded during the year was the investigation into Solar Energy Savings Limited, a company which created a £17m fraudulent scheme to sell and install solar energy panels. This scheme resulted in 1,500 victims losing between £10,000 and £20,000 each. Six individuals were found guilty of conspiracy to defraud by false representation and were sentenced to a total of 30 years and 4 months imprisonment.
Proceeds of crime
The SFO continues to recover the proceeds of crime mainly using the powers in the Proceeds of Crime Act 2002 (POCA).
A number of amendments to this Act (which were enacted by the Criminal Finances Act 2017) came into force on 31 January 2018 providing the SFO with additional tools to help combat illicit finance. This included Unexplained Wealth Orders, Account Freezing and Forfeiture Orders.
According to the SFO’s Annual Report, 11 confiscation orders with a combined value of almost £4.1m were obtained during the 2018/19 period. They also recovered over £3.9m by enforcing confiscation orders previously obtained and secured the activation of one default term of imprisonment for non-payment.
In addition, the SFO also obtained:
- one Civil Recovery Order of £4.4m
- one Account Forfeiture Order of £1.5m (first ever)
- 11 orders that restrained or froze assets
- seven cash seizures with £99,870 forfeited
- seven cash detentions totalling £217,198.
About the Serious Fraud Office
The SFO was established by the Criminal Justice Act (CJA) 1987 and commenced operations in 1988. It is part of the UK criminal justice system covering England, Wales and Northern Ireland, but not Scotland, the Isle of Man or the Channel Islands.
The SFO’s purpose is to investigate and, where appropriate, prosecute cases of serious financial crime or complex investment fraud, bribery and corruption.
In addition, the specialist Proceeds of Crime and International Assistance Division investigates and prosecutes cases where money laundering is alleged to have taken place.
The SFO also recovers the proceeds of those crimes it investigates and assists overseas jurisdictions in their investigations into serious or complex fraud, bribery and corruption. Assistance can include confiscating assets in the UK and issuing freezing orders.
To learn more about the SFO and other UK enforcement agencies dealing with financial crime, please click here.
