Business Crime and Fraud

Published on 21 Sep 2010 under category: article

Published by Corporate International September 2010

Cubism Law is a London City firm specialising in corporate and commercial services. Dan Hyde, a consultant at the firm, believes this is essential that there is a swift and targeted response when corporate fraud has taken place.

He commented: ‘We work closely with international investigators to trace appropriate funds and assets that might be part of a recovery. The obtaining of freezing orders can, in appropriate circumstances, be an effective way of preserving assets and avoiding their dissipation. It is additionally a disclosure tool in that it can compel (subject to very limited exceptions0 disclosure of bank accounts, property and other assets held.”
According to Mr Hyde, the prosecution of business crime is fragmented, and of late, politicised.
He commented: “The future of the FSA is uncertain with the chancellor (George Osbourne) intent on handing its macro-prudential regulation to the Bank of England, its micro-prudential, company regulation to a new Consumer Protection and Market Agency and white collar fraud to a new “super agency” likely titled the Serious Economic Crime Agency.
Unfortunately funding and competence question marks remain as to whether this would succeed; our view is that it is premature.
Cubism Law assists firms with both internal and external fraud, though Mr Hyde notes that the firm tends to receive more instructions in relation to external fraud.
He added: “perhaps this is due to firms being reticent to approach us where their internal systems have failed and the fraud is both in house and against the company.”
Cubism Law deals with all aspects of business crime, including prosecuting and defending in both civil and criminal arenas. The firm has formed associations with Byfield Consultancy (UK) and infinite PR (US) to offer a highly specialised service that combines reputation protection and legal defence. This product, branded as “PressLegal”, allows a client to obtain coordinated, top level PR and legal assistance in the UK and US from single instruction.
Mr Hyde states: “this ensures that, where necessary, the media aspect of the case is handled to best protect the client whilst the legal aspect of the case develops. In instances where the clients reputation is at risk through press and other media coverage (insider dealing, bribery, fraud etc.) it is imperative that the legal advice and PR advice are in tandem and aimed at minimising reputational damage and consequent loss of business”
The economic downturn has led to an increase in fraud and related work, both domestic and international. Mr Hyde notes that certain countries appear to have consistently higher levels of corporate fraud than others.
“This is often to do with a prevailing sub-culture if fraud and the failure to effectively tackle it. The existence of counter fraud legislation is only part of the battle, there needs to be the will to expose and prosecute fraud as state level.”