Special Investigations. Contentious insolvency and fraud investigations

Transcription

1 Special Investigations Contentious insolvency and fraud investigations

2 2 Integrated asset recovery solutions If fraud is suspected, assets have been moved without knowledge, or you are struggling to secure a payment, it can be difficult to know where to start. Our special investigations team focus on contentious insolvency and fraud investigations. We deal with enforcement actions and local and international asset tracing, helping you to identify the next steps and secure the best outcome. We work internationally with legal advisers and forensic experts to identify and recover assets and bring claims against those accountable for fraud, misfeasance, or breach of duty. We also deal with cross-border issues, complex litigation and numerous contentious issues. Our approach includes: partner-led project teams to ensure you receive the highest level of service; dedicated and accessible points of contact to ensure you are kept up to date with progress; What we help you with: formal insolvency appointments utilising powers under the Insolvency Act 1986 to obtain disclosure of information from directors and third parties to identify, secure and recover assets, both in the UK and internationally; joint appointments to assist office holders appointed in insolvency and enforcement proceedings overseas, particularly in the Middle East and offshore centres in the Caribbean; continual discussion, debate and feedback with clients to understand and agree strategy; and stakeholder participation sought throughout project to harness knowledge and experience. where the conduct of directors and management of companies needs to be investigated to bring proceedings for misfeasance, breach of trust and breach of duty claims; provisional liquidations, including continuing to trade businesses whilst carrying out thorough investigations; high-profile bankruptcies involving high net worth individuals with assets often held through complex global structures; and execution of Search and Seizure and Worldwide Freezing Orders.

3 Special investigations

4 4 Proven experience and credentials Our recent contentious insolvency appointments, fraud investigations and other asset recovery experience include: Real estate Project Magpie Appointed Liquidators after winding up order was made in the public interest to a group of companies operated by a suspected rogue landlord. We recovered books and records which had not been disclosed to the official receiver. Analysis of third party information was required in order to rebuild the records of the company. This information was used to establish tracing claims into a large portfolio of properties. The case also involved elements of mortgage fraud. Project Crane Appointed Provisional Liquidators in order to protect the company s principle asset being a major development site and preserve the company s records as tax fraud was suspected. Case required rapid assimilation of complex legal case in order to defend the company s position in court days after appointment. After review of the case, the pleadings were amended and litigation funding obtained. After a series of strongly contested court hearings a settlement was reached on favourable terms leading to a subsequent sale of the site for 10m plus overage. Bankruptcy Project Raven Appointed Trustees in Bankruptcy of a property developer with debts in excess of 250m. The case involved realising investments in real estate and other assets located in the UK, Ireland, Spain, Netherlands, Canada and the US. The Trustees were required to deal with competing claims to these assets from third parties, claiming to have a beneficial interest pursuant to declarations of trust, purportedly made by the debtor prior to the commencement of the bankruptcy proceedings. The trustee s actions have enabled a substantial repayment back to the debtor s creditors. Project Blackbird Appointed Trustee in Bankruptcy to a high profile debtor. The case involved cross border and complex property issues around the family estate. The Trustees investigated and recovered assets held in trusts and offshore corporate entities not originally disclosed. The case also involved significant media interest which was handled by our in house press team.

5 Special investigations brochure Financial Services Awal Bank BSC Appointed to assist the External Administrators of Awal Bank in Bahrain (part of the Saad Group). In addition to running the mothballed operations of the bank, stakeholder liaison with over 70 creditor banks and agreement of claims of some US$2.5 billion, the case has involved the identification and recovery of assets held globally with a book value of over US$5 billion and complex litigation in London, United Arab Emirates, Saudi Arabia, New York, Geneva and the Cayman Islands. Also appointed as Joint Official Liquidators of eight subsidiaries of the Bank which are registered in the Cayman Islands and held substantial investments in hedge fund portfolios. To date realisations of over US$230m. Role has included involvement in a major international fraud trial. Fraudulent Investment Schemes Project Grape Acted as Liquidators of a wine investment scheme which had been wound up by the Court in the public interest. The case involved identification of wine and an application to court to agree the basis upon which the wine recovered could be distributed to investment creditors. We undertook a forensic investigation of the company records and conducted interviews with key parties. This led to personal claims against the directors in relation to monies removed from the company resulting in the recovery of further substantial sums for the creditors. Dobb White & Co Acted as Liquidators of a company following the collapse of a US$200m failed Ponzi scheme. This involved seeking recognition of the liquidation in the Channel Islands and entering into a co-operation agreement with an SEC appointed Receiver in Richmond, Virginia. This enabled a coordinated worldwide recovery programme for the benefit of all creditors. Tax Fraud

6 6 Project Orange Appointed as Liquidators of the company after it was found to be engaged in Missing Trader Intra- Community (carousel) fraud. We successfully obtained UK judgement against two Dubai based third parties who had assisted in the fraud. We then subsequently enforced the judgements against their assets overseas in the Caribbean recovering circa 1m. Parkwell Investments (reported case) Appointed Provisional Liquidator of a company suspected of Missing Trader Intra-community VAT fraud (Carousel fraud) in relation to the sale and purchase of VOIP (voice over internet protocol) telephone minutes. Identified a c.$300,000 movement of funds overseas by the directors in breach of the provisional liquidation order. The investigation resulted in the directors being prosecuted for contempt of court, imprisoned and subsequently made Bankrupt. Football Portsmouth City Football Club Ltd Appointed as liquidators of the company following the exit from Administration in January During the course of the Administration, various assets, including the company s membership of the Football League, were sold and a Company Voluntary Arrangement (CVA) was approved setting out the proposed return to creditors. HM Revenue and Customs (HMRC) had previously issued a winding-up petition in December 2009, which stayed due to the Administration. When the creditors required the Administrators to apply for their release, HMRC made an application for the petition to be reinstated and we were nominated as liquidators by the majority of creditors to investigate the affairs of the company and, in particular, the events leading up to the presentation of the petition. These circumstances led to some complex legal insolvency priority issues which we successfully resolved. To date, our investigation a joint project between Special Investigations and Forensic Services teams at RSM has focused on possible claims relating to antecedent transactions with recoveries to date in excess of 500,000. Project Offside Investigation into the sale of a professional football club and tracing of missing assets. This case also involved an investigation into an Employee Benefit Trust and subsequent claims against the former directors for tax avoidance. We have to date successfully recovered property assets worth 600,000.

7 Special investigations brochure Why RSM? Rapid response The immediate mobilisation of a team of specialists is crucial to any enforcement or insolvency matter to maximise recoveries for stakeholders. For both domestic and international matters, we use a multi-disciplinary team of experienced professionals to enable decisive action in difficult circumstances within hours. Trusted advisors In addition to being instructed regularly by many leading local and international law firms, RSM has a major presence within UK clearing bank panels. We are frequently engaged by UK government agencies in relation to debt recovery and enforcement matters. Commercial fees It is not always clear how the costs associated with an insolvency appointment or investigation will be met when there is no obvious source of funding available at the outset of a case. In many instances, we are prepared to take on cases on a speculative basis, where we examine the prospects for making recoveries and act on a no win no fee arrangements. Key contacts Mark Wilson Partner and Head of Special Investigations mark.wilson@rsmuk.com Rob Armstrong Associate Director rob.armstrong@rsmuk.com Karen Adams Manager karen.adams@rsmuk.com Jack Plunkett Manager, Business Intelligence and Research jack.plunkett@rsmuk.com Gemma Smith Manager gemma.smith@rsmuk.com Jennifer Harrison Assistant Manager Jennifer.harrison@rsmuk.com Scott Loughton Assistant Manager scott.loughton@rsmuk.com Kate Seacombe Assistant Manager kate.seacombe@rsmuk.com T: +44 (0)

8 rsmuk.com The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number ) whose registered office is at 50 Cannon Street, London EC4N 6JJ. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. RSM Corporate Finance LLP, RSM Restructuring Advisory LLP, RSM Risk Assurance Services LLP, RSM Tax and Advisory Services LLP, RSM UK Audit LLP, RSM UK Consulting LLP, RSM Employer Services Limited, RSM Northern Ireland (UK) Limited and RSM UK Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. RSM Legal LLP is authorised and regulated by the Solicitors Regulation Authority, reference number , to undertake reserved and non-reserved legal activities. It is not authorised under the Financial Services and Markets Act 2000 but is able in certain circumstances to offer a limited range of investment services because it is authorised and regulated by the Solicitors Regulation Authority and may provide investment services if they are an incidental part of the professional services that it has been engaged to provide. Baker Tilly Creditor Services LLP is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities. RSM & Co (UK) Limited is authorised and regulated by the Financial Conduct Authority to conduct a range of investment business activities. Whilst every effort has been made to ensure accuracy, information contained in this communication may not be comprehensive and recipients should not act upon it without seeking professional advice RSM UK Group LLP, all rights reserved Expires 0119