Civil Fraud

Civil fraud, both domestic and cross-border, is a core practice area for members of 7KBW, which is recognised as a leading set in the field.

7KBW’s expertise includes pursuing and defending all types of fraud claims, many of which are very high-value and cross-jurisdictional.

Traditional fraud claims in which members have acted have involved claims for breach of trust, breach of fiduciary duty and torts (often against company directors), and accessory liability claims against those who have assisted or benefited from a fraud, including for dishonest assistance, knowing receipt and unjust enrichment. Recent examples include the SKAT Litigation, involving very large claims by the Danish revenue authorities for alleged tax fraud, and a number of matters connected with the collapse of Greensill.

Since a key element of civil fraud work is the location and preservation of misappropriated assets, members have a recognised expertise in obtaining and resisting interim injunctions, particularly freezing injunctions and proprietary injunctions, as well as obtaining orders for the preservation of property and other evidence. Members also offer strategic and tactical advice regarding asset recovery. Examples of cases where members succeeded in having freezing injunctions discharged include: PDVSA Servicios SA v Clyde & Co LLP [2020] EWHC 2819 (Ch); The Republic of Djibouti v Boreh [2015] EWHC 769 (Comm); [2015] 3 All ER 577; Blue Holdings (1) Pte Ltd v United States of America [2014] EWCA Civ 1291; [2015] 1 WLR 1917; and Anglo Financial SA v Goldberg [2014] EWHC 3192 (Ch).

A significant proportion of cases in 7KBW’s other key practice areas also require expertise in fraud. For example:

• Insurance claims involving underlying fraud.
• In the shipping and commodities sector, 7KBW’s work includes all forms of marine fraud, such as letter of credit fraud, bill of lading fraud, scuttling, theft of cargo, phantom ships and phantom cargoes.
• Chambers’ audit negligence work is another area which often involves allegations of fraud.  Examples include Cattles Ltd and Welcome Financial Services Limited v PwC (a very substantial Commercial Court claim by sub-prime lenders against their former auditors following the collapse of the Cattles Group).

Members offer extensive experience in this field. Significant civil fraud cases undertaken by members include:

• PDVSA Servicios SA v Clyde & Co LLP [2020] EWHC 2819 (Ch)
• Group Seven v Notable Services LLP [2019] EWCA Civ 614
• Simetra Global Assets Ltd v Ikon Finance Ltd [2019] EWCA Civ 1413
• “The Brillante Virtuoso” (Suez fortune Investment Ltd and Piraeus Bank SA -&- Talbot Underwriting Ltd) [2019] EWHC 2599 (Comm)
• Instant Access Properties Ltd v Rosser & ors [2018] EWHC 756 (Ch)
• Bilta Ltd v Royal Bank of Scotland Plc [2017] EWHC 3535 (Ch)
• The Republic of Djibouti v Boreh [2016] EWHC 405 (Comm)
• Orb a.r.l. v Ruhan [2015] EWHC 262 (Comm)
• OJSC Bank of Moscow v Chernyakov [2016] EWHC 2583 (Comm)