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International Commercial Fraud: A Review

by Patrick Upward QC

Fraud represents an area of the worldwide economy that defies recession, recognises no borders and embraces all cultures. In its myriad forms it enjoys a process of continuing metamorphosis, seeking always to stay one or more steps ahead of the authorities. Its nature draws the innovative miscreant. Its potential for profit lures the ruthless and the unprincipled. Those who previously might have taken up the cudgel, primed the pistol, 'crossed the pavement' or 'leapt the jump', now see the easier returns that can flow from the paper chase and modem.

With increasing skill, the modern scoundrel has addressed the techniques of the money markets, the secrets of re-insurance and the mysteries of 'high yield investment programmes'. In doing so he has forced Governments, banks and financial institutions to recognise that the dangers inherent in fraud are no longer represented by the three-card trick or the price of snake oil. The consequent reaction has seen a flood of legislation and regulation. Designed to frustrate the rogue, together they form a daunting encounter for professional advisers and investigators. It is these difficulties that the editors of International Commercial Fraud have sought to address.

The book's format is not unique, but is unusual in that it draws together contributions from thirty or more individuals, each of whom is expert in his or her field. Where it may be unique is in one book to combine sections on the criminal law, the civil law and regulation.

How many times has a lawyer, no matter how skilled, wondered where to find the answer to a problem, knowing that it hovers in the distant purview of his or her recollection? How many times has a professional person, unwillingly burdened by his partners or his management with responsibility for compliance, fumbled with the true extent of that responsibility? How many company directors and secretaries are truly alive to the financial dangers that may befall their companies, as much by accident as by design, as much from within as without?

The section on the investigation of fraud is as useful to those whose interest is to see if a fraud is happening as to those who seek to prove it after the event. The section covering the criminal law is a comprehensive survey of the current law and encompasses the legislation currently promised in the in the Proceeds of Crime Bill. In doing so, it deals not only with the obvious criminal offences, but also with the important aspects of money laundering, corruption, jurisdiction and extradition. The contribution on international judicial assistance and Letters of Request is first rate, no matter which side to the case is seeking information. Its value is reinforced in the second volume by the splendid introduction to what may await the unwary in the Cayman Islands, the Bahamas, Jersey, the Isle of Man and elsewhere.

The civil law, together with individual sections on injunctions, insolvency, media law, banking and insurance, are set out to give a clear insight into potential problems and a ready indication of their resolution. The chapter dealing injunctions and interim remedies is made particularly helpful by the inclusion of standard forms in its appendices.

This is not a book for students neither does it pretend to give a ready answer to every question. Nevertheless, it will prove a useful tool to the practitioner and professional adviser and should be essential reading for every auditor, compliance officer and boardroom member.

Publication Details

International Commercial Fraud
Hardcover - 1104 pages (21 December, 2001)
Sweet & Maxwell
ISBN: 0752006177

Buy online at www.amazon.co.uk

11 March 2002

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