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David Aaronberg QC and Nichola Higgins achieve hat trick for the SFO in €22 million (euro) fraud

David Aaronberg QC and Nichola Higgins successfully prosecuted Kevin Steele for conspiracy to commit fraud by false representation, conspiracy to use false instruments and fraud by abuse of position.

While an equity partner at Mishcon de Reya, Kevin Steele assisted his client, Michael Shephard and Shephard's assistant, Mark Pattinson, to obtain a loan of €22 million from a private Swiss bank in order to develop a luxury hotel resort in Turkey. They obtained the loan by placing before the private bank letters from another private bank purporting to show that Shephard had some £76 million in offshore accounts in Guernsey. The letters were forged and no such bank accounts existed.

Kevin Steele also abused his position at Mishcon de Reya in relation to Shephard's client account, in particular by using £1.8 million of the proceeds of the fraud on the Swiss bank to pay costs owed by another client to whom Steele had given negligent advice.

Kevin Steele was convicted by a jury on all counts. Shephard and Pattinson pleaded guilty before the trial.

For press coverage please see the following:

• The Times
• The Lawyer
• The Daily Telegraph
• Lancashire Telegraph

7 December 2011

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