White Collar Crime
Fraud in the UK has for the past few decades been increasing at an alarming rate. However, the intervention of the Serious Fraud Office (SFO) the fraud rate and raids have increased over the last few years, in particular, resulting from the implementation of the Fraud Act of 2006. SFO has demonstrated considerable effort in the past year gathering information with regard to major scam in the United Kingdom. In 2017 the agency completed more than 30 fraud raids on major suspects which is more than what had been done in the last three years inclusively. Based on the rising cases it has become clear that fraud in the UK has increased by above 500 percent with respect to the last fifteen years. The latest public reports revealed about 6 percent rise in major frauds throughout 2017 as the infringement amounted to about 2 billion Euros[1]. In this context, it is rather not surprising that SFO has acquired an aggressive action plan to smoke out all the fraudsters over the last few years as it seeks to stop rotting. Thus, following the implementation of the Fraud Act of 2006, SFO’s intervention has critically reduced the rate of fraud in the United Kingdom significantly.
Fraud under the Fraud Act 2006 refers to the deliberate dishonesty that is made for self-gains or to cause damages to another[2]. Fraud is a crime that entails the infringement of civil law in the UK. Dishonesty or having an awareness that the representation is misleading or false with the intention of increasing personal gain and exposing others to harm or loss might amount to fraud by false representation[3]. On the other hand, where there lies a legal obligation to disclose any form of information, but one fails to do so with the motive of gaining or causing harm, this would amount to fraud by failing to disclose[4]. Abuse of position fraud is likely to where trust positions are abused with dishonesty with the intention of enhancing financial gains that might result in losses. A test of dishonesty is needed to confirm fraud occurred. This involves trying to determine whether the defendant realized that his actions were unlawful but opted to continue for his or her gains. This is best illustrated by the case of Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 that concerned the infringement of trust and accountability for deceitful assistance[5]. Fraud is a victimless crime because it is an illegal act involving only the perpetrators with no direct victims.
SFO was set by in 1987 but initiated the following year, with the objective of creating an amalgamated organisation accountable for investigation and trial of serious fraud cases. The SFO entails a non-ministerial regime department of the UK’s government that mainly investigates and prosecutes those that are involved in complex and extensive fraud, bribery and corruption in Wales, Northern Ireland and England[6]. Throughout the twelve months before March 2018, the agency in its interventions tripled the rate of raids that were executed thus reaching its highest peak in the last six years[7]. It is worth noting that it is only about 9 cases that were raised in 2016 as well as a total of 13 which is a total of both 2014 and 2015[8]. This, therefore, illustrates that the passing of the Fraud act has in some ways fuelled the raids resulting in a decrease of major fraud in the UK. Over the last few years, the SFO has presented some major high-profile fraud probes despite the mounting political criticism against such practices. Some of the high profile cases that it has helped in addressing include Petrofac oil giant, British American tobacco as well as Rio Tinto mining firm[9]. It is widely assumed that the statistics of raids are even higher than what is reported to the general public based on the sensitivity of the issue based on the need to uphold confidentiality about the fraud and investigation practices.
The integration of both SFO and Fraud Act of 2006 has had a positive impact with respect to fraud. After the enactment of the Fraud Act, it is evident that SFO has been able to increase its intervention in fraud raids than before. The act mainly represents one of the most radical transformations in regard to the law of criminal fraud having come into force on January of 2007. While considering the duration that is taken normally by prosecutions and criminal investigations it is apparent that the fact that the agency has solved a significant number of cases in the recent cases best illustrates its ability to deal with fraud. The fact that SFO has been able to prosecute more individuals is driven by the fact that the Act created more opportunities to made raids by making corporate corruption and bribery prosecutable[10]. In other words, the act has resulted in a remarkable improvement of fraud prosecutions since SFO is currently the only institution that is seriously fighting fraud following the provisions of the Act. Besides, its funding has improved, and the assertion of this legislation has enhanced its courage and morale to pursue bigger cases without being undermined by political pressure.
In conclusion, has for the longest period remained as a pressing and yet controversial public issue. Fraud in the UK has increased at an alarming rate in the last decade but the enacted of the Fraud Act has helped in reducing corruption cases drastically. The act serves as a valuable prosecution tool as it upholds the interest of the society at heart by encouraging more strategic measures to establish and establish any form of fraud. In the past, the provisions were rather weak with no logical basis which accounts for the high rates. SFO has been successful in the fight against corruption courtesy of the fraud act. Even though, the SFO has achieved so little there is hope based on its current effort to unleash major cases.
References
Barrington Robert, ‘What’s the State of Play at the Serious Fraud Office?’ (Transparency International UK, 29 March 2018) < https://www.transparency.org.uk/whats-the-state-of-play-at-the-serious-fraud-office/ > accessed 26th November 2018
Consultancy UK, ‘Number of Serious Fraud Office raids highest in six years’ (Consultancy UK, 31st July 2018) <https://www.consultancy.uk/news/18113/number-of-serious-fraud-office-raids-highest-in-six-years> accessed 26th November 2018
Doig Alan. Fraud: The Counter Fraud Practitioner's Handbook (CRC Press, 2016)
Harrison Karen and Ryder Nicholas, The Law Relating to Financial Crime in the United Kingdom (Taylor & Francis, 2016)
Ormerod, David "The Fraud Act 2006--Criminalising Lying?" The Criminal law review (2007): 193.
Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378
[1]Consultancy UK, ‘Number of Serious Fraud Office raids highest in six years’ (Consultancy UK, 31st July 2018)
[2] Ormerod, David "The Fraud Act 2006--Criminalising Lying?" The Criminal law review (2007): 193.
[3] Doig Alan. Fraud: The Counter Fraud Practitioner's Handbook (CRC Press, 2016)
[4] Barrington R, ‘What’s the State of Play at the Serious Fraud Office?’ (Transparency International UK, 29 March 2018)
[5] Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378
[6] Harrison Karen and Ryder Nicholas, The Law Relating to Financial Crime in the United Kingdom (Taylor & Francis, 2016)
[7] Consultancy UK, ‘Number of Serious Fraud Office raids highest in six years’ (Consultancy UK, 31st July 2018)
[8] Consultancy UK, ‘Number of Serious Fraud Office raids highest in six years’ (Consultancy UK, 31st July 2018)
[9] Consultancy UK, ‘Number of Serious Fraud Office raids highest in six years’ (Consultancy UK, 31st July 2018)
[10] Barrington R, ‘What’s the State of Play at the Serious Fraud Office?’ (Transparency International UK, 29 March 2018)
