The New Frontier: Multi-Jurisdictional Allegations of Corporate Misconduct

On Friday 10th February 2012 QEB Hollis Whiteman are hosting an evening of presentations regarding Multi-Jurisdictional Allegations of Corporate Misconduct.

The topics that will be covered are:

Money Laundering: William Boyce QC
Cartel Offences and Mutual Legal Assistance: Adrian Darbishire
Extradition: John Lynch
Asset Freezes: Robin Lööf

If you would like to attend, or would like any further information, please email training@qebhw.co.uk

Background Scenario

Xplore Inc is a large mining company in Caspistan, one of the larger former Soviet republics, where it is the only operator in sub-surface mining having been hastily privatised in the immediate aftermath of independence.   Its CEO and majority shareholder is Ms Zoltan.

While Ms Zoltan is in London to attend a seminar organised by the British Chamber of Commerce, there is a popular uprising in Caspistan and when the security forces withdraw their support, the government falls.  Fearing for her safety, Ms Zoltan lingers in London.

The new Caspistani regime, propped up and heavily influenced by the security forces, launches investigations into “suspicious business practices” during the former government.  Among other things, it claims to have evidence that Xplore Inc inflated its bid in a recent tender for a new concession which was then awarded to the only other bidder: Qore UK plc.  Shortly after Qore UK plc was awarded the concession, Ms Zoltan purchased a flat in Green Park One, London’s most recent, high-profile luxury development. 

Ms Zoltan’s accounts in Caspistan are frozen but she derives an income from shares in a chain of hotels, held in a Luxembourg-based trust, paid into an account with LuxeBanque.  As her new flat is yet to be completed, she stays in one of the chain’s London hotels.

On the basis of suspected offences against its anti-cartel legislation by Xplore Inc, Caspistani prosecutors issue a mutual legal assistance request to the SFO for “production of all documents held by Qore UK plc relating to its activities in Caspistan.”

Suspecting Ms Zoltan of money laundering, Caspistani authorities also request copies of “all documentation relating to the financing of the purchase of [the Green Park One flat] by Ms Zoltan” and that her UK-based assets be frozen.  The Caspistani authorities also request Ms Zoltan’s extradition to face charges of corruption and money laundering.

Meanwhile, with a view to “supporting the development of democracy and the rule of law in Caspistan, and helping the Caspistani people to build the foundations of an economy which promotes broad-based growth”, the EU Council legislates to freeze, with immediate effect, the assets of 26 listed former members of government and wealthy business people, including Ms Zoltan.