Pressure Is on Serious Fraud Office to Raise Its Game in the Credit Crunch; Is America Better Than UK at Cracking Down on Fraud? US Federal Agents with Handcuffed Former Bear Stearns Hedge Fund Manager Matthew Tannin, Centre, Who Was Accused of Securities Fraud in the Wake of the Collapse of the Subprime Mortgage Market in June

The Evening Standard (London, England), September 16, 2008 | Go to article overview

Pressure Is on Serious Fraud Office to Raise Its Game in the Credit Crunch; Is America Better Than UK at Cracking Down on Fraud? US Federal Agents with Handcuffed Former Bear Stearns Hedge Fund Manager Matthew Tannin, Centre, Who Was Accused of Securities Fraud in the Wake of the Collapse of the Subprime Mortgage Market in June


Byline: JOSHUA ROZENBERG

THE dramatic impact of the financial crisis hitting banks and mortgage companies may still be rapidly unfolding, but already the lawyers are busy. The latest Kroll Global Fraud Report published this week shows that the average company loss to fraud has shot up 22% "largely driven by the credit crunch and tough economic climate".

Blake Coppotelli, senior managing director in Kroll's business intelligence and investigations division, warned: "We expect to see this increase further as conditions become tougher for business and the full impact of the credit crunch unfolds." There has been a sharp contrast in the ways the UK and US financial authorities have responded to the crisis in the credit markets. And so it has proved with law enforcement, too.

Britain's Serious Fraud Office (SFO) "uses significantly more resources per case than its New York counterparts and achieves significantly less for its efforts". So said Jessica de Grazia, a former New York senior prosecutor, in a report commissioned by the SFO and the Attorney General.

De Grazia found the comparison "startling".

For example, in a joint US/UK conspiracy prosecution, the District Attorney's office in New York used a team of eight to convict 14 defendants in a third of the time that it took for an SFO team totalling 31 to prosecute four defendants, three of whom were convicted after an eight-month trial.

An important factor contributing to the SFO's low productivity was the English law of disclosure, which de Grazia described as "unfit for purpose". Teams of defence lawyers are tied up for months or even years assessing evidence not needed by the prosecution.

By contrast, New York prosecutors simply hand over the "key to the warehouse door".

De Grazia recommended in June that "serious consideration" should be given in England and Wales to reinstating this policy, scrapped after 1996 to reduce defence costs and thus the legal aid budget. But the idea was immediately rejected by the Attorney General, Baroness Scotland.

Kevin Roberts, a London-based partner in the US firm Morrison & Foerster, says the current disclosure regime is simply not suited to large fraud cases.

"It results in delay, overburdens the SFO and potentially prejudices the defendant.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Pressure Is on Serious Fraud Office to Raise Its Game in the Credit Crunch; Is America Better Than UK at Cracking Down on Fraud? US Federal Agents with Handcuffed Former Bear Stearns Hedge Fund Manager Matthew Tannin, Centre, Who Was Accused of Securities Fraud in the Wake of the Collapse of the Subprime Mortgage Market in June
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.