Mishcon's Culture vs Corruption Diary - August 2014

Posted on 29 August 2014

United Kingdom

Scotland Yard's deputy commissioner has written to Keith Vaz, the chairman of the Commons home affairs select committee, to state that they have 260 crates of papers on police corruption in one part of London alone. The documents, relating to Operation Tiberius, claim that 40 officers and 19 detectives were involved with assisting eight crime syndicates to avoid being brought to justice.
The Times, August 4 2014

Southwark Crown Court ordered Edward Davenport to pay a £12m confiscation order and nearly £2m in compensation following his 2011 conviction for defrauding victims via fake start-up loan schemes. Davenport had previously been sentenced to seven and half years jail, but following his release on license in May 2014 due to kidney problems, the confiscation order has been put in place instead of further jail time.
Daily Telegraph, 18 July 2014

The Liberal Democrats are being pushed to repay £2.4m of donations which were made to party by a convicted fraudster. The Parliamentary and Health Service Ombudsman said that they believed the previous inquiries into the donations made by the Electoral Commission were not sufficient and that the Commission failed to make detailed enough enquiries into the donations. The donations were made in 2005 by Michael Brown via his company 5th Avenue Partners. Mr Brown was given a seven year jail sentence in 2012.
Matt Dathan,
The Times, July 17 2014

North America

The former mayor of New Orleans during Hurricane Katrina, Ray Nagin, has been found guilty on 20 charges on accepting bribes and jailed for 10 years. The charges related to bribes by contractors who wanted work rebuilding New Orleans and who gave Nagin several hundred thousand dollars of bribes and lorry loads of granite for his family business.
David Millward,
Telegraph, 10 July 2014

Western Europe

Ex-Fianna Fail TD and senator Ivor Callely has been sentenced to 5 months in prison for fraudulently claiming more than €4,000 of expenses via faked invoices for mobile phone costs.
Belfast Telegraph, 28 July 2014

The Serious Fraud Office has notifed at least six former employees of French industrial firm Alstom that they will be charged with corruption offences. The SFO's criminal charges relate to large transport projects Alstom was involved with in Tunisia, Poland and India between 2000-2006. No further details of the charges were available, but they individuals include British nationals who held senior positions at Alstom.
Caroline Binham,
Financial Times, 26 July 2014

Former French President Nicolas Sarkozy is facing a series of criminal charges relating to campaign spending between 2007 and 2012. The charges relate to allegations that Sarkozy received nearly €50m in financing for his campaign from Muammar Gaddafi. He is also accused of using his political influence and celebrity to attempt to obtain insider information in another corruption investigation against him.
Rory Mulholland,
Telegraph, 3 July 2014

North Africa

Leaked information from a United Nations investigation claims that FTI Consulting, a public relations company led former foreign minister Mark Malloch-Brown, were involved in a "state-sponsored cover-up" aimed at hiding allegations of mismanagement and corruption of Central Bank Funds by Somalian president Hassan Sheikh Mohamud. President Mohamud is accused of working with US law firm Schulman Rogers to misappropriate public funds. The investigation claims that FTI Consulting was involved in covering up and discrediting allegations of corruption.
Jerome Starkey, Tristan McConnell,
The Times, 24 July 2014

Middle East

Bruce Hall, the former chief executive of Alba, Bahrain's state-owned aluminium producer, has been sentenced to 16 months in prison. He was found guilty of receiving bribes from a member of the Bahraini royal family. Hall must pay a confiscation order of £3.1m to avoid an extra ten years of jail time.
Marcus Leroux,
The Times, July 23 2014


Southwark Crown Court sentenced three men to jail for their involvement in bribing state officials in Indonesia and Iraq. Dennis Kerrison was sentenced to 4 years; Paul Jennings to 2 years; and Miltiades Papachristos to 18 months. The Serious Fraud Office investigation concerned the payment of bribes by Associated Octel (later renamed Innospec) to increase the sales of tetraethyl lead. Innospec previously pleaded guilty in 2010 to bribing Indonesian officials and was fined £7.5m in the UK.
Press Association,
The Guardian, 5 August 2014

Peter Humphrey, a private investigator and former GlaxoSmithKline employee, and his wife, have been charged by Chinese authorities with illegally trading personal information. Another thirty GSK staff have been sacked in China after allegations that doctors had been bribed to use GSK's products.
Nick Goodway,
The Independent, 24 July 2014