New Zealand Governance Centre Inaugural Conference 15 and 16 - - PowerPoint PPT Presentation

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New Zealand Governance Centre Inaugural Conference

15 and 16 August 2008

Dealing with serious fraud

Grant Liddell, Director and Chief Executive, Serious Fraud Office

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220 Theft by person in special relationship (1) This section applies to any person ... in circumstances that the person knows require the person--- ... (b) to deal with the property ... in accordance with the requirements of any other person. (2) Every one to whom subsection (1) applies commits theft who intentionally fails to account to the other person as so required or intentionally deals with the property, or any proceeds of the property, otherwise than in accordance with those requirements. ... (4) For the purposes of subsection (1), it is a question of law whether the circumstances required any person to account or to act in accordance with any requirements.

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• Review of the Serious Fraud Office

Jessica de Grazia, June 2008

• Compared English SFO with 2 New York

prosecution agencies - one state, one federal

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Fraud cases FY2002/3 - 2006/7 Conviction rate Resources ($NZ equivalent) - FY2007 Staff SFO (Eng) 166 61% $113m 311 SDNY (federal) 810 97% not public 77 DANY (state) * = fraud work 124* 92%* $108m 19* SFO (NZ) 57 90% $5m 34

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Disclosure

• DANY, SDNY “keys to warehouse” approach - all

unused prosecution material disclosed

• SFO (Eng) - Criminal Procedure and Investigations Act

1996: – requires “scheduling” of potentially relevant prosecution material – disputed disclosure arbitrated by judge – system discourages early guilty pleas

• Allied Deals:

– SDNY: 5 staff, 6 weeks – SFO (Eng): 20 staff, 2 years

• SFO (NZ) - all used and unused relevant material

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Key features of agency process

• SDNY and DANY

– cradle to grave – lawyer-led investigations, multi-disciplinary teams – independent prosecutor

• SFO (Eng)

– some investigations unfocused, arising from lack of role clarity, skills shortages, insufficiently “pro-active” investigative techniques, lengthy referral and vetting process, heavy reliance on external counsel - briefing and advocacy

• SFO (NZ)

– cradle to grave (integrated, multi-disciplinary teams) – panel counsel

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What are the critical success factors?

• De Grazia:

– Structurally guaranteed prosecutorial independence (UK and NZ traditions support) – Disclosure regime (but SFO conviction rate in late 90s was 80%) – Investigative focus and integration of lawyers in investigations at early stage (but in NZ lawyers don’t examine witnesses)

• Question of powers?

– SFO (Eng and NZ) - document and examination notices – New York agencies - subpoena, grand jury

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