Two men appeared at City of London Magistrates Court charged with offences of conspiracy to defraud relating to the use of falsified bank documents to obtain a bank loan of 22 million euros. It is alleged that they conspired to induce EFG Bank to believe that there was on deposit at Bank Julius Baer in Guernsey a substantial sum as security for the loan.
Michael Andrew Shephard (DOB 29/01/61), formerly a property developer, is charged as follows:
1) Conspiracy to commit fraud contrary to s.1(1) Criminal Law Act 1977 and s1 Fraud Act 2006 between 1 July 2008 and 22 August 2008.
Between the above dates, dishonestly and intending to make a gain for himself or another made a representation to EFG Bank which was and which he knew was or might be untrue or misleading namely that Michael Andrew Shephard had on deposit at Bank Julius Baer, Guernsey the sum of £76 million which was accepted as security for a loan of €22 million obtained from EFG Bank.
2) Conspiracy to use false documents contrary to s.1(1) Criminal Law Act 1977 and s.3 Forgery & Counterfeiting Act 1981 between 1 July 2008 and 22 August 2008.
Between the above dates, Michael Andrew Shephard conspired with Kevin James Christopher Steele and others to use instruments, namely letters purporting to originate from Bank Julius Baer, Guernsey, showing that Michael Andrew Shephard had on deposit at Bank Julius Baer, Guernsey the sum of £76 million which was and which he knew or believed to be false, with the intention of inducing EFG Bank to accept it as genuine and, by reason of so accepting it, to do or not to do some act to its own or other person's prejudice.
Kevin James Christopher Steele (DOB 09/06/60), former partner at Mishcon de Reya Solicitors, is charged as follows:
1) Conspiracy to commit fraud contrary to s.1(1) Criminal Law Act 1977 and s1 Fraud Act 2006 between 1 July 2008 and 22 August 2008.
Between the above dates, dishonestly and intending to make a gain for himself or another made a representation to EFG Bank which was and which he knew was or might be untrue or misleading namely that Michael Andrew Shephard had on deposit at Bank Julius Baer, Guernsey the sum of £76 million which was accepted as security for a loan of €22 million obtained from EFG Bank.
2) Conspiracy to use false documents contrary to s.1(1) Criminal Law Act 1977 and s.3 Forgery & Counterfeiting Act 1981 between 1 July 2008 and 22 August 2008.
Between the above dates, Kevin James Christopher Steele conspired with Michael Andrew Shephard and others to use instruments, namely letters purporting to originate from Bank Julius Baer, Guernsey, showing that Michael Andrew Shephard had on deposit at Bank Julius Baer, Guernsey the sum of £76 million which was and which he knew or believed to be false, with the intention of inducing EFG Bank to accept it as genuine and, by reason of so accepting it, to do or not to do some act to its own or other person's prejudice.
3) Abuse of position in breach of s.4 Fraud Act 2006 and contrary to s.1 of Fraud Act 2006 between 10 October 2007 and 4 September 2008.
Between the above dates, Kevin James Christopher Steele abused his position in relation to the procuring of an undertaking given to EFG Bank in respect of the EFG loan, the general mishandling of the Michael Andrew Shephard client account and the theft of £1.8 million from that account to settle an unrelated civil claim.
Both defendants were released on conditional bail. The next hearing will be on 12 August 2010 at Southwark Crown Court.
The investigation has been conducted jointly with Warwickshire Police.
