Following developments in the US where Allen Stanford was taken into FBI custody in a criminal investigation, the SFO can now reveal that responding to a formal request from the US Department of Justice, it has obtained a restraining order over $100 million of assets believed to be held at certain London financial institutions. The order is in connection with Robert Allen Stanford, Stanford International Bank and others.
These funds were allegedly acquired in connection with a suspected $7 billion investment fraud scheme operated by Stanford. In the afternoon of 7 April an SFO assets recovery lawyer applied to the Central Criminal Court where HHJ Kramer QC granted an order which preserves the assets pending the outcome of the criminal proceedings brought by the Department of Justice in the US.
The CPS and City of London Police also assisted the US DOJ in their earlier inquiries.
The Serious Fraud Office has recently reviewed its operations on restraint of assets in the UK believed to be the proceeds of crime. As a result it is now earmarking dedicated resources at the beginning of its investigations to advise and intervene where appropriate. The organisation aims to increase the volume of assets restrained, confiscated, recovered and - in the future - forfeited. It also aims to increase the potential for compensation payments to victims and HM Treasury.
Commenting on this action SFO Director Richard Alderman said, "I am delighted that the SFO has been able to secure a freezing order of this magnitude and within five hours of it being requested. I am determined that supporting our US counterparts in this way becomes a routine example of cross-border cooperation"
