Novel solutions needed to succeed in corruption claims

Identifying corruption can often be daunting even for sophisticated clients but if corruption is to be stamped out, it is absolutely necessary to pursue the wrong doers. Here we focus on a novel solution which we formulated and used in order to enable our client to successfully do just that.

Our team

Our expert dedicated civil fraud team acts in complex disputes and claims involving dishonestly, fraud or corruption, specialising in investigating fraud and corruption; tracing misappropriated assets; and obtaining urgent worldwide injunctive relief to secure those assets. We have acted for state governments, telecommunications and energy companies, international conglomerates, and high net worth individuals. Our expertise in freezing assets pending a liability trial and our well-honed skills in sifting through evidence and analysing financial data, in collaboration with our team of external experts, enables us to plead the forensically detailed cases needed in these hard-fought battles. Success however often depends on our strategic thinking and the novel solutions which our team is expert in providing.

Challenge

On such novel solution was needed when we acted for Intercontinental Bank (later Access Bank), a major bank in Nigeria, in a claim brought in the English High Court against its former managing director. The bank alleged that he had engaged in an extensive corrupt plan to misappropriate the bank’s assets and orchestrate an unlawful share price rigging scheme which fraudulently deprived the bank of almost US$1bn. The issue facing us was that the defendant could not travel to the UK for the trial as he was subject to a travel ban in his own country. Although video link to Nigeria is excellent, nevertheless we could not envisage that our cross-examination of a defendant whom the bank alleged to be a sophisticated and skilled fraudster would be as effective remotely as it could be if our leading counsel could question the defendant face to face.

Solution

While cross-examination remotely has certainly become more commonplace since Covid, we considered that in a case of this nature, involving allegations of dishonesty and corruption, it was essential for our leading counsel and the solicitor team to be able to see the defendant’s responses, mannerisms and reactions first hand and in person in order to most effectively put the bank’s case and to defend our client’s position. On our application, the trial judge in England and the Nigerian authorities agreed that the entire trial should take place in Nigeria with the judge presiding over it remotely from the English High Court in London. The entire legal teams for both the claimant bank and the defendant moved base to Nigeria and remained there for the six-week trial while an associate from both sets of solicitors remained in England to attend court in person each day to assist the judge. We were able to ensure therefore that cross-examination took place in person. As a consequence, the other witnesses, most of whom were based in Nigeria were able to give evidence in person without incurring the time – and the parties incurring the cost – of travel to England.

Outcome

During the course of this case, we secured worldwide freezing orders and in collaboration with the bank and expert forensic accounting and global asset tracing experts, identified the full extent of the alleged corruption. We also secured the evidence which enabled the bank to trace significant amounts of the misappropriated funds into high-end London properties. While conducting the trial from overseas was a novel approach and new to the judge, it was entirely successful, and we obtained judgment. Substantial recoveries were made for the bank. The bank’s former managing director was also subject to criminal proceedings in Nigeria, albeit that he continues to deny the allegations of fraud and corruption made against him.