On Monday 24 May 2021 the High Court heard evidence that the Serious Fraud Office (SFO) encouraged Neil Gerrard a former partner of the law firm Dechert to leak confidential information about his client whilst it was the subject of an investigation.
SFO Investigation | Rosenblatt’s Financial Crime Team
A lawsuit against Dechert and the Serious Fraud Office (SFO) launched by Eurasian Natural Resources Corporation (ENRC), a FTSE 100 mining company at the centre of an eight-year SFO investigation is being heard by the High Court this week.
ENRC hired Mr Gerrard and Dechert in 2011 to investigate corruption allegations against the company. In August 2011, Mr Gerrard is believed to have walked into the Chelsea Brasserie on Sloane Square to meet with colleagues. As he walked towards the table, he is alleged to have rubbed his hands and stated “right boys, I’m in rape mode [in pursuit of fees]….[let’s] screw these f***ers.” Mr Gerrard vehemently denies making this statement.
ENRC subsequently fired Dechert two years later in 2013, after paying fees of more than $18m. They are now alleging that the firm was colluding with the SFO throughout the investigation. It is ENRC’s case that Mr Gerrard allegedly bullied directors at ENRC into taking his advice by threatening that the SFO would raid their directors’ homes.
ENRC, which was co-founded by three billionaire Kazakh businessmen and the Kazakh government, alleges that the SFO encouraged Mr Gerrard’s conduct because it was ‘desperate’ to secure a high-profile prosecution. Dechert are alleging that senior staff at ENRC oversaw bribes to senior officials in Africa, flouted sanctions and overpaid during acquisitions of related companies, all of which are denied by ENRC. The SFO opened their investigation into ENRC in 2013 over allegations of fraud, bribery and corruption surrounding the acquisition of mineral assets in Africa.
The SFO, which has faced recent criticism over the collapse of a separate prosecution last month, stands accused of misfeasance in public office. The SFO, which will start laying out its defence on Wednesday 26 May 2021, rejects all claims against it as “hopeless”, according to court filings.
This is a protracted matter, with the virtual hearing set to continue until September 2021, allowing the court time to hear almost a decade-long dispute between the parties. Our Financial Crime team will continue to monitor this trial and provide further updates as the case unfolds.
Rosenblatt can help
Rosenblatt has a wealth of experience in financial crime and is uniquely placed to support clients’ that are the subject of a Serious Fraud Office investigation and prosecution having being involved in high profile investigations into a global pharmaceuticals company, a multi-million pound affordable property investment scheme, a multi-million pound pension fraud scheme and a world leading global security company.
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