Crime Does Not Pay - Confiscating Proceeds of Crime
In cases where a person has benefited from their crime, the police attempt to secure a criminal conviction and also remove the benefit of that crime. Police forces, CPS and the Courts across the country are making more and more use of the powers to seize assets from criminals through confiscation orders made under the Proceeds of Crime Act 2002 (POCA).
There is no end to the agencies that could be involved in identifying or reporting someone as living outside of their means e.g. social workers, financial institutions, solicitors. This is brought to the Police’s attention through the filing of a Suspicious Activity Report. This information could also be uncovered as part of the usual arrest route. Once the Police notify the CPS that they want to proceed with a confiscation the CPS notify the Court prior to sentencing. The decision is then made whether to pursue the order. Notice is given to the Defendant and at this stage the defendant can fight the application. If the defendant is convicted, the judge proceeds to sentence but also sets a timetable for the confiscation proceedings. The defendant has to be deemed to have a criminal lifestyle so the prosecution has to file a statement explaining how the defendant has benefited. The defendant files a response to this. If it is thought that the defendant will try to dispose of the assets the CPS can apply for the assets to be restrained. Once the merits of the order have been argued there is a confiscation hearing which takes into account the value of the benefit; the amount that can be raised; the realisable amount.
Enforcement
Once the order is made it needs to be enforced by the Magistrates’ Court. The CPS can become involved again if the Court is unable to get the money out of the defendant by getting a restraining order; applying to the Crown Court judge for the appointment of an enforcement receiver who will appropriate the defendant’s assets and sell them. Occasionally the Courts will go back to the Police to identify where the assets are and to apply pressure the Magistrates’ Court enforcement officers can also seize assets.
Achievements
This year's Criminal Justice Board target for confiscation orders is to obtain 77 confiscations, with a total value of £ 1,827 million pounds. With three months of the year gone we have achieved 33 confiscations and £1,168,084. (this against 817,000 and 45 confiscations for the entirety of last year 2007/8). Under the asset recovery scheme the Home Office gives 50 per cent of all assets recovered from criminals to front line agencies including the police, CPS and HMCS for reinvestment, and forfeiture. In the last quarter of 2007/8 financial year Cheshire Police received £171,728.69 this represented the 5th highest returns nationwide for that quarter behind The Met police, Merseyside, Greater Manchester Police and Kent.
Operation Huskey: The victim O2 was subjected to a fraud perpetrated by an employee and her friend who benefitted from £3,000,000 overcharging. Assets were identified in the form of property and offshore bank accounts to a total value of £662,000 against which a confiscation order was made.
Operation Herds: This was initiated by a cash seizure carried out by the Money Laundering Team. The surveillance identified the recipient of the cash to be a male who was involved in an illegal money lending operation and possession of ammunition for a firearm and a prohibited weapon. He was convicted of money laundering. Following sentence assets identified £198,000 were subject of a confiscation order.