freezing injunction update
Blake Lapthorn's Fraud team has recently been successful in
obtaining world wide freezing injunction orders against defendants
involved in Missing Trader Intra Community (MTIC) fraud.
MTIC fraud is a sophisticated scheme which was designed to
defraud HMRC of large sums of VAT, see diagram below. The fraud was
prevalent in the UK and throughout Europe between 2000 and 2006. It
involved the purported selling of large volumes of high value
electronic goods which were traded into and out of the UK from
Europe thereby incurring huge VAT liabilities and fraudulent VAT
reclaims. Often the goods would be traded in a circle between the
companies involved on the same day. The fast moving and cyclical
nature of the fraud earned it the epithet 'carousel fraud'.
By using forensic accounting techniques, Blake Lapthorn assisted
the client in identifying payments where monies were transferred
out of the jurisdiction, to conceal proceeds of the fraud.
By urgently collating and presenting evidence, Blake Lapthorn
was successful in obtaining ex-parte world wide freezing injunction
orders against the defendants. To obtain the orders it was
necessary to demonstrate that:
- the applicant was acting reasonably, conscionably and without
- the applicant had a cause of action stemming from a legal or
- the English court had jurisdiction
- the applicant had a good arguable case (alleging fraud alone in
this instance would not have been sufficient)
- there was a risk that the defendants' assets would be
By acting quickly and decisively, Blake Lapthorn's Fraud team
protected the client's position by preventing the proceeds of the
fraud being dissipated and securing the defendants' assets until
If you have any questions regarding freezing injunction orders
or other ancillary relief related to fraud, please do not hesitate
Potts, partner in the Civil Fraud and Asset Recovery
team on 01865 254270 or email@example.com.
Rees, partner in the Civil Fraud and Asset Recovery
team on 020 7814 6926 or firstname.lastname@example.org.