Serious Fraud Office

  • TORPEDO
  • 04/11/08 31/05/09
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Posted: Thu, 26/03/2009 - 12:38

I am tired of all the prevarication. Now that the Strategy Team have been cajoled into indicating we should look favourably on a Scheme of Arrangement, while Dave Whelan runs off with what seems to have been his SECOND payment from KSFUK, I've had enough ordinary letter writing.

I have found information on the Serious Fraud Office. Our plight meets with their remit.
I have compiled a list of 16 frauds/fudges/fiddles/discriminations/conflicts of interest etc which arose in this affair and I propose to send the list below to the Serious Fraud Office.

I do not wish to disable any of our avenues to gain 100% of our money back, so I will delay 24 hours, so that the Strategy Team can review my list and Edwin Coe or John Wright might have a chance to say yes or no. There would be no point in this starting up a situation where we couldn't get anywhere with our fight because it was all sub judice.

Here is the list. If you all want to make up your own or an expanded version and send it off after, then that might make the SFO take more notice.

LIST OF ISSUES

  1. The Isle of Man Regulator, the Financial Supervision Commission was warned (with evidence) on 07/10/08 about the forthcoming collapse but didn’t suspend trading.
  2. A Director of the failed Bank was a Board Member of FSC, the IOM Regulator.
  3. Accounts of personal depositors were transferred to ING by secret court order (The Transfer of Rights and Liabilities to ING Order 2008 No 2666) under the Banking (Special Provisions) Act 2008. Accounts of corporate entities, Local Authorities, Charities, and the cash from the ordinary depositors of the Isle of Man sister company were left stranded.
  4. Since 2003 there has been a Memorandum of Understanding between the FSC and the UK Regulator, the FSA. The FSA ignored this co-operation agreement in their actions over KSF UK. The FSC had co-operated with the FSA a few weeks earlier over a similar situation with a local entity - Bradford & Bingley (IOM), when their UK sister organisations hit trouble.
  5. There needed to have been high level negotiations between the Tripartite Authorities and ING in order to have them all agree to this massive transfer of accounts. Surely negotiations would need to have included the Board of ING in The Netherlands, and must have gone on in secret for some days (or weeks) prior to 08/10/08.
  6. The instructions to Ernst & Young under the sealed Court order to work only on the ING transfer for the first six months are not usual in a Liquidation, where the over-riding objective is to rank all unsecured creditors pari passu. These instructions disadvantage many creditors, not least in regard to timing.
  7. JJB Sports founder, Dave Whelan has been TWICE allowed funds from the Liquidation of KSF UK to allow him to buy a chain of health clubs from ailing JJB. This was by intervention of Chancellor Alistair Darling, and gives preferential treatment to a particular creditor, against all normal Liquidation procedures.
  8. The Financial Services Compensation Scheme usurped the votes of thousands of personal depositors to steal first place on the creditors committee of KSF UK.
  9. The Financial Services Compensation Scheme and “Cats Protection” voted to prevent the Liquidator Provisionally of KSFIOM (the 2nd largest creditor with 15% of liabilities) being allowed a place on the creditors committee of KSF UK.
  10. The Isle of Man Government passed legislation on 9th October 2008 to confirm a Depositors Protection Scheme paying up to £50000. The scheme is unfunded and the Isle of Man Government has prevented it from being triggered, even though a participant bank has failed.
  11. On behalf of the Isle of Man Government, their Attorney General, has persuaded the Deputy Deemster (their Judge) hearing the court case about the Liquidation of KSFIOM to postpone the liquidation three times since October 2008.
  12. The Deputy Deemster (Judge) hearing the case in the Isle of Man Court is former Advocate (Solicitor) for the present IOM Treasury Minister in an earlier financial case – the “Mount Murray” scandal.
  13. The Deputy Deemster hearing the case in the Isle of Man is a relative of the Attorney General. (I have heard they are brothers, but cannot obtain confirmation).
  14. Kaupthing Bank hf, the Icelandic parent company had provided a (much-touted) GUARANTEE covering the liabilities of KSFIOM, the validity of which is (belatedly) in question.
  15. Government of Iceland has nationalised Kaupthing Bank hf, but has cut out the parts it wanted to keep, transferred these to “New Kaupthing”, and left the trashed portion under control of a “Resolution Committee” – Surely not a legal nationalisation under any international law.
  16. Iceland has put “Old” Kaupthing into their equivalent of “Chapter 11”. This purdah-to-evade-your-debts, originally six months, has been extended and is now scheduled to continue until 13/11/09.
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Another issue for the SFO to investigate

  • Flower
  • 18/10/08 31/05/09
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  • Mon, 30/03/2009 - 16:39

Another issue I believe should be investigated is this:

The FSC has said it will fund the cost of developing the SOA (Alix & Partners etc.,) but what about the ongoing cost of running the bank in anticipation of a succesfull SOA?

The LP has indicated that some 35-40 staff have been kept on which must have incurred a much greater overhead than if the bank had gone into liquidation. Surely the FSC should also bear this cost.


Extra costs - Flower Post

  • icdbrazil
  • 10/10/08 30/11/09
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  • Mon, 30/03/2009 - 17:03

Flower,

Very good point. Could you also post under items for next call with Simpson of PW. Asking that he comment and put in application for these to be covered fast.


TORPEDO AND THE SERIOUS FRAUD OFFICE

  • hippychickrobbed
  • 03/11/08 31/05/09
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  • Mon, 30/03/2009 - 13:08

Torpedo ,have you contacted the serious fraud office?


Serious Fraud Office

  • TORPEDO
  • 04/11/08 31/05/09
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  • Tue, 31/03/2009 - 11:30

I often find a proper letter has a better response than an ordinary email, so the letter was sent 30 March and likely to be delivered in London 31 March.

I still intend to add new items to the "untoward events" list as they come to light. The refund of GBP 280,000 to Stockcube Plc is an example.


SFO

  • clodhopper
  • 18/01/09 31/05/09
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  • Sat, 28/03/2009 - 13:31

WE too are tired of the waiting for results through the court's channels. If we had removed funds from someone's bank account - then the police would be arresting us for criminal offences.

It is now over your 24 hour dead line and wonder have you submitted your complaint to te SFO and if so we look forward to your further reporting of their response.


confiscation of wealth

  • hippychickrobbed
  • 03/11/08 31/05/09
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  • Sat, 28/03/2009 - 13:49

I think we all know whose wealth was confiscated in the past, there have been wars brought on about injustices like these. Um but its alright for sir fred to keep his ridiuclous pension, after collapsing a bank, they could have always frozen it and give it to him half in dribs and drabs. Who are they fooling?


Adding to TORPEDO's list

  • Bill
  • 13/10/08 n/a (free)
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  • Thu, 26/03/2009 - 15:50

However TORPEDO's list is used I think its helpful in getting things in perspective. Here are a few more to consider:

Cashen is in fact Deputy Chairman of the FSC, not just any board member!

Another Director, Gelling, is ex Chief Minister

IoM allowed the KSF takeover of Derbyshire when they knew Iceland was a potential risk and that KSF IoM was subsiduary of Kaupthing hf not KSF UK.

Doherty called many depositors to prevent withdrawals when the KSF took over Derbyshire and refer to the absolute security of the guarantee.

FSC accepted the Guarantee on a scrap of paper with absolutely no backing, something that should have raised serious questions.

Kaupthing misrepresented itself as a "Northern European Bank" which was intentionally misleading.

FSC failed to inform, or ensure Derbyshire customers were informed, that they should seek their own advice as to whether they should stay or go when KSF took over. No attempt was made to show that the DBS and KSF guarantees could not possibly have been equivalent. No metion was made of potential problems with Iceland, that had already appeared on the horizon.

Derbyshire bondholders were not permitted to break their accounts without penalty


Serious Fraud Office (SFO)

  • grapow
  • 20/10/08 31/05/09
  • unspecified
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  • Thu, 26/03/2009 - 13:02

I am no expert here, but surely one of the biggest issues in this quite depressing list of mal-practice, is that there are several bodies and even 3 different countries involved not least several banks? Also given the fact that the origin lies clearly in IoM, then does the SFO have any jurisdiction over it?


A la Barclays....

  • follow_the_tao
  • 11/10/08 31/05/09
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  • Thu, 26/03/2009 - 19:27

Ah! the advantages of being offshore.


Manx Legal System and the Judiciary

  • Albert
  • 26/03/09 31/05/09
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  • Thu, 26/03/2009 - 16:53

TORPEDO has made some interesting points which are basically only scratching the surface. I will specifically comment on in a later post.

Most of you people have an awful lot to learn about the Manx Legal System. You will be shocked to the core at some of the tricks that these kiddies get up to and get away with.

Each deemster (High Court judge) was at one time working with the advocates (a solicitor on the Isle of Man who also appears in court and so has a dual role as a barrister) shoulder to shoulder prior to their judicial posting. A leopard does not change its spots. The deemsters are indeed a veritable part of the thriving Manx legal Industry. An Industry is what it is (80,000 people on the Isle of Man, approximately 200 advocates. . . ) and when some of these clowns charge MANY hundreds of pounds per hour for even domestic cases, then it is always so nice to have your old pal on the bench scratching your back for you.


Manx Legal Sysytem and the Judiciary

  • brianbrasil1
  • 17/11/08 n/a (free)
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  • Thu, 26/03/2009 - 18:15

It may be true that Manx judges were previously advocates in the Manx courts - but this is the identical situation to England whose judges are virtually all former barristers. It may or may not be satisfactory, but the IoM is no worse than England in this respect


Difference

  • Done like a Kipper
  • 10/10/08 n/a (free)
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  • Thu, 26/03/2009 - 23:49

However the judiciary in England and Wales come from a pool of many millions of people, in the IOM it's circa 80,000. Spot the difference??


brianbrasil1 makes a valid

  • Albert
  • 26/03/09 31/05/09
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  • Fri, 27/03/2009 - 01:08

brianbrasil1 makes a valid point of course. But the Island really is a very small place. The checks and balances quite simply are not capable of being in place (I think you all know that much now anyway) and are certainly not what you would expect from a country claiming some sort of moral and righteous principles in the world.

There have been one or two quite recent legal cases that will demonstrate that the Island is not capable of running its own affairs in a way that any decent western society would consider reasonable or just.

That is another matter maybe, but please don't assume that because a case is being dealt with in Court, then necessarily there is a chance of justice.

We do things differently over here......

Just beware.


From original post by

  • Albert
  • 26/03/09 31/05/09
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  • Fri, 27/03/2009 - 14:40

From original post by TORPEDO

" 13. The Deputy Deemster hearing the case in the Isle of Man is a relative of the Attorney General. (I have heard they are brothers, but cannot obtain confirmation). "

They are brothers and were at one time Directors of advocates firm Dickinson Cruickshank.

Deputy Deemster Corlett, Andrew Thomas Kaneen
Son of William Thomas Kaneen Corlett, Ballasalla

Attorney General Corlett, William John Howarth
Son of William Thomas Kaneen Corlett, Ballasalla

But don't worry, this is all quite normal for the Isle of Man.


Thanks Albert. Have found

  • TORPEDO
  • 04/11/08 31/05/09
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  • Mon, 30/03/2009 - 11:56

Thanks Albert. Have found biographical info on AG from reliable source. Can you point me to a reliable source for info on DD ?

Thanks


When I said "But don't

  • Albert
  • 26/03/09 31/05/09
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  • Mon, 30/03/2009 - 21:55

When I said "But don't worry, this is all quite normal for the Isle of Man" I was being ironic.

"Manx Justice is the best in the World" but that cry usually only comes from those within the very lucrative Manx Legal Industry itself.

Isle of Man Newspapers re Deputy Deemster post:
http://www.iomtoday.co.im/news/Corlett-takes-over-as-deputy.3070538.jp
Not too useful but a flavour of the kind of backslapping we have to put up with.

A bit about the Judiciary pay:
http://www.iomtoday.co.im/news/Massive-pay-rises-for-judiciary.4072338.jp
A fraction of these are morally decent.

Both chaps were born on the 25th March.
AG 1950,
DD 1959

Can't say a lot more.

Not unless you contact me direct.