INVOICE HIJACKING FRAUD – ENGLISH HIGH COURT ADOPTS PRACTICAL APPROACH TO ASSIST RECOVERY

On 16th October, Eversheds Sutherland published a briefing on a recent High Court case which it says is a useful case study and a welcome outcome.  World Proteins had paid some €2,000,000 to a fraudster, under the mistaken pretence that it was paying a genuine supplier that was chasing payment of genuine invoices and, after cancelling certain payments, World Proteins was out of pocket for €500,000.  World Proteins successfully applied for a freezing injunction over the bank account to which the payments were made – thus immediately preventing the fraudster from further dissipating remaining funds, and then set about recovering the funds in High Court proceedings.  The briefing said that the key to quickly recovering the funds is obtaining a declaration from the Court that the victim of the fraud has a proprietary interest in the funds held in the frozen bank account – that way the funds can be returned by the bank – but something that in the past courts were reluctant to do without a trial.

https://www.eversheds-sutherland.com/global/en/what/articles/index.page?ArticleID=en/Commercial_dispute_resolution/Invoice_hijacking_fraud_-_Court_adopts_practical_approach_to_assist_recovery

This blog is primarily for my own use, to keep informed and up to date. However, if you would like to say thank you (and perhaps help me get a new, better laptop when I am away…) you can “buy me a coffee” at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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