Guernsey’s seized asset fund is getting a US$15million boost after a decision was made in a long running court case.
The money at the centre of the dispute was held in a Guernsey based Royal Bank of Canada account that had been opened in 1995.
The fund was controlled by Fidelity Management Ltd – a company originally incorporated in the Turks and Caicos Islands by an American lawyer who was known to use several different names.
The man at the centre of it all is Frank Laport who died in 2005, having previously been investigated by the US Internal Revenue Service.
Following his death, the executors of his will tried to move the $14.4m dollars in the local RBC account to a Swiss-based account. That move was refused by Guernsey’s Financial Intelligence Unit who instead applied to have the account frozen, believing that the money may have come from illegal activities.
Having been at the centre of numerous court hearings in the intervening 20 years, the Guernsey Court of Appeal has now ordered the forfeiture of the money.
The Law Officers of the Crown said the landmark judgment was based on evidence showing that “the opening of the Guernsey account was linked to a pattern of criminality across several jurisdictions”.
This included Mr Laport’s use of a forged driving licence and a false passport – including Canadian ID used when he acted under a different name.
The Law Officers successfully argued that “this gave rise to a strong inference that the funds were part of a criminal enterprise which had not been displaced by any credible explanation or evidence to the contrary”.
His Majesty’s Procureur Megan Pullum K.C. welcomed the decision of the Court of Appeal.
“This case demonstrates Guernsey’s commitment to disrupting criminal activity through the seizure of the proceeds of crime, and the decision of the Court of Appeal confirms that Guernsey’s legal framework strikes the right balance between robustness and respect for human rights,” she said.
“I would like to thank everyone involved for their hard work and commitment.”
The Director of the Economic and Financial Crime Bureau, Phil Hunkin, said staff worked closely with the Law Officers in bringing the matter to court.
“This outcome reflects the skill and professionalism of the EFCB’s Asset Recovery Team, who conducted a complex and lengthy investigation over several years. The forfeiture of more than US$15 million demonstrates our commitment to identifying, freezing, and ultimately recovering the proceeds of crime, and sends a clear message that Guernsey is not a haven for illicit funds.”
In accordance with the relevant legislation, the funds have been transferred by the bank to the States of Guernsey, for the benefit of the Seized Asset Fund.
Money within the Seized Asset Fund is managed by a board. It is often used by Home Affairs which has responsibility for law and order in Guernsey including policing and the courts.
Money from the Seized Asset Fund has previously been used to pay for new facilities including Marie Randall House which is the base for the island’s Financial Law Enforcement services.
