Private prosecutions for Fraud.

[johnfm]

If the actions of bankers, traders, pension fund managers etc is so clearly fraudulent to some, why hasn't there been any private prosecutions for fraud?

[Jasandjules]

Perhaps no-one has bothered to try as yet. Someone rich with the resources to do so might well do it if they've lost plenty of cash and is feeling like revenge... We can hope.

[davepoth]

Fraud is one of the most expensive crimes to try. You are looking at millions in court costs and legal fees. Bearing in mind that pretty much anyone with the sort of money to fund such a prosecution is likely to be friendly with a rich banker, you can see why it hasn't happened.

[Eric Mc]

It may yet happen in the US - a number of cases are being assembled. And they also allow the sort of class action that isn't permitted under UK civil law. This allows smaller and less well healed organisations to group together to sue as a joint plaintiff against a defendant.

If I was a UK bank I'd be very worried about their exposure to US civil action.

I've read John Grisham so I'm an expert on US legal matters

[Oversteer]

It's possible to bring a private criminal prosecution against someone however
what generally happens is that the Director of Public Prosecutions has the right
to take over the case and then offer no evidence. The idea being that if the CPS
haven't prosecuted someone they don't think there's enough evidence.

[Mojooo]

The biggest issue actually (apart fro mthe fact that financial cime is complex and woudl take a long tiem to prove) - is that when you are doing a private prosecution you do not have the power to request anyone to do anything (i.e get documents).

Therefore it may be easier to fund the Police to do a prosecution (which technically isn't allowed)

That said, you can do a proescution if the evidence has already been gathered or you can produce it.

[StevieBee]

davepoth said:

Fraud is one of the most expensive crimes to try. You are looking at millions in court costs and legal fees. Bearing in mind that pretty much anyone with the sort of money to fund such a prosecution is likely to be friendly with a rich banker, you can see why it hasn't happened.

Also one of the most difficult. The SFO failed on many occasions as juries simply didn't understand the complexities involved.

[plasticpig]

StevieBee said:

Also one of the most difficult. The SFO failed on many occasions as juries simply didn't understand the complexities involved.

The SFO is notoriously incompetent though.

[munky]

johnfm said:

If the actions of bankers, traders, pension fund managers etc is so clearly fraudulent to some, why hasn't there been any private prosecutions for fraud?

Why bother?

You don't need to prove fraud to bring a case for damages. I think. Not being a lawyer.

There are several civil suits in the early stages over LIBOR, but these can take years to play out. It will be fascinating to see how they do play out, given that LIBOR is just a guess.

Which pension fund managers have been accused of fraud by the way? I must have missed that.

[johnfm]

munky said:

johnfm said:

If the actions of bankers, traders, pension fund managers etc is so clearly fraudulent to some, why hasn't there been any private prosecutions for fraud?

Why bother?

You don't need to prove fraud to bring a case for damages. I think. Not being a lawyer.

There are several civil suits in the early stages over LIBOR, but these can take years to play out. It will be fascinating to see how they do play out, given that LIBOR is just a guess.

Which pension fund managers have been accused of fraud by the way? I must have missed that.

I'm probably thinking of the old Equitable Life debacle.

[munky]

johnfm said:

munky said:

johnfm said:

If the actions of bankers, traders, pension fund managers etc is so clearly fraudulent to some, why hasn't there been any private prosecutions for fraud?

Why bother?

You don't need to prove fraud to bring a case for damages. I think. Not being a lawyer.

There are several civil suits in the early stages over LIBOR, but these can take years to play out. It will be fascinating to see how they do play out, given that LIBOR is just a guess.

Which pension fund managers have been accused of fraud by the way? I must have missed that.

I'm probably thinking of the old Equitable Life debacle.

Aaah. Seems so long ago. That wasn't fraud though as I recall, just terrible mismanagement (or stupidty) allowing a large mismatch of assets and liabilities to accumulate.