Stanford International Bank Limited (by its joint liquidators) (Respondent) v The Director of the Serious Fraud Office (Appellant)

Case summary

Case ID

UKSC/2010/0064

Parties

Appellant(s)

Stanford International Bank Limited (acting by its joint liquidators)

Respondent(s)

Director of the Serious Fraud Office

Issue

(1) Whether liquidators of an insolvent financial institution are persons “other than the defendant” for the purposes of Article 46(3)(a) of the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005. (2) Whether unsecured creditors have an interest in the assets of an insolvent financial institution for the purposes of Article 46(3)(a) of the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005, and are therefore entitled to be taken into account when a court is considering making a restraint order. (3) Whether Article 46(2)(b) of the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005 provides a legislative steer to the courts in the exercise of their discretion in making a restraint order. (4) Whether the Court of Appeal exercised its discretion rationally in making a new restraint order. (On a cross-appeal) (5) Whether an allegation of misrepresentation and material non-disclosure should be assessed by whether the information not disclosed was to be taken into account in deciding whether to grant relief without notice. (6) Whether the failure to inform the judge of the appointment of a receiver-manager in Antigua amounts to material non-disclosure. (7) Whether the test of dissipation is if there is a risk that the funds might be dissipated in frustration of the statutory scheme.

Facts

The Appellant is a bank which was incorporated in Antigua and Barbuda on 7 December 1990. It is the subject of allegations that it was involved in a fraudulent scheme, affecting some 27,000 investors, which collapsed in 2009. Proceedings were brought against the Appellant in the Texas District Court by the US Securities Exchange Commission on 16 February 2009. The Appellant was placed into liquidation by the High Court of Antigua and Barbuda on 15 April 2009. On 7 April 2009 the Respondent applied to HHJ Kramer QC for a restraint order under the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005, and the order was granted.

Date of issue

24 March 2010

Judgment details

Judgment date

15 February 2012

Neutral citation

[2012] UKSC 3

Judgment links

Appeal

Justices

Lord Phillips

Lord Kerr

Lord Sumption

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