News from 2021

January 2021 ~ Large-scale fraud remains non-reportable!

“As the Law Enforcement Liaison Officer for the Association of British Investigators,” says IPFGB’s Dick Smith, “ I am often called on to report major crime to the authorities. This mostly occurs where a professional investigator has become aware of serious crime which their client wishes to be officially dealt with and offenders brought to book. To this end, I am blessed with police contacts; officers whose dedication to ‘getting the job done’ cannot be faulted. Nevertheless, they too come up against a system which for many years now, simply fails to function!

“In October 2020, I referred a major fraud to a high-ranking London contact; complex corporate crime, damaging to both the tax systems of all EU countries and individual workers’ pension schemes alike. Nothing new there then! The litany of allegations, pointing to traceable culprits, with the guarantee of witness testimony, encompassed a multitude of facets. And there, of course, lay the problem . . . the charges revealed an array of institutions as victims, spread across far too many jurisdictions. For two months, it was punted around at the highest levels within law enforcement, yet not one agency in this country, nor in the EU, was willing to investigate. None would risk a drain on their finances by shouldering the responsibility. There was no mechanism, and importantly no budget, for joining forces to engage. So, what was the ‘unofficial’ advice? ‘Blow the whistle. Go to the press and lay it on the doorstep of the government.’”

“Chris Greany of Templar Executives is a former police counter-fraud investigator and has long been critical of the Action Fraud system. He reports {Professional Security – Jan 2021 } what all we former cops know; that police forces have ‘completely forgotten’ how to investigate fraud. He admits he has given up on a £10m cross-jurisdictional global fraud despite there being a bank’s evidence available. The common ‘lack-of-resources’ response from the police is that business can afford to take its own action against criminals. So, if we accept the police view that commerce is fair game for the crooks, what then is the excuse for failing to investigate when public money is being diverted?

“Perhaps the problem is that, in an effort to plug the ever-increasing gaps in countering crime, too many agencies have been set up. When I became a police officer, [in an era when the service was lazy, unethical, and/or corrupt, as we are constantly brainwashed into believing], if a crime were committed, it was only the police who could receive the report and we were duty-bound to investigate and prosecute. If a crime report was ‘cuffed’ you risked being subjected to a rigid discipline procedure. To cry, ‘I don’t have the resources’ or, ‘It’s not my job,’ would have been met at best with derision, or accusations of subversion at worse.

“Crime was also rife then and terrorism even more commonplace; so let’s dispel any myths before they are submitted. But it was not until the nineties that we saw a change which started the rot. For the first time, there was politicisation of the police. The introduction of KPIs and ‘control by budget’ was introduced by the Home Office, obliging Chief Officers to prioritise. They were forced into abrogating their responsibilities in combatting certain types of crime. One such crime, exacerbated by the parallel emergence of the cyber-age, was fraud, which required investigative expertise and was particularly resource-hungry in relation to man-hours. It became easy, indeed was encouraged, for those Chief Officers to disband their Fraud Squads. In the vacuum which followed, weird, wonderful [and cheap] Federal-style outfits were invented, all to a blaze of publicity, massively under-funded, and mostly short-lived. But the mould had been broken and a full circle developed. The more crime the police refused to handle; the less money became available. As crime levels rose, and detection fell, the police were financially punished. If either the public or commerce tried to report fraud to the police, it was now de rigueur for officers to respond, ‘Not my remit, chief. Go somewhere else!’

“As an example, how many of us have actually ever heard of the Counter-Fraud & Investigations Service; a branch of the Government Internal Audit Agency? It was set up in 2016 and has recently proudly announced that it has so far ‘detected and prevented £4m worth of fraud.’ £4m in four years; at what cost, I wonder? And at the same time Mr Greaney’s single £10m case, or our tax and pensions fraud which dwarfs that almost into insignificance, don’t even warrant scrutiny!

“Graeme Biggar, the Director General of the National Economic Crime Centre, claims that not every crime can be investigated because police are ‘going after the big hitters.’ Really? The evidence and ‘inside knowledge’ suggests very much otherwise.

“And there it is. Too many agencies, all with their fancy titles, none actually working in unison, and none biting the bullet for fear of the financial implication on their largely irrelevant and redundant territories.

“Reverting to that recent failed referral in London, some might consider that whilst taking the King’s shilling and yet refusing to do one’s duty is a form of corruption. John Penrose MP is the appointed ‘anti-corruption champion’. He is credited with having a grasp of the situation and quoted as saying, ‘No politician wants to be vulnerable to corruption, or even inefficiency with the public purse.’ He will no doubt have his work cut out addressing the billions lost to fraudulent bounce-back-loan and furlough schemes which we know have been prevalent through the pandemic. Nevertheless, we are currently endeavouring to get our friends in the national media to knock loudly at his door and ask some very pertinent questions. Watch this space!”