Commons Sense

House of Commons · Ministers' Questions

Fraud and Economic Crime: Prosecutions

Thursday 7 December 2023 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • The Crown Prosecution Service and the Serious Fraud Office are critical in prosecuting economic criminals.
  • The Solicitor General refutes claims that Conservative party members profited from the pandemic and emphasizes the Government's commitment to tackling economic crime.
  • The Solicitor General acknowledges the Justice Committee's report on fraud and the importance of cross-Government working on the issue.

Topics (select to filter)

Questions & Answers

Q1 Alex Cunningham Lab
Crime & Law Enforcement
Context

The question stems from concerns about the effectiveness of prosecuting fraud and economic crimes in the UK.

Question

What steps she is taking to help ensure effective prosecution of perpetrators of fraud and economic crime?

Answer from Michael Tomlinson

The Crown Prosecution Service and the Serious Fraud Office play a critical role in bringing economic criminals to justice. Just yesterday, the SFO announced a new investigation into fraud at AOG Technics Ltd, an aircraft parts supplier. That is the third new investigation launched since Nick Ephgrave became director of the SFO.

Partly answered

Not addressed: The answer did not provide specific steps being taken to ensure effective prosecution but highlighted recent investigations.

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Q2 Emma Lewell Lab South Shields
Economy Standards & Ethics
Context

The question addresses allegations of Conservative Party members profiting from pandemic-related opportunities, totalling £3.5 billion.

Question

Members of the Conservative party used the pandemic as an opportunity to make money for their friends and donors totalling £3.5 billion. When will they face justice?

Answer from Michael Tomlinson

I completely refute what the hon. Lady has said. I was looking forward to her question, but I was disappointed with the tone and substance of it. It is right to say that this Government are taking economic crime seriously, and fraud as well. I hope she has seen the new fraud strategy and, importantly, the report commissioned from Jonathan Fisher KC and his review on disclosure, which is due out next summer.

Not addressed: The answer did not address when justice would be served for those accused of profiting during the pandemic but shifted to general statements about fraud strategy and seriousness.

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Q3 Alex Cunningham Lab
Crime & Law Enforcement
Context

The question is based on criticisms of the Government's May 2021 fraud strategy, which lacks specific data and targets for business-related fraud.

Question

The Government's fraud strategy in May was billed as a comprehensive plan to tackle fraud against the public and business, so can the Attorney General explain why it contains no details of the number of offences suffered by business, no estimates of the losses that result, no targets in relation to business, no measures specific to business and not a single mention of the two biggest types of business fraud: procurement and payroll?

Answer from Michael Tomlinson

I am pleased that the hon. Gentleman has seen the full strategy—that is good news. I repeat my point about Jonathan Fisher KC, who has some important work to do. The hon. Gentleman will understand the volumes of crime and the volumes of digital material in the Serious Fraud Office. Jonathan Fisher is looking at that and at disclosure, and that will help businesses, help individuals, help the country and help the SFO to get on with its job.

Not addressed: The answer did not address why specific details were missing but shifted focus to the work of Jonathan Fisher KC.

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Q4 Bob Neill Con
Justice & Courts
Context

The question arises from concerns about fraud cases falling between the levels handled by the Serious Fraud Office and local police/CPS.

Question

The Solicitor General will recall that back in 2022 the Justice Committee produced a report on fraud in the justice system and the steps needed to improve the way we tackle it. I welcome a number of the changes that have been made, including the appointment of Mr Fisher KC, but will the Solicitor General reflect that one of the areas of concern is the type of fraud that is significant, causes real loss to businesses and individuals, but falls below the level dealt with by the SFO? There is real concern about the capacity and expertise within police forces and the Crown Prosecution Service to tackle that level of fraud, which falls into the gap. What is the fraud strategy and, more broadly, what are the Government going to do to empower the police and prosecuting authorities to tackle that sort of fraud?

Answer from Michael Tomlinson

I am grateful to the Chair of the Select Committee for his question. We take all his reports seriously, especially in this area. The CPS charges 76% of all fraud matters placed before it and has a conviction rate of more than 84%. I will commit to reflecting further on this matter.

Partly answered

Not addressed: The answer did not provide specific actions but highlighted existing capabilities and committed to reflection without concrete steps.

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Q5 Tim Loughton Con
Policing & Resources Crime & Law Enforcement
Context

The question stems from concerns about the lack of coordination between law enforcement, government departments, and social media companies to address fraud cases.

Question

The Solicitor General will be aware that the Home Affairs Committee has launched a review of fraud. Last week, we heard fascinating testimony on romance fraud from the victim of the Netflix series “The Tinder Swindler”. Remarkably in her case, she was treated as a perpetrator, investigated by the police and threatened with prosecution, even though she had been defrauded out of hundreds of thousands of pounds, and was led a merry dance by that chap, who is still doing what he did then. Is there not a case for bringing together Law Officers, Ministers, the police and the social media companies to ensure that we deal with the victims and the perpetrators accordingly?

Answer from Michael Tomlinson

My hon. Friend always raises serious points and brings to bear his expertise from the Home Affairs Committee. There is a case for cross-Government working. In my role as a Law Officer I work across all Departments, including the Home Office, and I look forward to continuing to do so.

Not addressed: The answer did not provide specifics on cooperation but referenced existing cross-departmental work without addressing the specific request.

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Q6 Nick Smith Lab Blaenau Gwent and Rhymney
Justice & Courts Standards & Ethics
Context

The question addresses concerns about the lack of FCA oversight for companies like Greensill Capital, leading to potential loopholes in fraud prevention.

Question

Greensill Capital is subject to criminal investigation in the UK, Switzerland and Germany. In Duncan Mavin's book “A Pyramid of Lies,” he subtitles the saga “The Prime Minister, the Banker and the Billion-Pound Scandal”. Amazingly, the company was not regulated by the Financial Conduct Authority. Will the Attorney General please look into this massive loophole? The scandal could have been stopped if the FCA had been able to step in earlier.

Answer from Michael Tomlinson

The hon. Gentleman will understand that the Attorney General and I superintend both the Crown Prosecution Service and the Serious Fraud Office, but that does not mean that we direct how they conduct investigations, and nor should we. It is right and proper that both organisations conduct their matters independently of Government, and that will continue.

Not addressed: The answer did not address regulatory oversight gaps but highlighted the independence of investigative bodies.

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Q7 Bob Blackman Con Harrow East
Crime & Law Enforcement Justice & Courts
Context

The question arises from concerns about the level at which fraud cases are investigated by police and CPS, affecting MPs' ability to refer cases.

Question

Further to the question by my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), what guidelines are given not only to the police but to the Crown Prosecution Service about the level at which fraud will be investigated? As chair of the all-party parliamentary group on personal banking and fairer financial services, I have referred a number of cases that have come to me to the police and to the CPS, and they say that they do not have the resources to investigate them. Could my hon. and learned Friend update the House on the position?

Answer from Michael Tomlinson

My hon. Friend is diligent in these matters, and he raises an issue that affects us all as constituency MPs, as we have all had cases brought to us that need to be investigated. I work very closely with both the police and the Home Office, and I will continue to do so.

Not addressed: The answer did not address current guidelines but highlighted ongoing cooperation without specifics.

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Q8 Karl Turner Ind Kingston upon Hull East
Justice & Courts Economy
Context

In January 2022, the Chancellor announced plans to recover money from individuals who exploited covid support schemes during the pandemic.

Question

What proportion of that money has been recovered so far? How many of those who took advantage have been sent to jail?

Answer from Michael Tomlinson

First, I warmly welcome the hon. Gentleman to his place or, rather, back to his place, as I understand that this is his third outing in the shadow ministerial team. It is pleasing to see his predecessor, the hon. Member for Hammersmith (Andy Slaughter), whose name is on the Order Paper. We look forward to his question. The shadow Minister will be interested to know that I recently visited the Insolvency Service, which is conducting investigations into the bounce back loan scheme and the like. We must remember that the covid lending schemes delivered just under £80 billion of finance in almost record time. It was called for from across the House and should be supported, but he is right that those who have committed fraud should be investigated.

Partly answered

Not addressed: The proportion of money recovered and the number of individuals sent to jail were not specified.

How: Welcoming The Hon. Gentleman, Acknowledging Investigations Into Bounce Back Loan Scheme

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