The investigation of serious fraud is primarily the
responsibility of Special Compliance Office because such
investigations are difficult to fit into the programme of work in
local areas and the investigation may need to be directed towards
criminal proceedings.
Where serious fraud is suspected the case should be referred
promptly to Special Compliance Office without further enquiry by
correspondence or at meetings. See
SDLTM80270.
An informal initial approach is encouraged. Nothing should be
done to prejudice the Board’s freedom to choose between a
cash settlement or criminal prosecution or to render evidence
inadmissible in the courts.
Compliance caseworkers need to be able to recognise a case of
potential serious fraud. As the indications of serious fraud may
emerge for example, at interview, they must know how to proceed
without prejudicing the Board’s freedom or rendering evidence
inadmissible.
Although criminal proceedings by the Board are comparatively
rare, evidence may come to light during the course of a meeting,
which suggests that the Board might wish to consider criminal
proceedings. See
SDLTM80280.
In this situation a short adjournment to consult with Special
Compliance Office by telephone should be sought. If for any reason
consultation is not possible the meeting should be terminated. The
purchaser or the purchaser’s agent should be told that advice
needs to sought before proceeding further.
Once a case has been recognised as one where serious fraud
may have occurred, and reference to SCO is required, the greatest
care should be taken to avoid any reference to penalties or money
settlement. A compliance caseworker should immediately dissociate
themselves from any such reference made by the purchaser or their
advisors.
The formal caution must never be used on a purchaser.
