FRAUD AND ASSETS RECOVERY

Many fraud cases involve complex corporate structures, incorporated in various jurisdictions some of which might cause obstacles or create problems for victims.

Cyprus Courts, have jurisdiction to assist victims of fraud, in the recovery of stolen assets, by inter alia granting the following interim relief:

 

(A) Issuing freezing orders, to block assets held by the wrongdoers within the jurisdiction.

 

(B) Issuing the so called “Chambra type” freezing orders, blocking assets, held by a third party, when there is prima facie evidence that, such assets are beneficially owned by the wrongdoers.

 

(C) Issuing discovery orders or Norwich Pharmakal orders against third parties (i.e. Banks etc.) for the discovery of information or documents to assist the victims of fraud to:

 

(i) To trace their assets;
(ii) To identify the wrongdoers;
(iii) To plead their case; and
(iv) To prove their case.

 

(D) Issuing the so called “gagging orders”, to preclude any party served with freezing orders or discovery orders to alert the wrongdoers, about the legal steps taken by the victims in Cyprus.

 

(E) Issuing freezing orders blocking assets of legal entities affiliated or owned or controlled by the wrongdoers.

 

(F) Issuing orders against the wrongdoers, or their agents – (provided that there is an in personam jurisdiction of Cyprus Courts over them) - to disclose on oath, the value and location of the assets, which are legally or beneficially owned by them.

 

Tracing has been used in Cyprus as mechanism to provide recompense to victims of fraud.

 

Tracing refers to the process, whereby assets, which in equity belong to another person, or may be said to be impressed by a constructive trust in another’s favour, may be traced by their beneficial owner, from their point of departure, through to their current location.

It provides an answer, to the question of who, is the true owner of the assets – if they have been misappropriated, or lost due to some form of wrongdoing.

 

Due to the fact, that tracing is an equitable remedy the remedy, it is subject to the maxims of equity. These maxims, ensure that those who seek the assistance of the Courts of equity, are themselves, deserving of such an assistance.

 

Except, from the legal steps, which are available to be taken by a victim of fraud, before Cyprus Courts, there is also available the mechanism of reporting such fraud, to the Money Laundering Unit (“MOKAS”) of the office of the Attorney General of the Republic, or to the Cyprus Police (Financial Crime Bureau), in order to request the obtaining of freezing orders etc., on the basis of inter alia the provisions of the Money Laundering Legislation, of the Republic of Cyprus.

 

 

 

For further information on this topic please contact

Mr. Soteris Pittasspittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)

 

 

The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.

 

PUBLICATIONS 2010

Arbitration in Austria by Dr. Erhard Böhm
13 Dec 2011 17:36

LEGAL FRAMEWORK AND COURTS
• Arbitration in Austria has a remarkable tradition. The first arbit [ ... ]

read more
CYPRUS COURTS & PROCEDURE
09 Dec 2011 23:38

  1. Court System   What is the structure of the civil court system? There are two tiers of co [ ... ]

read more
MINORITY SHAREHOLDERS PROTECTION IN CYPRUS – REMED...
06 Dec 2011 22:43

There is no easy solution, to the problem, which follows from the principle of majority rule, in Com [ ... ]

read more
FRAUD AND ASSETS RECOVERY
06 Dec 2011 17:33

Many fraud cases involve complex corporate structures, incorporated in various jurisdictions some of [ ... ]

read more
Litigation
30 Nov 2011 22:31

  Contributed by Soteris Pittas of SOTERIS PITTAS & CO LLC December 28th, 2009   By a rece [ ... ]

read more
Jurisdiction of Cyprus Courts to issue Interim Inj...
30 Nov 2011 22:06

INTRODUCTION   Cyprus Courts, have jurisdiction to issue any interim order, in all cases, in whic [ ... ]

read more
EU Regulation 44/2001 as a Machinery to pursue leg...
30 Nov 2011 22:03

Due to the accession of the Republic of Cyprus in the European Community (“EU”), Cyprus is bound [ ... ]

read more
Lawyers / Client Confidentiality
30 Nov 2011 22:01

  The foundation of the relationship between a lawyer and his Client, in the effective representat [ ... ]

read more
ВОЗМОЖНЫЕ КОНФЛИКТЫ МЕЖДУ АКЦИОНЕРНЫМИ СОГЛАШЕНИЯМ...
30 Nov 2011 21:58

Очень часто бизнесмены, создавая совместные предприят [ ... ]

read more
МОСКОВСКИЙ БИЗНЕС ЖУРНАЛ
30 Nov 2011 17:38


Июль-Август 2007 № 14(123)
Страницы 52-56
В чем польза трастов [ ... ]

read more
Litigation - Cyprus
26 Nov 2011 22:32

Contributed by Soteris Pittas of SOTERIS PITTAS & CO LLC   Anti-Suit Injunctions December 28 [ ... ]

read more
Memorandum on International Collective Investment ...
26 Nov 2011 22:24

OPEN-ENDED UNDERTAKINGS FOR COLLECTIVE INVESTMENT IN TRANSFERABLE SECURITIES (“UCITS”)
1.1 UC [ ... ]

read more
Arbitration
25 Nov 2011 22:18

INTERNATIONAL MULTILATERAL CONVENTIONS 1. Is your country a contracting state to the New York Conv [ ... ]

read more
Derivative Actions in the Republic of Cyprus
20 Nov 2011 22:11

INTRODUCTION   Cyprus, has adopted the Anglo-Saxon legal system which allows most of English case [ ... ]

read more
Enforcement of Foreign Arbitral Award under New Yo...
16 Nov 2011 22:14

ENFORCEMENT OF FOREIGN ARBITRAL AWARD UNDER NEW YORK CONVENTION
Contributed by Soteris Pittas of S [ ... ]

read more
An Applicant cannot abuse the machinery of the Mar...
22 Sep 2011 22:36

Contributed by Soteris Pittas of SOTERIS PITTAS & CO LLC September 23rd, 2010   In a recent  [ ... ]

read more
More Publications 2010

Subscribe to our Publications

Image
We are dedicated to providing our clients with outstanding, highly personalized, legal representation.
Chrysanthou Mylona 10 
3030 - Limassol, Cyprus
© Soteris Pittas & Co LLC. All Rights Reserved.
Image