Read on for the latest news and updates in bribery and corruption; fraud; environmental and health and safety and more...

Bribery and Corruption

Bribery trial against Ex-Ecuadorean President commences

On Monday a trial commenced against the former President of Ecuador Rafael Correa and 20 other high-profile politicians and business leaders, accused of operating a multimillion-dollar bribery scheme. Mr Correa is alleged to have overseen a plot in which foreign and local businesses made cash payments to his political party, PAIS Alliance, in exchange for lucrative public contracts.

Chief Prosecutor Diana Salazar stated in her opening that eleven officials collectively took in about $7.7million purportedly to fund political activities such as publicity, parties, campaigns and private security. Mr Correa has likened the allegations to a political witch hunt.

Those found guilty face three to five years in jail.

AP News, 10 February 2020 

Money Laundering

Preston businessman deported from US following multi-million pound money-laundering convictions

Preston businessman, David Rae, pleaded guilty last April to two counts of international money-laundering and one count of conspiracy in New Jersey and South Carolina. The convictions concerned Mr Rae's involvement in a plot to defraud the federal healthcare programme Medicare.

Mr Rae was expected to receive a jail term of up to six years, but the Judge in the Federal District Court in Newark, New Jersey decided the ten months he had already served was sufficient and ordered him to be deported back to the UK. It has been reported that Mr Rae reached a plea agreement with the US court, involving the forfeit of up to £1.35m of criminal proceeds from the scam.

Mr Rae is also under investigation by the Serious Fraud Office in the UK for his alleged role in a £100m investment fraud in the Cayman Islands.

Lancashire Post, 13 February 2020 

Fraud

Former charity boss jailed for stealing £256,000 from its pension fund

Patrick McLarry, 71, who was previously appointed an MBE for his charity work, took money from Yateley Industries in Hampshire, a charity providing work for people with disabilities. Mr McLarry used the monies to buy a holiday home in France and pay off debts. The court heard that Mr McLarry set up a new company to manage the charity's pension fund, and facilitate his fraud. The charity's chief executive Linda Matthews said the charity had been "days away from potential closure" due to the stolen funds.

Mr McLarry has been sentenced to five years in prison.

BBC News, 10 February 2020

Cyber Crime

Profits of cyber-crime reached £2.7bn in 2019, FBI reports

The FBI has revealed that criminals netted £2.7bn from cyber-crimes reported to its internet crime complaint centre (IC3) in 2019. It received 467,361 complaints from individuals and businesses throughout the year, with losses totalling more than $54m.

IC3 noted that techniques used by cyber-criminals are becoming increasingly sophisticated, with the use of fake web and email addresses that make it hard for people to distinguish real from fake.  Phishing and extortion remaining the most popular ways of scamming people, and the vast majority of victims were over 60 years of age.

BBC News, 12 February 2020 

Sanctions

US Justice Department charges five people with conspiring to violate Iranian oil sanctions

The US Justice Department has announced that it has charged five people in Texas and New York with conspiring to violate a law on international commerce by arranging to buy sanctioned Iranian oil and sell it to a refinery in China via a Polish shell company.

If convicted, the defendants each face a maximum sentence of 25 years in prison and a fine of up to $1.25m.

Al Jazeera, 12 February 2020

EU imposes trade sanctions on Cambodia as a result of alleged human rights violations

The European Commission has moved to exclude Cambodia from the EU's "Everything But Arms" initiative, an EU scheme which offers trade preferences to a number of the world's poorest countries. The decision will result in the introduction of EU tariffs on sugar, travel goods, some footwear and selected garments, affecting approximately one billion euros of Cambodia's annual exports to the EU.

The decision comes as a result of a 12-month investigation by the EU into Cambodia's human rights record. EU foreign-policy chief Josep Borrell commented that "the European Union will not stand and watch as democracy is eroded, human rights curtailed and free debate silenced."

Yahoo News, 13 February 2020 

Environment

Wessex Water pays for polluting Dorset nature reserve

Wessex Water has offered the Environment Agency an enforcement undertaking after a sewer main burst and polluted a surface water ditch. The ditch and its wildlife were impacted by raising levels of ammonia and sewage fungus as a result of the leak. The Environment Agency accepted Wessex Water's undertaking to pay £25,000 to the Royal Society for the Protection of Birds. Separately, Wessex Water offered £10,000 to Dorset Wildlife Trust, carried out further actions to benefit an affected third party, and agreed to pay the Environment Agency's legal costs.

Gov.uk, 5 February 2020

Health & Safety

New Building Safety Regulator

The government has confirmed plans for a new Building Safety Regulator. The new regulator will be part of the Health and Safety Executive and will oversee the design, construction and occupation of high-risk buildings. Dame Judith Hackitt will chair a board to oversee the introduction of the new regulator. It will aim to raise building safety and performance standards and will oversee a more stringent regime for higher risk buildings.

Gov.uk, 20 January 2020

Construction materials company fined £400,000 due to employee injury

Saint-Gobin Construction Products UK Limited has been fined after an employee suffered serious injuries resulting in his left arm being amputated.  The employee was clearing rocks from a rock handling belt with another colleague when the machine was started and his arm was drawn into the rotating drum.

The Health and Safety Executive investigation found that there was no risk assessment or safe system of work in place for this task and the company was fined £400,000 plus costs of £12,945.62.

HSE, 7 February 2020

Gas fitter given custodial sentence for illegal works

Gas fitter Richard Goldthorpe has been given a jail sentence for carrying out gas works while unregistered. Mr Goldthorpe was first served with a Prohibition Notice by the Health and Safety Executive (HSE) in November 2014 banning him from carrying out gas work until he gained the necessary competence and registered with the Gas Safe Register. A HSE investigation found that he had undertaken works between 3 March 2018 and 22 March 2019 at seven addresses throughout England and his unsafe work had been featured on the BBC programme Watchdog.

Mr Goldthorpe pleaded guilty to offences under the Gas Safety (Installation and Use) Regulations 1998 and the Health and Safety at Work etc. Act 1974. Whilst on bail awaiting sentencing for these offences he then undertook further unregistered gas work. He pleaded guilty to two additional offences and was jailed for 16 months.  

HSE, 10 February 2020

South Wales Police fined after employee injured by electric cables

The incident occurred in October 2015 at Bridgend Police station when a civilian employee was installing computer data cables and received an electric shock after coming into contact with an exposed live 3 cord electrical cable in a ceiling void. He sustained damage to his heart in the incident. The Police Force had failed to ensure the electrical system was safe or that the ceiling void was a safe place of work.

South Wales Police Headquarters was found guilty of breaching section 2 (2) of the Health and Safety at Work etc. Act 1974 and fined £64,000 plus costs of £29,449.14.

HSE, 7 February 2020