Serious Organised Crime Agency v Sajjad & Ors

Where property is shown on the evidence to be the proceeds of fraud, it is recoverable property for the purposes of the Proceeds of Crime Act 2002. Under section 266(1), the court must make a recovery order and vest the property in the trustee once the statutory conditions are satisfied.

The Serious Organised Crime Agency sought civil recovery orders concerning money held in three bank accounts connected with members of the Sajjad family and associated companies. The accounts were subject to a property freezing order. The respondents did not appear or submit evidence. The court had to determine whether the balances were recoverable property and whether recovery orders should be made under the Proceeds of Crime Act 2002.

1. The court accepted the evidence establishing that the money in the three accounts represented the proceeds of a substantial VAT fraud and related fraudulent activity.
2. The sums were therefore recoverable property within sections 304 and 305 of the Proceeds of Crime Act 2002.
3. Under section 266(1), once the property was shown to be recoverable property and the relevant trustee formalities had been completed, the court was required to make a recovery order vesting the property in the trustee.
4. Three recovery orders were made in respect of the balances totalling £37,139. The judge noted that the outcome of this hearing was not admissible or binding in the separate forthcoming claims concerning other respondents and property.

Not stated in the judgment.