Legal News

Labour Shadow Justice Secretary Sadiq Khan is calling for an overhaul of the system under which the profits of illegal activity are seized from major criminals.

A report has revealed that convicted criminals who are millionaires as a result of their crimes still owe more than 80% of the monies which they should have repaid under confiscation orders.

The National Audit Office (NAO) report found failures in the effectiveness of confiscation orders which are used to seize the profits of crime from convicted criminals. It is thought a total of £920 million is still owed by major criminals who have been convicted.

Other offenders subject to confiscation orders owe a total of £500 million.

The NAO report says that the sanctions imposed on convicted criminals to seize back assets do not work – and even offenders who still owe large sums of money under confiscation orders are released from jail without having paid.

Mr Khan – who is Labour MP for Tooting in south London and the Shadow Minister for London – said that criminals are getting away with not paying the full price for their crimes and called this “simply wrong”.

Mr Khan is now calling for reforms to the system of using confiscation orders to recoup the profits of crime.

“The government needs to act swiftly and order a root-and-branch review across key departments and agencies involved,” said Mr Khan.

Home Secretary Theresa May has pledged longer “default” sentences for convicted criminals who do not repay the proceeds of crime under confiscation orders.

However, Mr Khan says that lack of expertise among law enforcement officers working on such cases is one of the reasons for the failures in confiscation orders – including failures in acting quickly to apply restraint orders which prevent convicted criminals from disposing of their assets.

Mr Khan also criticised the standard of computer systems used by departments working on such cases.

The National Audit Office – which is the government’s spending watchdog –
agrees with Mr Khan and says the government needs to introduce tougher measures to ensure convicted criminals pay back what they owe under a confiscation order.

More than £100 million is spent each year on pursuing criminals subject to confiscation orders. Mr Khan said of the government’s failure to recoup monies owed:

“Unless they get a grip, criminals will continue to live off the financial fruits of their illegal actions.”

Confiscation Orders are usually made under the Proceeds of Crime Act 2002 (POCA), after the previous system involving the Drug Trafficking Act and Criminal Justice Act was merged.

Restraint orders prevent anyone subject to a confiscation order from disposing of their financial assets – including transferring them abroad.

Confiscation orders can be imposed for a wide range of criminal activities, including financial crimes such as tax avoidance or revenue offences.

Duncan Lewis Criminal Solicitors

Duncan Lewis criminal solicitors can advise on all criminal matters, including confiscation orders and restraint orders.

The Duncan Lewis crime department handles serious crime cases – such as murder, rape, child abuse and serious fraud – as well as road traffic offences, burglary, assault and sentencing appeals.

Duncan Lewis criminal solicitors are available 24/7 to visit police stations, prisons and courts.

For expert legal advice and representation at any stage of a criminal charge, contact Duncan Lewis criminal solicitors on 020 7923 4020.

For urgent criminal law advice or representation, call the Duncan Lewis Emergency Hotline on 0203 7275 2036.