3rd Annual Cross Border Litigation and
Asset Recovery Forum 2015,
Lagos, November 6, 2015
How criminal prosecutions can
be used to improve recovery
opportunities in civil fraud and
other economic cases
Prager Dreifuss AG
Zürich, Bern, Brüssel
[email protected]
www.prager-dreifuss.com
Mühlebachstrasse 6
CH-8008 Zürich
Tel: +41 44 254 55 55
Fax: +41 44 254 55 99
Schweizerhof-Passage 7
CH-3001 Bern
Tel: +41 31 327 54 54
Fax: +41 31 327 54 99
Square Ambiorix 45
B-1000 Bruxelles
Tel: +32 2 537 09 49
Fax: +32 2 537 21 16
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Returning illicit funds:
Proactive approach
• Strong Swiss anti-money laundering rules.
• Restitution is an important pillar of Swiss policy combating illicit
assets.
• Switzerland has restituted approx. USD 1.8 billion to foreign states.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Returning illicit funds:
• Peru (Montesinos): 2002 (USD 92 million);
• The Philippines (Marcos): 2003 (USD 684 million);
• Angola I: 2005 (USD 24 million);
• Kazachstan I: 2007 (USD 115 million),
• Mexico (Salinas): 2008 (USD 74 million);
• Kazachstan II: 2012 (USD 48 million)
• Angola II: 2012 (USD 43 million);
• Haiti (Duvalier): 2014 (USD 5,7 million); and
• Republic of Nigeria (Abacha): 2005: USD 700 million.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Swiss criminal proceedings:
How can they aid to improve asset recovery?
Swiss criminal law as an effective instrument to assist
in overseas economic crime cases
• Experienced state prosecutors.
• Tested court system.
• Reliable jurisprudence,
• Recognizable judgments.
• Supportive stance towards other countries.
• Effective instruments:
 Money Laundering Reporting Office (MROS),
 Data Protection Act access,
 Criminal procedural rights of victims.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Swiss Criminal Law:
The legal concept of a criminal organization
A new tool: Criminal Organisation
• Introduced into Criminal Code in 1994.
• crimes committed by mafia-type, highly
organized secret groups.
• Characteristics:
 Three or more members,
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Structure set up for undefined period of time
Allocation and exchangeability of duties,
No transparency,
Strict code of confidentiality,
Aim to commit serious crimes.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Swiss Criminal Law:
Advantages of proving the existence of a criminal
organization
• Legal presumption that all assets of a member of a criminal
organization are under control of organization and of an illicit nature.
• An incriminated member must prove the legitimate origin of the
assets (reversal of the burden of proof).
• No proof of link between assets in Switzerland and crimes abroad.
• Simplification of investigation and time gains.
• Public awareness (media) increases pressure on banks,
authorities and courts -> increased likelihood of findings.
• Wide and thorough investigations in many countries.
• Settlements with minor targets more likely.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Jurisprudence by Federal Tribunal:
Can a government can be a criminal organization?
• Concept successfully applied by the highest court in Switzerland in
the case of General Abacha in 2005.
• Provisional freezing of Abacha assets.
• The Federal Tribunal found that the persons around General Abacha
constituted a criminal organization.
• Defendants had the right to prove the legitimacy of the acquisition of
the assets.
• Presumption was not refuted by accused and funds were eventually
returned to Nigeria.
• Recent settlement regarding the funds in Luxembourg.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Coordination of criminal proceedings
Strategic considerations
Keeping things in focus
• Who takes responsibility where criminal investigations
are being pursued in several countries?
• Demonstrate how assets were stolen (modus operandi).
• Defence teams are well staffed, trained and have large financial
resources at their disposal – expect a tough fight.
• KISS (Keep It Straight and Simple) your case. The defence will
MILC the case (Make It Long and Complicated).
• Try to maintain the moral high ground.
• Apply pressure on all fronts simultaneously.
• Avoid changes in administration and in the case leading team.
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com
Thank you for your kind attention.
PRAGER DREIFUSS LTD
Prager Dreifuss AG • Zürich, Bern, Brüssel • www.prager-dreifuss.com