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Tainted gifts are one of the most misunderstood and costly parts of the Proceeds of Crime Act 2002 (POCA). Many clients come to us believing that a gift made years ago, or a transfer between family members, is beyond the reach of the authorities. Unfortunately, POCA tells a very different story.
When Daniel bought his daughter a car for her 21st birthday, he thought he was simply being a proud father. The purchase was quick, celebratory, and he believed entirely harmless.
Two years later, Daniel found himself the subject of a financial investigation connected to alleged fraudulent trading. As part of the case, the prosecution sought a Confiscation Order, aiming to recover what they believed represented the proceeds of criminal conduct.
And that’s when the birthday present came back to haunt him.
Under POCA, investigators can trace assets that have been given away, even long before an arrest. These are known as “tainted gifts.” If the prosecution can show that the gift was made at a time when the defendant had benefited from criminal conduct, the recipient may be required to return it, or the defendant may face an increased financial order to account for it.
Daniel’s daughter suddenly found herself drawn into proceedings. The car, bought in good faith, was now treated as a relinquished asset capable of enforcement. She wasn’t accused of wrongdoing, yet she could still lose the gift her father gave her.
Our team stepped in. Through detailed financial analysis and strong representation, we demonstrated that the funds used to buy the car pre-dated the alleged offending period. This allowed us to successfully challenge its classification as a tainted gift.
The car stayed. The order was reduced. And Daniel’s daughter was spared a deeply stressful and unfair financial blow.
POCA’s tainted gift provisions are powerful. They allow enforcement agencies to:
Treat gifts as recoverable assets
Reach into transactions made years before a conviction
Require innocent recipients to surrender items or funds
Dramatically increase the value of a confiscation order
Even the most ordinary gift—a holiday, jewellery, or money for university—can be scrutinised.
Taylor Rose specialises in:
Challenging tainted gift allegations
Tracing legitimate sources of funds
Negotiating reductions in confiscation orders
Protecting innocent third parties from being swept into proceedings
Leading this expertise is George Kampanella, Head of Business Crime and Regulatory, who brings over 30 years of specialist experience in defending against complex financial and regulatory allegations. George has a long-standing track record of achieving outstanding results, from dismantling tainted gift claims to significantly reducing high-value confiscation orders. His strategic insight, meticulous preparation, and relentless commitment to protecting clients ensure that you have one of the most accomplished practitioners in the field fighting in your corner.
If you or someone you know is facing a POCA investigation, early expert intervention is crucial and with George’s experience at the forefront, you can be confident your case is in the strongest possible hands.
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