Serious Fraud Office - Dawn Raids… a New Era?

Legal proceedings, especially those involving the SFO, can be complex and protracted. Stay informed about the progress of the investigation and be prepared to adapt your strategy as needed. Regular communication with your legal team is key to navigating this challenging period.

The Serious Fraud Office (SFO) now under the command of it’s new Leader, is no doubt as eager as ever to investigate cases robustly, following its revamped approach to dawn raids. Yes, they still happen and when individuals least expect them. Any knock at the door at the crack of dawn, can be a shocking and daunting experience and can result in unimaginable stress and disruption to any business.

First and foremost, stay calm and get good, experienced advice. When panic sets in, people make poor decisions which can destroy a business and personal lives.

What does a raid without warning mean?

The SFO is tasked with investigating and prosecuting serious or complex fraud, bribery, and corruption, and a raid often indicates that your business or individual activities are under serious scrutiny.

Knowing how to respond effectively in the aftermath can make a significant difference in the outcome of the investigation. Consider my step-by-step guide on what to do after an SFO raid:

Stay Calm and Composed!

The first and most important thing is to remain calm and do not panic. The SFO conducts raids as part of its evidence-gathering process, but it doesn't necessarily mean you or your company are guilty. Panicking can lead to hasty decisions that may complicate your situation.

Co-operate with investigating officers, but Know Your Rights

During a raid, you are legally required to comply with the SFO's demands, including providing access to documents and digital devices. However, you also have rights:

• Legal Representation: You have the right to seek legal advice immediately. Ensure that you or your employees do not provide any statements or interviews without your Lawyer present.

• Search Warrant: Verify that the SFO officers have a valid search warrant. The warrant should outline the premises they are allowed to search and the items they are authorised to seize.

• Legal Professional Privilege Claims: Identify any documents or communications that may be subject to legal professional privilege (LPP). By way of example, correspondence between Solicitor & Client is confidential and subject to LPP. These should be flagged to the SFO officers, as they are typically exempt from seizure. Any seizure of such information could result in legal challenges and possibly the exclusion of any such evidence gathered. It is therefore important you identify such documents. One useful exercise is to keep legal papers separate from non-legal documents. Keeping a separate archive or filing system is key. The end result if this system is adopted, is limiting the amount of time the SFO conduct a search.

Get lawyers in to help you

Contact lawyers as a top priority. This is an area of law where having a specialist, experienced lawyer is important. Your lawyers will need to:

• Review the search warrant and ensure the SFO’s actions are within its scope. A floor plan readily accessible can assist in this task.

• Your legal team can advise you on how to interact with the SFO officers during the raid.

• Start preparing a response strategy, including protecting any privileged or sensitive information.

Document Everything

Keep a detailed record of the raid, including:

• The time the officers arrived and left.

• The names and badge numbers of the officers involved.

• A list of all documents, devices, and other items seized.

• Notes on the behaviour of the officers and any specific instructions given.

This documentation can be crucial for your legal defence later!

Internal Communications

After the raid, communicate with your employees. It’s essential to:

• Inform them of the situation without causing panic.

• Instruct them not to discuss the raid or the investigation externally, including on social media. You may need to refer them to any confidentiality policies in place.

• Assure them that the company is handling the situation with the appropriate and effective legal support.

Evaluate the Situation

Work with your legal team to assess the implications of the raid. This evaluation should include:

• Understanding the scope of the investigation.

• Identifying any immediate risks or potential liabilities.

• Planning the next steps in terms of compliance, cooperation, or defence.

Engage in Crisis Management

If the raid becomes public knowledge, you may need to manage the situation with external stakeholders, including clients, investors, and the media. A crisis management plan might involve:

• Preparing a public statement or press release.

• Designating a spokesperson.

• Ensuring consistent messaging across all channels.

Plan for the Investigation

The raid is often just the beginning of a lengthy and complex investigation. Your legal team will help you navigate the following:

• Responding to any follow-up requests for information from the SFO.

• Preparing for possible interviews or further questioning by the authorities under Police Caution.

• Developing a legal defence strategy, whether the aim is to co-operate fully or contest the allegations.

Review Compliance Practices

Even as the investigation unfolds, it is crucial to review and strengthen your organisations compliance practices. This can help:

• Mitigate any damage by showing a commitment to rectifying any issues.

• Prevent future incidents that could lead to further scrutiny by authorities.

Stay Informed and Adapt

An SFO raid is a serious matter and should be taken very seriously, but with the right approach, you can manage the situation effectively. By staying calm, cooperating within the bounds of your legal rights, and working closely with your legal advisors, you can protect your interests and steer through the investigation with as little disruption as possible.

Staying calm and co-operating within your legal rights, can also limit the exposure to the media that could follow. Remember, preparation and strategic planning are your best defences in such a scenario.

Please contact George Kampanella at our Carter Lane office on 020 3319 1198 or click here to read more about our White Collar Crime Services.