Fraud (Hansard, 2 March 1992)

§ 29. Mr. Flynn
To ask the Attorney-General if he has any proposals to change the prosecution procedures in cases of fraud.

§ The Attorney-General (Sir Patrick Mayhew)
No, Sir. Wherever they have been operating, persons whose dishonesty has infringed the criminal law, on the basis of reliable and admissible evidence, will continue to be prosecuted. If, on review, any procedural change is shown to be desirable, the Government will consider the steps that need to be taken.

§ Mr. Flynn
Is the Attorney-General aware that, while the West Bromwich building society and financial advisers have grown fat and rich by selling home income equity bonds, 14,000 pensioners face the prospect of losing their homes, including some of my constituents who were not advised that the bonds were dangerous? One pensioner, tragically, has taken his life because of them. Is it not fraud of the most cynical, wicked type that financial advisers are not telling elderly people that those bonds are dangerous and that they are likely to lose their homes within two years? What does the Attorney-General intend to do about that?

§ The Attorney-General
I am naturally extremely sorry to hear of the personal circumstances that the hon. Gentleman very properly brings to the attention of the House, but he will not expect me to prejudge any issue of criminality that may arise. If the hon. Gentleman believes that there is evidence of criminality, he should draw it to the attention of the police, if he has not done so already.

§ Mr. Tim Smith
Does my right hon. and learned Friend agree that, since it was established in 1988, the Serious Fraud Office, under the direction of Barbara Mills, has done an outstandingly good job and has brought a number 13 of successful prosecutions for fraud? Before we make any radical changes such as doing away with jury trials, should we not think very carefully indeed?

§ The Attorney-General
I am grateful to my hon. Friend. Recent comment has been disfigured by a good deal of misinformation. The Serious Fraud Office has been in operation for three years and has achieved a striking rate of success in serious and complex frauds. My hon. Friend is absolutely right in the tribute that he pays.

§ Mr. John Morris
Does the Attorney-General accept that there is concern about our procedures? Will the Lord Chancellor consider asking the Lord Chief Justice to establish a committee of judges and practitioners to propose reforms to be approved by a practice direction, and by legislation where necessary? Does the right hon. and learned Gentleman accept that while juries are unequalled in deciding dishonesty, the burden of lengthy trials is becoming unfair on jurors? Why are there such a multiplicity of counts, and sometimes of defendants, with long opening speeches and insufficient identification of the issues for the jury until nearly the end of a trial?

§ The Attorney-General
Obviously, my noble and learned Friend the Lord Chancellor will heed the right hon. and learned Gentleman's remarks. I am not sure about there being a multiplicity of counts. In the recently concluded County NatWest and Blue Arrow case, there was only one count—yet comment on it included the assertion that the Serious Fraud Office used a "scattergun approach". In Guinness 2, there were five counts. I believe that I am right in saying that in the most recent 20 cases, there have been at most 22 counts. Some of them have to be in the alternative, as the right hon. and learned Gentleman knows. Every effort is made to bring matters into clear focus.
Incidentally, I was interested to read in the Financial Times and other newspapers today that the foreman in the Guinness 2 trial of Mr. Seelig and Lord Spens said that the prosecution had made a good job of identifying the structure of that case.

§ Mr. John Marshall
Visitors to Westminster Hall are amazed at Warren Hastings' ability to survive a case which lasted seven years. Is there not a danger that modern cases go on too long and cover too wide an area? Is it not sometimes the judges who are overwhelmed by the evidence?

§ The Attorney-General
I am very sensitive to my hon. Friend's reference to Warren Hastings' because it was Edmund Burke, a kinsman of mine, who prosecuted him over that length of time. I agree with my hon. Friend that recent cases last far too long, and that a means must be found of securing quicker trials. In the County NatWest and Blue Arrow case, the time taken before the jury by the prosecution amounted to 27.5 per cent. of the total. At present, there is no means by which a judge can sufficiently control the length of time taken by a defendant, particularly—this was not the case with the County NatWest and Blue Arrow trial—one who is defending himself. We must find a quicker way of securing justice. That issue is not one on which the Government have made up their mind, and all suggestions will be sensibly considered.