Civil recovery orders: What you need to know

A civil recovery order (CRO) allows an authority to seize a person’s assets without first getting a criminal conviction against them.  It happens in situations where the authority believes that a person has got hold of the assets through unlawful means.

They might have issued an Unexplained Wealth Order already, and if they think that the person bought the assets with the proceeds of a crime, then the authority can apply for a CRO from the High Court to recover property.

Who can apply for a CRO?

The authorities that can apply to the High court for a CRO are:

·       The Serious Fraud Office (SFO)

·       The National Crime Agency (NCA) (main agency)

·       His Majesty’s Revenue and Customs (HMRC)

·       The Financial Conduct Authority (FCA)

·       Crown Prosecution Service (CPS)

What can be seized?

Anything that’s considered ‘recoverable property’ can be seized. If it’s obtained through unlawful conduct, then it can be seized. That includes things like money, houses, personal property, and cryptocurrency.

What is the procedure?

The authority will start proceedings in the High Court.

Usually the first step is to ask for a Property Freezing Order, which freezes the defendant’s assets. The defendant first becomes aware of the legal proceedings when they receive the PFO.

If you’ve been served with a PFO, then you should begin preparing your defence. This can be a lengthy process because you need to prove that that assets were obtained through legitimate means. That may require the skills of a forensic accountant, or tracking down a witness who can testify for you.

The final stage is a criminal trial in the High Court, where the defendant faces allegations that they were involved in some sort of crime (drug trafficking, tax evasion, mortgage fraud etc). The judge will decide whether or not to order the civil recovery of the assets.

At any stage during the investigation, it’s possible to negotiate with the authority to find a settlement.

What happens if the civil recovery order is granted?

If the court orders a CRO, then an interim receiver is appointed. Usually that’s somebody who works for the NCA (or other authority listed above). The property is detained and nobody is allowed to deal with it.

How a lawyer can help

If you’ve received a PFO, or you’re in legal proceedings about a civil recovery order, it’s best to instruct a lawyer as soon as possible. A lawyer will help to prepare your defence, and gather evidence to support your case. We can guide you through the court process so you feel supported during what can be a stressful time.

Please contact the team at Harewood Law on 0333 3448377 or info@harewoodlaw.com. If you are in Leeds, Bradford, Halifax, Wakefield, Huddersfield, or across West Yorkshire, we can arrange a conference for you and can discuss matters further.

Early engagement and a proactive approach to the case is always beneficial.