£81m frozen: the CPS’s first Unexplained Wealth Order

The Crown Prosecution Service (CPS) has secured its first Unexplained Wealth Order (UWO) and Interim Freezing Order over a London property portfolio valued at more than £81 million. The High Court granted the orders based on suspicion regarding the source of funds used to acquire 85 properties across central and south London. The properties are now frozen on an interim basis whilst the investigation led by the CPS’s specialist asset recovery unit progresses. 

This enforcement action illustrates how UK authorities beyond the National Crime Agency are increasingly using civil recovery powers to target assets suspected to have been obtained unlawfully without the need for a criminal conviction. This development reflects the recent uptick in the use of these orders and demonstrates that the amended cost provisions introduced by section 362U POCA have resulted in an increased appetite amongst law enforcement agencies to use these powers. A UWO is an important investigative tool which shifts the burden to the respondents to explain how they were able to acquire assets that their known sources of legitimate income would have been insufficient to obtain. This type of order is particularly useful in cases where the respondents are outside the jurisdiction and therefore outside the ambit of other investigative orders.

In this case, a UWO was made against a Chinese national and associated UK companies, requiring them (within 3 months) to provide a detailed explanation of the source of the funds used to acquire the relevant properties and to demonstrate that those funds were derived from legitimate sources. If the respondents fail to comply with the UWO requirements without reasonable excuse, the rebuttable presumption under section 362C POCA that the property is recoverable will be triggered. This can bolster the case significantly when moving forward with a Property Freezing Order under section 245A POCA and ultimately a civil recovery claim under Part 5 of POCA. 

We will be following the developments in this case and the CPS’s evolving asset recovery strategy, building on its strength in recovering funds using Confiscation Orders (£478 million recovered 2020-2025) and increasing capability in civil asset recovery, noting in particular its ongoing headline-grabbing work on the BitQueen case, working with the Metropolitan Police’s Economic Crime Team and the National Crime Agency. 

At Burges Salmon, we specialise in navigating the complex terrain of civil fraud and asset recovery. Our team advises on the legal, technical and strategic aspects of investigating, freezing and recovering property including supporting clients with UWOs. We provide tailored guidance to support clients through asset recovery processes and achieve robust, effective outcomes that ultimately result in assets being recovered or forfeited.

If you would like to discuss any issues or themes arising from this development, please contact Michael Ward or Rhiannon Price.

This article was co-authored by Rhiannon Price (Director), Jess King (Solicitor) and Jamie Howarth (Trainee Solicitor) in the Firm’s Dispute Resolution department.