Katerina Iwai achieved a strong result for our client in Proceeds of Crime Act (POCA) proceedings at Croydon Crown Court.

Our client had originally been charged with three counts of fraud relating to the fraudulent application of COVID-related Bounce Back Loans, totalling £130k.

TheProsecution initially sought to recover £347,000, including tainted gifts. However, through detailed representations drafted by Katerina Iwai and a successful challenge by Ini Udom and Georgina Lane of 5SAH to the Prosecution’s case the defence secured a significant reduction.

The final available amount was agreed at £1, reflecting a fair and proportionate outcome for our client.

What is a “tainted gift”?

 

A “tainted gift” is something a person gives away — such as money, property, or other assets — that comes from the proceeds of crime.

If someone has gained money through illegal activity and then gives some of it to another person (for example, a family member or friend), the court can still treat the value of that gift as part of their available assets. This allows the court to include the value of those gifts when deciding how much money can be recovered under the Proceeds of Crime Act.

Example:

If a person uses money obtained through fraud to buy a car and later transfers ownership of that car to their partner as a gift, the court may treat the car as a tainted gift. Its value can still be included when calculating how much the person must repay under the Proceeds of Crime Act.

What is the “Benefit Figure”?

The Benefit Figure is the total amount the court decides a person has gained from criminal conduct.

It doesn’t just include money they still have — but it can include money or property they once had but no longer possess. For example, if someone made £200,000 through fraud but spent it all, the Benefit Figure is still £200,000.

This figure represents the total benefit they received from the offence, even if the money is no longer available.

What is the “Available Figure”?

The Available Figure is the amount the court decides the person can realistically pay back at the time of the confiscation hearing.

It’s based on the value of their current assets — such as money in bank accounts, property, cars, or other possessions.

For example, if someone’s Benefit Figure is £200,000, but they only have £50,000 worth of assets, the court may order them to repay £50,000 as their Available Figure.

If they later acquire more assets or money, the prosecution can apply to revisit the order to recover the remainder.