Sam Healey and Lauren Bowkett successfully discharge three Account Freezing Orders (“AFO’s) on behalf of a client totalling over £175,000, after demonstrating that the Police had not reached their evidential burden in relation to the sums held in the company bank accounts.

The client’s problem: All three company accounts frozen:

• The client, a property maintenance company, instructed JMW to advise, assist and make representations in relation to the AFO that were made with limited notice being provided.  The Application’s which were made by the Police, and ordered by the Court, caused not only substantial burden on its director and the company, but impacted on their ability to trade.
• As well as the AFO’s, JMW was also instructed in relation to a criminal investigation into the company which was facing allegations of fraud and money laundering.
• In relation to the AFO’s, the Police had said they had intelligence that the money held in the company accounts was recoverable property and should be frozen.  The Court granted the initial applications and froze all company accounts for a period of 12 months, leading the client to seek the assistance of JMW in discharging the orders and defending the company and its director in criminal proceedings.

How JMW helped

The client instructed JMW in relation to both the civil and criminal investigation.  After detailed submissions and representations to the officers involved, the criminal investigation into the company was discontinued and the AFO’s discharged.   

We conducted a thorough investigation into the company, its previous Directors and the origin of the frozen funds, which the Police claimed that they had evidence to support that the funds were from fraudulent trading and money laundering.

We prepared a comprehensive application to discharge the AFO’s, which was only possible due to our expert understanding of the Proceeds of Crime Act 2002 and of the client’s specific situation.  The detailed application outlined numerous legal arguments and highlighted flaws in the Police investigation and evidence.  It was our view that having determined that the Police had not reached the appropriate burden of proof, that the AFO’s should be discharged.

We placed the Police on notice through representations and outlined that, should they not make an urgent application to discharge the AFO’s, we would then proceed with a formal application on our client’s behalf and seek a court order for costs on the basis of unreasonable conduct and business interruption.

Outcome: All three AFO’s discharged

Despite continued delays by the police, we are pleased that they accepted our submissions and applied to discharge the AFO’s voluntarily, at their own cost, which the Court granted.  Our client has received their frozen funds well in advance of the expiry of the original AFO’s which were put in place to last 12 months.

In securing expert legal representation from JMW, the client has avoided having to apply to the court for the release of the company accounts, a lengthy period with the accounts being frozen and a contested court hearing in relation to the frozen funds, which would ultimately have incurred further costs for the client.  This is important as there is no public funding or automatic entitlement for either party to receive their costs back in these proceedings. 

Lauren Bowkett has been commended by the client for her great work in this matter and securing the discharge of the three AFO’s without having to attend court.