BARRY FAUDEMER

Jersey officer gives FBI speech

Det Insp Faudemer has been training with the FBI for 10 weeks
A Jersey police officer has been chosen to give a speech at the FBI headquarters in Washington.
The head of Jersey's financial Crimes Unit Detective Inspector Barry Faudemer has been training with the FBI in Virginia for the past 10 weeks.

He has been chosen from 260 officers from around the world to give a speech at the graduation ceremony in front of the director of the FBI.

He said it was a "great honour" to have been chosen by his peers.
'Important event'

Det Insp Faudemer has been studying counter terrorism and the financing of terrorism, together with cyber crime, at the FBI National Academy, in Quantico, Virginia.

Almost 300 senior and experienced police officers from across the US and 25 countries across the globe including China, Hong Kong and the Ukraine are attending the course.

Inspector Faudemer said: "This is an honour for me and the States of Jersey Police.

"About 1,000 people attend the graduation. I feel very privileged to be entrusted by my peers to represent them at this important event."

The residential course has included visits to the New York Police Department and the Philadelphia Police Department.


FROM STUART SYVRET'S BLOG 2009

Anonymous said...
Anyone know if DI Faudemer is the same Barry Faudemer now Head of Enforcement at the Jersey Financial Services Commission? Have you spoken to him Stuart, to find out what happened following the meeting?
Saturday, 21 March 2009 19:48:00 GMT

Anonymous said...
fond on google in piblic domain

Barry Faudemer Director, Enforcement Jersey Financial Services Commission.
14 - 18 Castle Street
St. Helier
Jersey JE4
8TP
Email: B.Faudemer@jerseyfsc.org ...
Saturday, 21 March 2009 21:14:00 GMT

STATES OF JERSEY POLICE

FBI visit for Jersey
19|11|2008
FBI’s perspective on Mortgage Fraud

RELEASED TO MEDIA ON WEDNESDAY 19 NOVEMBER 2008

Agents from the Federal Bureau of Investigation will be in Jersey on Friday 21st November 2008, delivering a presentation on ‘Mortgage Fraud’. The offer to receive this presentation has developed through Jersey’s ongoing involvement with enforcement agencies dedicated to work in targeting Money Laundering.

Detective Inspector Mark Coxshall outlined the importance for his work as head of the Joint Financial Crimes Unit who regularly need to draw upon the cooperation of their US colleagues. That link emanates through the FBI assistant Legal attaché to London, Mr Ron Monaco, who has worked and continues to work closely with Jersey authorities.

Detective Inspector Mark Coxshall said: ‘Money Laundering is an ongoing process whereby criminals constantly seek to find new ways to circumvent law enforcement. The work of my unit would be seriously hindered without the global cooperation it receives from colleagues who are involved in similar work. Our FBI colleagues are in regular contact with Financial Crimes Unit whereby their expertise offers a crucial investigative tool to our work here in Jersey.’

Ron Monaco has responsibility for the FBI's "White Collar Crime" programme throughout the UK to include the Channel Islands, and in Ireland. Last year the Bureau offered a presentation to Guernsey based on internal corruption and the subject matter of these ongoing training opportunities tend to reflect the current vulnerabilities presented by money launderers.

Ron Monaco said ‘By coordinating this visit we jointly learn, together with our law enforcement and regulatory partners and gain a clearer understanding of the scope and nature of mortgage fraud. We hope the presentations and dialogue will enhance our knowledge of both mortgage fraud and other related money laundering activities. We have worked cooperatively and productively with the States of Jersey Police and other police services in the UK for many years and highly value our close working relationship.’

The Joint Financial Crimes Unit also works closely with the Enforcement Division of the Jersey Financial Services Commission. Many investigations overlap and offer both criminal and regulatory issues that need to be dealt with. That joint working comes to the fore when looking to obtain training opportunities with clear benefits to both areas of work.

Director of the Commission’s Enforcement Division, and formally Head of the Joint Financial Crimes Unit, Mr Barry Faudemer is himself a graduate of the FBI National Academy. Mr Faudemer added:

‘The Commission and the financial services industry are always on alert for new trends and developments in the area of financial crime. Liaison with staff from the FBI provides an opportunity to stay ahead of the curve and develop a better understanding of how criminals are turning to mortgage fraud as a source of income.’

Southport Forums - Investigation Causing Tempers to Flair
www.southportforums.com/forums/printthread.php?t=50383858You +1'd this publicly. Undo
29 posts - 1 author - Last post: 3 Apr 2008
I'll be writing to Jack Straw in the next 24 hours. ..... I were to reveal that Father Barry of the Rosminian Order and Brother O'Hanlon of the .... after a meeting with Dl Faudemer in which DI Faudemer had informed him ...

ANATOMY OF A FRAUD CASE - SERIOUS FRAUD OFFICE ANNUAL REPORT FROM 5TH APRIL 2006 TO 4TH APRIL 2007

The searches
At the very start of a serious fraud case noone
who has been close to the events is
completely above suspicion, but nor are there
sufficient resources to target everyone.
“Initially almost every Izodia director, before
and after the transfer, and a host of other
characters might reasonably have had some
degree of suspicion attached to them,”
explains DI Edmondson. “But we can’t search
everywhere. We must focus on the locations
and people that look potentially most fruitful
and/or where evidence might be at the
greatest risk. Given Sir Anthony Jolliffe’s initial
complaint and the RBSI reports about forged
documents, as well as everything we already
knew about Dr. Smith from his previous
conviction, it was clear that he must be the
focus of our immediate interest.”
Early on 16 December 2002 Smith’s
principal residence in Jersey and his company
offices in London and Jersey were all searched
simultaneously.
In Jersey, Smith was at home. His wife,
Gail Cochrane, seemed perfectly composed as
she called to her husband: “Gerald. The
police are here again.” Smith complained to
Detective Inspector Faudemer of the Jersey
police that he was needlessly jeopardising
SFO Annual Report 2006/07 24
Kevin McDonald, principal financial investigator
worldwide businesses by investigating
nothing more than a properly-minuted intercompany
loan, but he failed to produce any
evidence to support his claim. As the search
progressed gardeners arrived to work in the
extensive grounds and workmen continued to
install flat screen TVs in all of the bedrooms.
There were very obvious signs of wealth
everywhere. In one room a large number of
paintings were stored, stacked against the
walls like so many racked posters.
In London police officers and SFO
investigators waited for staff to arrive at Orb’s
Mayfair offices. The SFO principal financial
investigator Kevin McDonald, who worked on
the case throughout, was there: “Our
intention is always to take only the material
we need. We don’t want to disrupt the
continuing business. Even our IT specialists
take only ‘images’ of hard drives and leave
the machines themselves intact and in situ so
that staff can continue to use them.”
As the afternoon wore on someone
brought in a copy of the Evening Standard;
the searches were already front page news.
Detective Constable Nick Bell also worked
on the Izodia case from start to finish. He
spent most of that first day sitting at Gerald
Smith’s desk picking carefully though the files.
“The SFO procedures were an eye-opener for
many of us,” he recalls. “Very careful and
methodical. The relevance of every item
judged there and then. Bagging a massive
amount of items and doing it at the scene.
Operating to SFO procedures made it a long
day – slow but very thorough. By the end we
were confident we hadn’t missed a thing.”
Back at Elm House seized material was
registered and scanned into the SFO’s
document tracking system. “Scrupulous
attention to detail is immensely timeconsuming,
especially at this early stage, but
it pays huge dividends later,” says Philip
Blakebrough, now an assistant director at the
SFO but the Izodia case controller for most of
the investigation phase. “On the final day of
a case we can quickly put our hands on a
piece of evidence, along with everything else
we know about it and every other document
that might be linked to it, as easily as we
could on the first.”
While some investigators sifted, sorted
and assessed the seized material, others
began gathering from banks, advisors,
directors and employees important
documents that might not otherwise come to
them through the main searches. (Section 2
notices can be used to compel a source to
provide evidence but they are used only
where material is at risk or where the source
wishes to be protected against accusations of
breach of confidentiality.)
Nor was there any delay in starting to
trace where Izodia’s money might have gone.
Depending on the jurisdictions involved, this
25 SFO Annual Report 2006/07
“Initially almost every Izodia director, before and after
the transfer, and a host of other characters might
reasonably have had some degree of suspicion
attached to them”
Left to right: DC Nick Bell, DS Phil Rudd and DI Dave Edmondson
Anatomy of a fraud case 5
can be a trying and time-consuming job.
Jersey uses a system similar to the mainland’s
Section 2 notices and these were used to
gather information from Orb’s bankers. Here
too the SFO wanted to seize only what was
likely to be useful. It also wanted to be
sensitive to the bank’s own continuing
investigations so, with his case controller on
hand to sort out any legal complications,
Kevin McDonald spent day after day in a
gloomy Jersey back office checking files for
relevance to Izodia: “If you can see an original
document in its original file, and you can flick
through to see the connections with other
documents and other files, you get a feel for
relevance much more quickly than if you have
to wait until you are back in London to leaf
through a lever-arch file of photocopies or
scan through electronic copies on-screen.”
Offshore trusts
But not all offshore jurisdictions are as easy to
work with as Jersey. Many require the SFO to
make government-to-government requests
for information and even then it can take a
year or more for anything useful to be released.
An early success for the Izodia case team
was the discovery in Lynch Talbot’s Jersey
offices of a pair of typed A4 sheets that
pointed to Switzerland. SFO financial
investigator Lillian Oscar was responsible for
tracing the Izodia cash: “Once their meaning
had been unlocked, these two documents
told us a lot about how Smith and his
associates did business – in particular how he
had got control of Izodia. The first sheet
showed how the purchase of Izodia shares –
five blocks, the first as early as 4 April 2002 –
had been paid for in part using money loaned
by eight individuals. Together they had
chipped in nearly £1.6 million. The second
sheet listed a sequence of payments in the
following August, three to individuals whose
names also appeared on the first sheet and
the rest to Swiss numbered accounts.
“Most of the names on the first sheet
were long-time business associates of Smith’s;
a secretive ‘club’ of wealthy individuals who
helped fund Smith’s business activities
because they trusted him to make them even
more money. When we first approached
them some were far from keen to tell us the
whole truth. Two had put up almost twothirds
of the £1.6 million. When we asked
them about what looked very much like
matching repayments to Swiss trusts they
denied any knowledge. But we also knew
that these two were doing everything they
could to stop the Swiss bank providing all the
information we’d asked for. It took several
months for our letters of request to bear
fruit but then we could confront them with
what we knew, this time under Section 2,
making it a serious offence not to answer our
questions truthfully. They had wasted a lot of
our time and they got a bit of a shock when
they realised that we now knew that they
had been lying to us for months.”
The motive
Amongst the banking information
investigators soon identified a clear and
pressing motive for the crime. Smith was
over-extended and by early 2002 he already
knew that he would soon need a very
substantial source of ready cash.
Smith visibly enjoyed the lifestyle of the
successful businessman. His home in Jersey
outshone even the governor’s next door.
Another in Surrey overlooked the fifth tee at
Wentworth. Helicopters and executive jets
whisked him to and fro. But this golden life
was not as secure as it appeared. Kevin
McDonald: “Smith had recently purchased 37
Thistle hotels using a £600 million loan from
Morgan Stanley. The interest charges were
enormous and the cash-flow implications
were about to start hurting Smith’s other
businesses just as he was introduced to
Izodia. He paid a £200,000 finder’s fee for
the Izodia introduction; a measure of how
relieved he must have been to discover all
that idle cash.”
Almost immediately Smith hatched a plan
that would culminate in a 29.9% share in
Izodia and effective control by the end of July
2002 at the latest. The timing was crucial.
“Superficially it appeared that Orb – in
other words, Smith – became an Izodia
shareholder when General Equity bought up
Stomp at the end of July. But there was
plenty of evidence from as early as April that
Smith, Orb and Lynch Talbot had a hand,
possibly even a controlling hand, in the
concert party”, says Kevin McDonald. “For
a start Stomp bought its Izodia shares using
money borrowed from Lynch Talbot.
Documents from April showed that Vandyk’s
staff at Corporate Synergy were keeping
Smith unusually well informed about
boardroom moves at Izodia. And, most
remarkably, on 9 May, the same day Vandyk
and Roberts joined Izodia’s board, ostensibly
in their own right, Smith made Izodia CEO
Martin Frost an extraordinary offer; an option
to buy 1.5m Izodia shares at 30p with the
promise that Lynch Talbot would buy them
back within three years at a minimum of
£1.30! This was a powerful demonstration
of executive power and confidence at a time
when Smith was supposed not yet to be a
shareholder, never mind a director.”
1 and 2 August
A watertight case would need to be able to
establish clear lines of responsibility for the
events surrounding the board meeting on
2 August which took the decision to send
Izodia’s cash to Jersey.
DC Bell: “Initially most of what we knew
about the 2 August came from Jolliffe and
the documents seized from Smith’s
companies. But Jolliffe’s grasp was hazy
SFO Annual Report 2006/07 26
The Jersey offices of Lynch Talbot
because he had attended only by telephone,
and we soon realised that we could not trust
the corporate records because our searches
and interviews kept turning up alternative
versions of everything.”