ANTI-FRAUD INITIATIVE: solicitors playing vital role

Solicitors are set to play a vital role in the establishment of a European Internet-based anti-fraud database, academics working on the project said last week.

The Edinburgh-based project - called Financial Fraud Prevention-Oriented Information Resources using Ontology Technology (FFPOIROT) - will target sellers of fictitious goods over the Internet, and VAT fraud.

The project's objective - when it completes in 2005 - is to provide a knowledge base on the Internet.

VAT fraud occurs when a fraudster registers for VAT in one EU country, and imports goods from other EU member states without paying VAT.

The goods are resold adding VAT which is not then paid to Customs, and the fraudster disappears with the money.

Wim Vandenberghe, an EU and IT law specialist working on the programme at Edinburgh University's school of law, said: 'We are analysing the legal documentation which deals with financial fraud in Belgium, the UK and Italy - examining the relevant case law, statutes and doctrine.

'To complement this written resource, we interview experts in the field of financial fraud ranging from police, solicitors, government bodies and academics.'

One law firm that has liaised with the FFPOIROT project is London-based specialist fraud practice Philippsohn Crawfords Berwald.

Partner Trevor Mascarenhas said: 'The aim of the project is to establish a comprehensive and user-friendly database indexing scheme to provide advice and assistance in the prevention, detection and investigation of fraud for investigative and monitoring bodies, financial professionals and company accountants.

It is planned that legal resources will be available on databases which may require input from lawyers across the EU.'

He added: 'In a world where fraud is becoming increasingly more sophisticated and more international, this database could prove an invaluable tool to deal with fraud speedily, allowing steps to be taken before it is too late.

Both lawyers and their clients may benefit from being able to tackle fraud before the fraudster and the proceeds of the fraud have disappeared.'

Jeremy Fleming