Plea negotiations are to be introduced and Crown Court powers will be extended to make fraud prosecutions more effective, Attorney General Baroness Scotland (pictured) announced today (18 March). Legislation is also planned to allow the Crown Court to bar convicted fraudsters from practising in certain key professions, including as a solicitor.

New guidelines issued to prosecutors today encourage discussions about guilty pleas in fraud trials to happen earlier and more transparently. The Crown Court will be given new powers to bar fraudsters from professional practice and wind up their companies. The range of fraud victims eligible for criminal compensation will be widened and enforcement measures strengthened.

The measures are linked to criminal justice aspects of the National Fraud Strategy, which is being published in full tomorrow.

Baroness Scotland said: ‘The measures are designed to help prosecutors deal with fraud more effectively and efficiently, to the benefit of the public and all parties involved. I am issuing today new guidelines to prosecutors to put discussions about plea and possible sentence on a much clearer footing in fraud cases.

‘The benefits of plea negotiations are especially marked in fraud cases and can narrow issues for trial, saving time and costs, and reduce stress for victims and witnesses. This plea negotiation framework is specifically designed for our criminal system and is not about offering discounts, immunity or incentives to fraudsters. It doesn’t require a defendant to assist the prosecution, and is careful to avoid a perception of plea "bargaining" associated with the US. It highlights the importance of judicial discretion to agree, reject or alter the agreed plea, and to impose an appropriate sentence.

She added: ‘In strengthening sentencing powers for the Crown Court we are improving the court’s ability to stop fraudsters reoffending and to compensate victims.’

Director of the Serious Fraud Office Richard Alderman commented: ‘Since I arrived at the SFO I have been looking at ways in which we can sharpen the tools available to us. As the attorney general has noted, early plea negotiations are not the same as plea bargains in the US, though I am keen to take what we usefully can from the American experience. They are about streamlining systems and delivering justice faster. The new measures, including the new Crown Court powers, will also help witnesses and victims, whom I see at the heart of what we do.’

The AG’s guidelines emphasise the importance of legal representation for a defendant before entering negotiations. Informal discussion of pleas already takes place but does not presently address a defendant’s sentence.

The guidelines encourage plea discussion at a much earlier stage before charge, and in a more formal, open and transparent manner. In one complex fraud case, the SFO estimated that £1.5m in prosecution costs alone would have been saved through a successful plea negotiation.

On sentencing powers for the Crown Court, the government intends to bring forward legislation extending the range of fraud victims who will be eligible for compensation, and strengthening the enforcement measures available to the courts to see that compensation orders are paid. At present a victim of fraud can only receive compensation from a Crown Court case if they are listed in the indictment. Under the new measure the judge will be able to make compensation orders for all victims arising from a fraud offence.

Legislation is also planned to allow the Crown Court to bar convicted fraudsters from practising in certain key professions, such as a solicitor, financial service provider or estate agent, and to wind up companies that have been used as vehicles for fraud. These powers exist but are presently carried out by civil courts or regulators, often hearing the same evidence as at a trial. The AG said that granting these powers to the Crown Court will reduce the need for duplicated criminal, civil and regulatory proceedings, and strengthen confidence in the ability of the courts to protect the public from fraud and compensate victims. This legislation will be introduced as soon as the parliamentary programme allows, the AG said.

A copy of the paper The Introduction of a Plea Negotiation Framework for Fraud Cases in England and Wales and Extending the Powers of the Crown Court to Prevent Fraud and Compensate Victims: Summary of Responses to Consultation Papers is available on the Attorney General’s Office website www.attorneygeneral.gov.uk, together with a copy of the Attorney General’s Guidelines on plea negotiations being sent to prosecutors.