Recovery agency seeks lawyers to wield power

The controversial new Assets Recovery Agency (ARA) - which was launched this week with unprecedented powers to confiscate goods and cash - is looking for 30 lawyers to execute high-security work at an undisclosed location.

But there were warnings this week that the agency will be able to impound client money held on account by law firms and other professionals, if it can show that the cash resulted from unlawful conduct.

With an initial budget of 14 million, the ARA - created by the Proceeds of Crime Act 2002 - can freeze and seize assets, without notice, after convincing the court on a civil 'balance of probabilities' test that they were the result of unlawfulness.

It will also have the power to tax a company if there is 'reasonable ground for suspicion that it has gained financially from crime'.

Keith Oliver, a partner at London fraud firm Peters & Peters, said the powers gave the ARA an enhanced weapon, and its 'impact will be far reaching'.

The ARA will have around 150 staff, including about 30 lawyers, with the rest Continued on drawn from the police and forensic auditors.

Richard Alderman, a manager in the Inland Revenue's legal office who has been working to set up the ARA, said: 'We'll be looking for keen, enthusiastic lawyers who are not afraid of pressure and who want to make a difference.'

He said the lawyers would be from the private and public sector.

The ARA will also use some private firms on a case-by-case basis to carry out its court work.

The agency's director, Jane Earl, acknowledged that the ARA would face tough challenges to its decisions in the courts.

The locations of the ARA's offices have not been revealed for security reasons.

One top fraud lawyer told the Gazette that regulated professionals will undergo substantially increased exposure to allegations of wrongdoing as a result of the ARA's powers.

He said that assets - including fees and money held on account at law firms - could be frozen where it can be shown on a civil test that they were obtained by clients through unlawful conduct overseas.

Jeremy Fleming