HUMAN RIGHTS ACT: legislation could be used to challenge agency's powers, says barrister

The Human Rights Act could be used to challenge the powers of the Asset Recovery Agency (ARA) and allow solicitors to be paid fees from frozen assets, a forum in London on restraint and confiscation heard last week.

Richard Brent, a barrister from 3 Verulam Buildings in London, told the forum - organised by accountancy firm RSM Robson Rhodes - that the agency's civil recovery orders might be deemed by a court to be criminal-style powers.

If so, defendants would be protected by articles 6.2 and 6.3 of the European Convention on Human Rights, giving them the right to choose a legal adviser, he said.

At the moment - although entitled to legal aid - those against whom recovery proceedings are started are not allowed to pay lawyers from their frozen funds.

Mr Brent also said that under article 6.3 of the convention - the right of defendants to hear what charges are made against them - the ARA might be obliged to give those against whose assets it seeks recovery, details of the alleged unlawful activities affecting the assets.

Jane Earl, the director of the ARA, said: 'The Proceeds of Crime Act was subject to lengthy and appropriate debate in passage through parliament.

These human rights points raised were considered during that passage, and parliament took note at that point to address any concerns.'

Andrew Benson, a partner in the fraud department at London law firm Byrne & Partners, said: 'I envisage that there will be all sorts of challenges to the ARA's powers and there is an arguable case in respect of restraining the defendants use of assets, but I'm not certain how successful they will be.'

Meanwhile, Michael Richard Stannard, a 54-year-old barrister, has been ordered to pay the Inland Revenue 1,678,954 following a confiscation hearing at Southwark Crown Court.

Stannard, of Moulin de Beaufils, Hambye, Normandy in France was given 12 months in which to satisfy the order.

If he fails to pay within that time, he risks adding four years to the four-year prison sentence he received at Southwark Crown Court in February 2001, when he was convicted on two counts of fraud committed between 1 October 1992 and 31 October 1997.

A spokeswoman for the Bar Council said it was likely that disciplinary proceedings against Stannard would begin in December.

Jeremy Fleming