Landmark UWO issued in £100m fraud case

The Serious Fraud Office (SFO) secured its first Unexplained Wealth Order (UWO) at the High Court today, targeting a £1.5 million Lake District property believed to have been purchased with proceeds from a £100 million fraud. This landmark case represents a significant step in recovering criminal assets.

The property is owned by Claire Schools, ex-wife of solicitor Timothy Schools, who was sentenced to 14 years in prison in 2022 for his role in the fraud. The UWO freezes the property to prevent its sale and requires Ms Schools to provide proof of its legitimate acquisition within 28 days. Failure to do so could allow the SFO to seize the asset.

This follows the SFO’s recovery of £1 million from Schools in a separate confiscation hearing earlier this month.

A UWO, introduced by parliament in 2017, enables authorities to investigate the source of funding for assets where there is reasonable suspicion of criminal activity. If recipients fail to prove assets were acquired legally, they risk losing them.

Nick Ephgrave QPM, Director of the SFO, called the case a milestone for the agency. “This follows on from last week’s successful £1 million recovery to go back to the victims. Wherever criminal assets have been hidden or dispersed, we will progress our investigations with determination and explore new methods to recover funds for victims and the public purse.”

This marks the first time the SFO has used a UWO and only the second time any UK law enforcement authority has employed this powerful investigative tool.