Fiduciary duty and tracing law

Type :

Case study

Pages :

5 pages

Format :

.doc

Published date :

08/11/2009

Category :

Law & contracts

Sub category :

International law

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Summary :

Introduction
The report of the fraud consultant
Issues relating to money laundering
The scope of equitable tracing as a remedy
1. The potential advantages for Baliol in making a claim under equitable tracing
The case of Barlow Clowes International (in liq) v Vaughan
Yardley's breach of employment contract
1. The funds in Yardley's accounts
Knowing assistance and knowing receipt
Conclusion
Bibliography

Abstract

Yardley was employed as wages and personnel manager for BALIOL between 1994 and 2007. One of his jobs each month was to prepare for payday when the staff was paid in cash on the last day of the month. He would cash the check at the LBSC and sort the cash into brown envelopes for each of the employees, with their pay slip. BALIOL'S arrangement with LSBC meant that its cheques would only be honored if signed by Yardley or countersigned by any member of BALIOL's governing body. Between 1994 and 2004, the size of the cheques rose from £300k per month to £500k per month.

In January 2005, the cheque was £1m and in June 2007 Yardley went missing and BALIOL became suspicious of fraud. In January 2008, Yardley was arrested at Johannesburg airport flying in from the Comoros Islands. He pleaded guilty to criminal deception and is now in prison. He confessed to forging cheques and spent the money.