R v LW – Confiscation at Harrow Crown Court – 2024

The index offence related to the use of the “encrochat” secure networking device had been compromised by the French Authorities in the early part of 2020.  The defence had already established the defendant had a legitimate and successful business and were able to show that none of the funds from the drugs conspiracy were laundered into this legitimate business. The defence at an early stage were able to submit the defendant’s accounts and bank statements to prove their assertion.

It was the defence case was LW was a broker using the “encro” device to put customer and supplier together for which he would be paid a fee, usually between £50 – £100. Therefore, he was neither in “possession” of the drugs nor did he have any proprietary interest in the commodity or the proceeds of its sale. He asserted that he received no more than £15,800 during the currency of the conspiracy and argued that that should be the benefit figure.

The prosecution agreed the defence’s interpretation of the relevant legal authorities in relation to proprietary interest and that this was a factual dispute on the evidence.

The defence were able to show through careful analysis, the instruction of a drug expert witness, legal submissions, cross examinations of the prosecution Financial Investigator and prosecution drug expert witness,  that the defendant had no proprietary interest in the drugs. After a three-day contested hearing, the Court agreed with the defence and ruled the benefit figure of £15,800 a decrease of £533,315.12 from the prosecution’s originally asserted benefit figure.

Instructed Counsel – Leon Kazakos KC from 2 Hare Court