Principles of asset freezing

Natalie Todd, partner at Cooke, Young and Keidan, examines the impact of the recent Luckhurst case on whether fraud suspects can use frozen funds to pay legal expenses in civil litigation

The Supreme Court handed down its decision in R v Luckhurst [2022] UKSC 23 on 20 July 2022. It clarified that defendants who face both civil and criminal proceedings and are subject to the terms of a criminal restraint order granted pursuant to the terms of the Proceeds of Crime Act 2002 (POCA) may seek a variation of the restraint order. 

Such a variation may permit them to spend reasonable legal expenditure for concurrent civil proceedings even where the civil proceedings are founded on the same or similar allegations, alleged facts and/or evidence as those of the offence(s) which gave rise to the restraint order. 

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