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Serious fraud trial halted amid legal row | Serious fraud trial halted amid legal row |
(about 1 hour later) | |
A judge has halted a serious fraud trial after defendants claimed they could not get adequate representation because of cuts to legal aid. | A judge has halted a serious fraud trial after defendants claimed they could not get adequate representation because of cuts to legal aid. |
Alex Cameron QC - the prime minister's brother, working free of charge on the bid to halt the case - said the defendants would not get a fair trial. | Alex Cameron QC - the prime minister's brother, working free of charge on the bid to halt the case - said the defendants would not get a fair trial. |
The MoJ said "suitably qualified" advocates could have taken the case. | The MoJ said "suitably qualified" advocates could have taken the case. |
The government has cut fees for such long and complex cases by 30%, says BBC home affairs correspondent Danny Shaw. | The government has cut fees for such long and complex cases by 30%, says BBC home affairs correspondent Danny Shaw. |
Judge Anthony Leonard told Southwark Crown Court that the defence had made "very substantial... but unsuccessful" efforts to find barristers to fight the defendants' case. | Judge Anthony Leonard told Southwark Crown Court that the defence had made "very substantial... but unsuccessful" efforts to find barristers to fight the defendants' case. |
It would be a "violation" of the legal process to allow the case to proceed, he added. | |
Contracts terminated | Contracts terminated |
The case was brought last year by the Financial Conduct Authority (FCA) against Scott Crawley and seven other men. | |
It concerned the activities of Plott UK Ltd, European Property Investments Ltd and Stirling Alexander Ltd. | It concerned the activities of Plott UK Ltd, European Property Investments Ltd and Stirling Alexander Ltd. |
The companies are believed to have taken more than £5m from UK investors between 2008 and 2011, the FCA said at the time. | The companies are believed to have taken more than £5m from UK investors between 2008 and 2011, the FCA said at the time. |
Outside court, one of the defendant's lawyers said the collapse of the trial should be a "wake-up call" to ministers. | |
"It is in the interests of justice for both sides that serious and complex cases of this sort should be properly prosecuted and properly tried," said solicitor Philip Smith. | |
"That means with equality of arms whereby you have the best barristers on both sides." | |
He said the involvement of the prime minister's brother had been "absolutely pivotal" in persuading the judge he could stop the trial. | |
Arguing on Monday that the case against five defendants should not go ahead, Mr Cameron said: "A stay is exceptional, but so is lack of representation in this country. We are worried about a fair trial. | |
"It's not the fault of the FCA but we do [blame] the state more widely." | "It's not the fault of the FCA but we do [blame] the state more widely." |
The government has cut the fees for complex, high-cost cases by 30%, and in other Crown Court work by up to 18%. | The government has cut the fees for complex, high-cost cases by 30%, and in other Crown Court work by up to 18%. |
Terminated contracts | |
Nigel Lithman QC, chairman of the Criminal Bar Association which has been opposing government cuts to legal aid, said skilled and experienced advocates were essential in very high-cost cases (VHCCs). | Nigel Lithman QC, chairman of the Criminal Bar Association which has been opposing government cuts to legal aid, said skilled and experienced advocates were essential in very high-cost cases (VHCCs). |
"Each advocate who had signed a contract to undertake a VHCC case was presented by the government with a choice - either to accept a 30% cut in their fees or to terminate their contract. They chose to terminate their contracts," he said. | "Each advocate who had signed a contract to undertake a VHCC case was presented by the government with a choice - either to accept a 30% cut in their fees or to terminate their contract. They chose to terminate their contracts," he said. |
"Since then, we understand that no barrister has signed a new contract to undertake a VHCC at the reduced rates." | "Since then, we understand that no barrister has signed a new contract to undertake a VHCC at the reduced rates." |
Legal aid costs about £2bn a year - half goes on criminal defence and the rest on civil cases including mental health, asylum and family law involving domestic violence, forced marriage or child abduction. | Legal aid costs about £2bn a year - half goes on criminal defence and the rest on civil cases including mental health, asylum and family law involving domestic violence, forced marriage or child abduction. |
The Ministry of Justice said in a statement: "Barristers have refused to work on this case - and a number of other very high-cost court cases - because they do not agree with savings the government is making to legal aid. | The Ministry of Justice said in a statement: "Barristers have refused to work on this case - and a number of other very high-cost court cases - because they do not agree with savings the government is making to legal aid. |
"Even after the savings, if a QC picked up a case like this one, they could expect to receive around £100, 000 for working on it, with a junior barrister receiving around £60,000. | "Even after the savings, if a QC picked up a case like this one, they could expect to receive around £100, 000 for working on it, with a junior barrister receiving around £60,000. |
"The government has made sure that the Public Defender Service (PDS) has a number of suitably qualified advocates who could act in this case." | |
However, in his ruling Judge Leonard said it was "beyond question" that the PDS was "not in a position to provide sufficient representation". | |
The case against the men was "complex and substantial", the court heard, involving 46,030 pages of evidence and 864,000 lines of spreadsheet data. | |
In their search for suitable representation, the defence team contacted 70 barrister chambers with the only one who put himself forward withdrawing in January. | |
It had been feared the defendants would have to defend themselves - but prosecutors agreed this would have been a breach of their human rights. |