Episode 257

8th June – 11th June 2026

Sanctions

US Targets Network Moving Iranian LPG Through Front Companies and Shadow Fleet

The US Department of the Treasury’s Office of Foreign Assets Control has designated a network of individuals, companies, and vessels accused of moving hundreds of millions of dollars’ worth of Iranian‑origin liquefied petroleum gas through front firms in the UAE and China, disguising shipments as Omani exports and routing them to buyers in South and East Asia. The action also targets an Iranian exchange house alleged to have facilitated large foreign‑currency transfers for sanctioned banks, as Treasury expands its “Economic Fury” campaign aimed at disrupting Iran’s shadow banking channels, petroleum sales networks, and access to global financial systems.

US Imposes New Visa Restrictions on Nicaraguan Officials Linked to Murillo‑Ortega Government

The US Department of State has announced additional visa restrictions on more than 100 Nicaraguan government officials and their family members, citing their alleged involvement in actions which undermine democratic institutions and contribute to the repression associated with the Murillo‑Ortega administration. According to the department, the measures follow the death of political prisoner Brooklyn Rivera, for which US-sanctioned official Lumberto Campbell Hooker is accused of denying medical care and obstructing burial arrangements. The new restrictions, issued under Presidential Proclamation 10309, bring the total number of Nicaraguan individuals targeted by US entry suspensions to more than 2,350, as Washington reiterates its support for Nicaraguans seeking democratic freedoms.

Australia Imposes New Sanctions on Hamas and Palestinian Islamic Jihad

Australia has announced counter‑terrorism financing sanctions against three individuals identified as senior leaders and financial facilitators of Hamas and Palestinian Islamic Jihad, aiming to restrict the groups’ ability to recruit, fund operations, and disseminate extremist ideology. The government said the measures were coordinated with international partners and form part of broader efforts to combat terrorism and violent extremism. Under Australian law, it is a criminal offence to use or deal with the assets of listed individuals or entities, with penalties including substantial fines and potential imprisonment of up to 10 years. The consolidated list is here.

UK and Partners Impose Sanctions on Networks Linked to Settler Violence

The UK has announced coordinated sanctions with Australia, Canada, France, New Zealand and Norway targeting individuals and entities accused of financing and enabling settler violence in the occupied West Bank, citing concerns over record settlement expansion and rising attacks on Palestinian communities. The measures include asset freezes, travel bans and director disqualifications, and form part of a broader UK effort to support the viability of a two‑state solution, alongside new guidance advising British businesses against economic activity in illegal settlements. The Foreign Secretary also confirmed additional UK funding for humanitarian de-mining in Gaza and financial assistance to the Palestinian Authority, while urging Israel to curb settlement activity, prosecute violent offenders, and ease restrictions on aid delivery. The UK government press release is here.

UK Updates Russia Sanctions List with Variations to Five Designations

The UK government has issued an updated sanctions notice detailing five variations to existing designations under the Russia (Sanctions) (EU Exit) Regulations 2019, confirming that all affected individuals and entities remain subject to measures including asset freezes, trust services restrictions, director disqualification sanctions and transport‑related prohibitions. The notice outlines changes to entries for two companies, namely 2Rivers PTE Ltd and 2Rivers DMCC, and three individuals, Ahmed Kerimov, Talat Safarov and Anar Madatli, each linked by UK authorities to business activities in sectors deemed strategically significant to the Russian government. The update reiterates the legal obligations on firms and individuals to freeze relevant assets, avoid making funds or economic resources available to designated persons, and report any breaches, while also highlighting potential criminal penalties for non‑compliance.

EU Unveils 21st Sanctions Package Targeting Russia’s Energy, Finance, and Trade Sectors

The European Commission has announced its 21st sanctions package against Russia, with President Ursula von der Leyen outlining measures designed to maintain pressure on Moscow’s war economy amid continued strikes on Ukrainian cities and drone incursions into European airspace. The package proposes expanded restrictions across energy, financial services, crypto‑asset platforms, and trade, including a pause to the oil price‑cap adjustment mechanism, new listings of shadow‑fleet vessels, and limits on LNG tanker sales. Additional measures target 31 Russian banks, third‑country entities accused of sanctions evasion, and a range of metals, alloys, and drone‑related technologies. For the first time, the EU also plans to restrict imports of certain fish products and ban entry for individuals who have served in the Russian Armed Forces since the start of the invasion. Von der Leyen said the measures aim to reinforce the economic impact of existing sanctions while supporting Ukraine through new financial disbursements and progress toward EU accession.

Fraud

Contractors Agree to Pay $21.3 Million to Settle Service‑Disabled Veteran Contract Fraud Case

Broadway Electric Inc., Cornerstone Contracting Inc., and senior executives John Oehler and Christian Blake have agreed to pay $21.3 million to resolve allegations that they improperly secured federal contracts reserved for service‑disabled veteran‑owned small businesses, according to the US Department of Justice. Prosecutors said the companies used ineligible small businesses as pass‑through entities from 2017 to 2025 while retaining control over bidding, staffing, and financial administration, diverting the majority of contract revenue to themselves. Investigators from multiple federal agencies stated that the scheme undermined procurement programmes intended to support qualifying veteran entrepreneurs. The settlement, which includes admissions of responsibility, also resolves a whistleblower lawsuit under the False Claims Act, with two relators set to receive more than $3.6 million from the recovery.

Money Laundering

Norcross Man Convicted of Laundering More Than $400,000 in Fraudulent Tax Refund Proceeds

A federal jury in Atlanta has found Festus Anyiam guilty of stealing government funds and laundering more than $400,000 in fraudulent tax refunds obtained through identity‑theft schemes, according to the US Attorney’s Office for the Northern District of Georgia. Prosecutors said the scheme involved using stolen personal information from taxpayers in Illinois and Missouri to file false returns, directing refunds onto prepaid debit cards later used to purchase hundreds of money orders in the Atlanta area. Anyiam deposited the money orders into his bank account and attempted to obscure the source of the funds by purchasing a $406,000 cashier’s cheque and redepositing it elsewhere. He was convicted on four counts of theft of government funds and one count of money laundering, with sentencing scheduled for 10th September 2026.

Newcastle Man Sentenced to Five Years for Role in International Fraud Scheme

Geoffrey K. Auyeung, a 47‑year‑old resident of Newcastle, Washington, was sentenced in US District Court to five years in prison for conspiring to launder money tied to an international fraud scheme which diverted nearly $100 million from investors, according to the US Attorney’s Office for the Western District of Washington. Prosecutors said Auyeung created multiple business entities and opened dozens of bank and cryptocurrency accounts to receive funds from victims who believed they were investing in oil‑and‑gas storage opportunities in Rotterdam and Houston. The money was instead rapidly transferred through domestic and offshore accounts or converted into cryptocurrency, with significant portions routed to individuals in Nigeria and Russia. Despite being indicted in 2024, Auyeung continued communicating with co‑conspirators and collecting commissions, ultimately receiving more than $4 million. He has agreed to forfeit assets including cash, cryptocurrency, and a vehicle, while restitution, which is estimated at over $24 million, will be determined by a judge.

Other Financial Crime

FinCEN Issues Advisory on Illicit Finance Risks Linked to Unauthorised Employment

The US Treasury’s Financial Crimes Enforcement Network has released an advisory urging financial institutions to strengthen detection and reporting of illicit activity connected to the unlawful employment of non‑work‑authorised individuals, highlighting risks such as identity theft, payroll fraud, and the use of shell companies to obscure violations of immigration and tax laws. The notice, issued in coordination with federal banking regulators and the IRS, outlines red flags for suspicious activity, emphasises due‑diligence considerations when customers present Individual Taxpayer Identification Numbers, and encourages institutions to reference a designated key term when filing related Suspicious Activity Reports.

Nine Defendants Convicted in Drug Trafficking, Money Laundering and COVID‑19 Relief Fraud Case

Federal prosecutors in the Southern District of Ohio announced that nine individuals have been convicted in a combined drug trafficking, money laundering and COVID‑19 relief fraud case, following a guilty plea from lead defendant Alex Garnett. According to court documents, Garnett operated a drug trafficking network between 2022 and 2024, distributing fentanyl and cocaine and depositing proceeds into accounts tied to fictitious businesses. Co‑defendant Kimberly Hubbard was found to have filed 26 fraudulent Employee Retention Credit claims totalling more than $4.5 million, of which the IRS paid out approximately $207,000. The remaining defendants, convicted on related charges, were indicted in May 2024. Prosecutors said the case forms part of the Homeland Security Task Force initiative targeting transnational criminal organisations and associated financial crimes.

FCA Warns Consumers Over Misleading Car Finance ‘Money Tips’ Adverts

The Financial Conduct Authority has cautioned consumers about a rise in misleading social media adverts from claims management companies and law firms which present paid promotions as independent car‑finance “money tips,” according to the regulator’s latest notice. The FCA said some adverts impersonate impartial individuals, misuse logos or imagery linked to well‑known organisations, and fail to disclose that consumers can submit complaints for free without using a third‑party firm. Following regulatory action, one firm has removed all its adverts, and the FCA warned it will continue intervening where content risks misleading the public. The regulator also highlighted broader concerns about poor practices in the claims market, including unwanted marketing, unclear consent processes, aggressive fee‑charging, and difficulties consumers face when trying to exit contracts.

FCA Obtains £452,000 Confiscation Order Against Convicted Ponzi Scheme Operator

The Financial Conduct Authority has secured a £452,286.80 confiscation order against Daniel Pugh, who is currently serving a seven‑and‑a‑half‑year prison sentence for defrauding investors of £1.3 million through a Ponzi-style scheme run from his home in Devon. Pugh used social media adverts to attract victims with promises of unrealistic investment returns, though only a small portion of the funds was ever traded. The order, issued at Southwark Crown Court on 5th June 2026, reflects the value of assets available for recovery and will be used to compensate victims. The FCA said the case forms part of its broader efforts to recover proceeds of financial crime, noting that Pugh faces an additional prison term of up to four years and nine months if he fails to pay within three months.

FCA Launches Civil Action Against Neil Woodford Over Alleged Unauthorised Investment Activity

The Financial Conduct Authority has initiated civil proceedings against Neil Woodford and his firm W4.0, alleging they provided regulated investment advice and issued financial promotions without authorisation through the subscription-based platform w4pz.com. According to the FCA, the activities appear to breach sections 19 and 21 of the Financial Services and Markets Act 2000, prompting the regulator to seek an injunction to halt the suspected unlawful conduct. W4.0, operating under the trading name W Four Point Zero FZE LLC, is registered in the United Arab Emirates.

ICAEW Highlights Key Red Flags for Accountants in Detecting Economic Crime

The Institute of Chartered Accountants in England and Wales (ICAEW) has issued updated guidance outlining common red flags which may indicate economic crime, urging accountants to remain vigilant as regulatory expectations intensify. The advisory highlights indicators such as unexplained changes in client behaviour, unusual transaction patterns, opaque ownership structures and resistance to providing documentation, noting that early detection can help prevent money laundering, fraud and other financial misconduct. ICAEW said the guidance forms part of its broader effort to support professionals in meeting their legal and ethical obligations as criminal methodologies continue to evolve.

High Court Intervention Offers Glimmer of Hope for Victim of €2.5 Million "LedgerLock" Crypto Fraud

Now to a case argued in the High Court of England and Wales this week which is another stage in the litigation concerning a high-value fraud. A German engineer, who spent 25 years building a career in mechanical engineering, has found his life savings at the centre of an international legal battle after being targeted by a fraudster posing as a UK investment adviser. The High Court this week moved to continue a worldwide freezing order against an individual known only as "Brian Smith," while simultaneously ordering a major cryptocurrency exchange to make certain disclosures relating to the claim.

The ordeal started with a cold call in late 2025. The caller, "Smith," spoke with a British accent and appeared to possess intimate knowledge of the victim’s previous, unsuccessful investments on a defunct platform called EuropeFX. This specific data, which was likely harvested from leaked databases or public blockchain records, gave Smith an air of institutional authority which proved devastatingly effective.

Under the guise of a company called LedgerLock, Smith guided the businessman through what he termed the "IBM process". Using screen-sharing software, the fraudster watched as the victim transferred approximately €2.6 million into what appeared to be secure, regulated wallets. The illusion of legitimacy was maintained through a fake two-factor authentication system and a small "test" withdrawal which actually reached the victim's bank account. However, by late January 2026, the dashboard went dark, passwords were changed, and the "investment adviser" vanished.

While the fraud was high-tech, the recovery effort relies on forensic accounting. Specialised investigators from Crypto Forensiq managed to trace 100% of the stolen 32.457826 Bitcoin to infrastructure associated with the HTX exchange, owned by Huobi Global S.A. This tracing persists even though the perpetrators used "pooling transactions", which is a technique where stolen funds are mixed with other assets to muddy the waters.

The exchange’s role has introduced a layer of friction into the proceedings. Huobi’s responses were described by the court as "formulaic" and "dismissive," largely consisting of suggestions that the victim simply contact the police. This lack of engagement appears to have frustrated the court, particularly as HTX currently sits on the Financial Conduct Authority (FCA) Warning List for operating in the UK without proper authorisation.

Deputy High Court Judge Guy Vassall-Adams KC took a firm stance, suggesting that the exchange’s silence might effectively provide what he described in the judgment as a "safe haven" for the proceeds of crime. By invoking the Bankers Trust jurisdiction, the judge ordered Huobi to disclose the identity of the account holder who received the Bitcoin.

While the ruling is a significant intermediate victory, the path forward remains somewhat complex. The court acknowledged that the victim’s ability to fund further litigation is now severely limited because the fraud "deprived him of his life savings". There is also the persistent reality that "Persons Unknown" are notoriously difficult to unmask, even with a court order in hand.

Against this backdrop, the judge awarded the victim costs of over £60,000 on an indemnity basis, holding both the fraudster and the uncooperative exchange liable. Whether these orders will result in the actual return of the Bitcoin remains to be seen, but the case highlights a growing judicial impatience with platforms which fail to police their own digital corridors. The judgment is here.

Cybercrime

Warren Urges Treasury to Bolster Cyber Defences as AI-Driven Threats Intensify

US Senator Elizabeth Warren has called on Treasury Secretary Scott Bessent to strengthen cybersecurity protections across the financial sector, warning that emerging artificial intelligence tools could accelerate the ability of malicious actors to exploit software vulnerabilities. In a letter to the Treasury, Warren cited 2025 data showing financial institutions experienced the highest number of data breaches for the second consecutive year and argued that recent deregulatory actions and reductions in federal cyber resources have left critical systems exposed. She urged the administration to restore cybersecurity capacity, enhance bank supervision and vendor oversight, and improve threat‑information sharing, requesting a formal response by 16th June to support ongoing oversight responsibilities.

NATO Cyber Simulation Highlights Narrow Win Over Russia‑Style Adversary

It is being reported by the FT and other mainstream publications that NATO officials narrowly outperformed a Russia‑style adversary during a three‑day cyber defence simulation in Bydgoszcz, Poland, where alliance members and Ukrainian specialists evaluated responses to coordinated attacks on a fictional nation’s power grid, banking system and emergency communications. The exercise, hosted at NATO’s Joint Analysis, Training and Education Centre, examined how governments manage disinformation, public messaging and inter‑agency coordination under pressure, drawing on Ukrainian battlefield experience to mirror tactics used by Moscow since 2022. Judges reported that the hostile “Karti” team, which was played by Ukrainian participants, lost by a slim margin, despite demonstrating faster pace and more advanced use of AI tools, highlighting both the progress made by NATO members and the challenges of replicating real‑world information warfare.