Fraud in trusts

Proceedings were commenced in the BVI, Switzerland and Italy around a BVI trust where trustees had distributed to beneficiaries in accordance with a letter of wishes of the deceased settlor, who had died in Italy. Disappointed heirs of a Swiss succession pact said that the trustees had acted fraudulently in not abiding by the succession pact. Withers advised the beneficiaries including on the conflicts of laws issues arising. 

Following the Madoff scandal we advised the investment arm of a bank trustee with numerous Central and Latin American settlors / beneficiaries who had exposure to Madoff.

An unreported case centered on a civil compensation claim by the US Department of Justice and resulted in the freezing of assets in Jersey which were held by a Nevis trustee. Proceedings were issued in Jersey and Nevis.

A Protector misrepresented to Swiss trustees that the primary beneficiaries had agreed that very substantial trust assets should be appointed out to a secondary beneficiary (a close relative of his) on the basis that he would provide for the primary beneficiaries. Later the primary beneficiaries requested the trustees for help. Withers advised the trustees on taking steps to set aside the transfer to him. 

Advising Swiss trustees and a Swiss bank on the recovery of assets relating to unravelling an appointment upon the discovery of a fraud on a family trust and on the assets in the estate of the deceased settler in the sum of approximately £400m.