SFO recovers criminal assets from £740 million property fraud

A recent SFO investigation exposed how criminal proceeds from this fraud were donated towards a theatre at Kallakis’ child’s London private school in 2005. When the school later removed the Kallakis name from the theatre, the family took legal action against it, revealing the additional funds to the SFO.

Following a three-day hearing at Southwark Crown Court, this donation, paid through a complex family trust fund, was confirmed as the proceeds of crime.

The SFO has already confiscated £3.25 million from Kallakis after the orgtanisation’s original investigation into both Kallakis and co-conspirator Alexander Williams exposed a £740 million fraud, resulting in their imprisonment back in 2013.

Although other parties associated with the family trust laid claim to the funds, His Honour Judge Baumgartner found in favour of the SFO.

Determination to pursue

Commenting on the verdict, Lisa Osofsky (director of the SFO) said: “This ruling demonstrates the benefits of our determination to go after fraudsters, no matter when they committed a crime or where they hide their assets. In the last two years alone, we have recovered 100% of the funds we’ve pursued – almost £140 million in proceeds of crime – including from cases a decade after prosecution like that involving Kallakis.”

The judge has ordered Kallakis to pay the amount of £92,500 within 28 days.

As stated, Kallakis and Williams were convicted and imprisoned in 2013 after an SFO investigation exposed how the pair forged documents and made false claims to obtain substantial loans from the Allied Irish Bank and the Bank of Scotland.

The loans enabled Kallakis and Williams to acquire a London property portfolio worth £740 million, including a £75 million, 23-storey tower in Vauxhall, a £100 million processing centre in Croydon and the £225 million headquarters of a national newspaper in central London.

At the height of the fraud, Kallakis maintained a fleet of chauffeur-driven cars, a private plane and a helicopter, a luxury yacht in Monaco and a valuable art collection.

The SFO’s thorough investigation into Kallakis and Williams’ proceeds of crime continues.