Black Cube executive says UK austerity helped business
Private companies are racing to fill a vacuum in white-collar crime investigation left by cash-strapped law enforcement agencies, according to a former top UK police officer who has joined the controversial corporate intelligence firm Black Cube.
Adrian Leppard, who joined Black Cube’s advisory board in
December, told the Financial Times that a surge in cyber fraud in recent years
had not been matched by an increase in police resources.
“No new police resources were ever made available to
investigate it. And as a result of which, only one in 500 frauds are actually
prosecuted now,” he said in an interview, referencing an estimate based on
official figures reported last year. “So there’s absolutely a business need for
private investigation.”
The comments are a rare acknowledgment by a former top
police officer that some fraud in the UK is going unpunished, after years of
policing budget cuts since the financial crisis.
Central funding for police forces was reduced as part of a
long-running austerity programme, though last year the government said it would
increase budgets and recruit more officers.
The retrenchment has spurred demand for the services of
private intelligence companies — many based in London’s Mayfair — and for
private prosecutions, which allow companies and wealthy individuals to pursue
criminal cases in British courts.
The extent of the industry’s reach into business, national
security and politics was underscored recently when Boris Johnson recruited his
new chief of staff, Dan Rosenfield, from Hakluyt, a London-based private
intelligence company founded by former MI6 officers.
Companies such as Black Cube are hired by wealthy
individuals and companies, often in the context of litigation, to investigate
rivals and adversaries. Founded in 2011 by veterans of the Israeli intelligence
agency Mossad, Black Cube has been among the most prominent and controversial
of such firms, in large part because of its work for Harvey Weinstein.
Lawyers for the disgraced movie mogul hired the firm in
2016 as he sought to counter allegations about sexual assaults he
committed. The effort ultimately failed but The New Yorker in 2017 reported
that Black Cube operatives had surveilled reporters who were investigating
Weinstein and spied on actor Rose McGowan as she prepared to speak out about
the abuse she suffered. Weinstein was convicted of sex crimes in 2020 and
sentenced to 23 years in prison.
Leppard, who retired from the police in 2016, said the
company had withdrawn from the contract when it realised allegations against
Weinstein were genuine, and has since instituted “a very comprehensive
code of ethics”. He said Black Cube would not take on a client such as
Weinstein today, noting that his role included the right to veto potential new
Black Cube clients as well as providing operational advice.
Other clients of Black Cube have included Beny Steinmetz, a
Franco-Israeli billionaire who was found guilty of bribery in the acquisition
of African mining rights in a Swiss court last month. Steinmetz has said he
will appeal.
Leppard said Steinmetz was a “historic” client of Black
Cube.
In the past, Black Cube was also retained by ENRC, a mining
house controlled by Central Asian oligarchs. It was once among the most
valuable companies listed in London but is now fighting a long-running
investigation by the UK Serious Fraud Office. ENRC denies any wrongdoing.
While declining to discuss specific cases, Leppard, who was
commissioner of the City of London Police until 2015 and was awarded a CBE for
services to policing, defended the use of deception and undercover surveillance
as necessary tactics.
“It’s quite lawful to deceive people if you’re doing it for
the greater good,” he said, pointing to what he called the successes among
Black Cube’s 350 cases, such as its role in revealing corruption in Mexican oil
industry.
Leppard said that under Black Cube’s new ethics rules, the
firm would not take on cases involving sexual harassment, or clients who were
violent criminals. He said the firm complied with the law in every country
where it operated and no longer used offensive cyber techniques such as
computer hacking.
In 2016, Black Cube operatives in Romania hacked email
accounts belonging to associates of Laura Codruta Kovesi, an
anti-corruption prosecutor who was fired in 2018 and subsequently appointed the
first European Union-wide Chief Prosecutor.
Leppard said his understanding was that Black Cube had
believed it was working for Romanian intelligence. He added that the operation
predated Black Cube’s adoption of a code of ethics that prohibits hacking. “To
my knowledge the company is keeping to this statement vigorously,” he said.
He would not rule out that Black Cube would investigate
journalists, only that it was “extremely unlikely” that the company would do
so. “I think you have to look at each case and what you’re seeking to achieve,
what’s the greater good of what you’re seeking to achieve,” he said.
Comments
Post a Comment