Recession cuts down value of assets seized from criminals

THE value of assets clawed back from criminals in Yorkshire has fallen dramatically because the economic slump means the property they own is now worth substantially less.

In the past few years police have invested in economic crime units staffed with highly experienced detectives and other specialist staff to identify assets gained through crime and claim back the value through the courts.

Although the primary purpose is to deny criminals the profits from their activities, the money raised through confiscation hearings goes back into crime fighting, either locally or nationally.

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That source of income has been hit badly in some areas, however, with assets recovered in North Yorkshire down by more than 60 per cent last year compared to the previous 12 months, even after the launch of a new publicity campaign aimed at encouraging the public to pass on information about criminals with lavish lifestyles.

By contrast, in most areas cash seizures from criminals have increased, indicating that offenders are as active as ever, but items like houses and cars were worth substantially less and the amount of money raised for the state has fallen.

The situation is unlikely to improve without a recovery in the property market but some senior officers hope the positive impact of the "Why Should They?" campaign will be felt as more cases reach a conclusion with confiscation hearings.

North Yorkshire Police is calling for the Government to review the rules surrounding its Proceeds of Crime Act because lawyers are increasingly likely to mount defence actions.

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In a period of declining property values, that can mean the sums recovered are ultimately less than they might have been.

Ian Wills, Head of the Economic Crime Unit of North Yorkshire Police, said: "I think the Proceeds of Crime Act needs to be looked at because we are seeing more active defences creating time delays in seizures.

"We need to be able to seize assets at the point of charge because they are taking significant time to get though the courts."

He added: "A criminal's property that was worth 250,000 six months ago has dropped significantly over that period."

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Three of Yorkshire's four forces saw a decline in the value of assets recovered last year, with North Yorkshire experiencing the sharpest decline from 1,201,539 in confiscation orders for 2007/08 to secure 442,672 in 2008/09. South Yorkshire Police suffered a fall of 23 per cent in assets recovered – a drop of almost 1m.

Humberside Police saw a slight drop, although West Yorkshire Police had a rise from 1,510,342 to 3,347,216.

The cash forfeited by criminals unable to prove that it was from legitimate sources, rose in three out of four force areas.

Mr Wills confirmed the statistics had been affected by the property slump, with numbers of convictions actually rising.

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DI Paul Welton, head of the Economic Crime Sector of Humberside Police, said the Why Should They? campaign would not see results for at least 12 to 18 months because of the time applications take.

He added: "We've got 2m going through the system at the moment. With the value of houses dropping it means the value of assets has been dropping."

Graham Wragg, from the Economic Crime Unit for South Yorkshire Police, said: "There can be no doubting though that the economic downturn has adversely affected the value of everyone's assets even those of the criminals."

Ch Supt Howard Crowther of West Yorkshire Police said: "The recession and the hard times being endured by many make the question of 'Why should they?' even more relevant."