The Serious Fraud Office (SFO) has secured £1.1 million from the sale of a Lake District house in an investigation involving its first use of an Unexplained Wealth Order (UWO).
Investigators traced criminal funds to a five-bedroom property called ‘Hope Springs House’ belonging to Claire Schools, ex-wife of convicted fraudster Timothy Schools.
The house, which includes a two-bedroom lodge and views of Lakeland Fells, was purchased using money from School’s former husband’s multi-million-pound investment scheme fraud involving no win, no fee law firms.
The UWO was granted at the High Court in January this year, with Claire Schools selling the property in April.
Schools’ ex-husband, Timothy, was convicted in 2022 and sentenced to 14 years in prison for defrauding investors via a scheme that sold investment in legal cases.
Timothy Schools diverted funds from the scheme to himself, receiving over £19 million in benefits.
After Schools was convicted, he conceded he had transferred £1,083,067 in proceeds of crime to others, mainly family members.
The SFO’s investigation into Timothy Schools’ assets is ongoing with the next hearing scheduled for 26th September at City of London Magistrates’ Court.
Nick Ephgrave QPM, Director of the Serious Fraud Office, said
We will use all the tools at our disposal to recover proceeds of crime from those associates and family members who seek to benefit from the criminal activity of others.
Unexplained wealth orders offer investigative opportunities to pursue assets on behalf of victims and taxpayers. This is our first successful use of this legislation and it certainly won’t be the last.
The Solicitor General Rt Hon Ellie Reeves MP said
Fraud is a pernicious crime. It hurts individuals and businesses, and harms business confidence.
I welcome the SFO’s successful recovery of more than £1 million from a convicted fraudster – one of the first law enforcement bodies to use such powers. This is money that will go straight back to the public purse and deny a prolific fraudster’s family benefiting from his criminal activities.
