Source: http://www.accountingevidence.com/blog/2012/11/confiscation-default-sentence/
Timestamp: 2019-04-26 02:53:18+00:00

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I wouldn’t be in a position to answer that one, sorry!
I can answer that one. In Prison Service Orders (PSOs) it does state that unsettled confiscation orders could prevent recategorisation. I don’t think it would bar a recategorisation from A to B, however it will definitely prevent a move from C to D (open conditions). Trust me on this because it happened to me!
I am currently serving default sentence of confiscation of 730 days, where I should serve half of that period. Is that correct?
Also what would be the situation after my release that I have any legal rights to declare bankruptcy or filing inadequacy order, because I have no hidden assets, but judge assumed that sentence would be proportionate from his own judgement.
Please help me in relation to above matters.
You need legal advice from a lawyer. I am not a lawyer I am an accountant.
See my blog article ‘Can a bankrupt individual be subject to confiscation?‘ for some help on the bankruptcy point, but each person’s situation needs to be considered on its own facts.
What recourse does the law have to further punish an individual who has been made the subject of a confiscation order, served the default sentence in full and been released. Obviously the debt is still owed, but what powers, if any does the court have to further punish you? Am I right in thinking that you cannot be sent back to prison after serving a default sentence for the same debt?
A person who has served a default sentence cannot be required to serve it again in respect of the same debt – but can be required to serve an extra term in relation to outstanding interest on the debt.
The debt is still owed and the prosecution can apply to the Court to enforce the debt. For example the prosecution could ask the Court to appoint an enforcement receiver to take ownership of the defendant’s assets (assuming that he has some) and sell them.
Just a question related to the one above, if a person has no assets and no money what will happen then?
My partner did an offence in 2010 of which he served a jail term. Then was kicked out on streets by family due to shaming them. It was 3500. He was sleeping rough at my freinds snooker club on chairs. All he had was clothes he was wearing. I use to go and take him food.
I am sorry to hear this. I am not a lawyer so I cannot advise you. In any event if the information was put before the court and they made their decision there is nothing I can suggest.
My partner has a confiscation order of £19,000. He’s due for tagging in August but no one really has the answers for my questions. Do you know if he can get tag with his outstanding proceeds?
His 6 months end on the 18th of October but if he don’t get a tag he’s got no way in paying it. He wont get releases till December but will he get released then or will he have to do another prison sentence?
If so how long would it be and if we could get £10,000 would he be able to get released in August or will there be another prison sentence for the £9,000?
I’m grateful if you could help in anyway – second solicitor and still no one knows.
I am an accountant, not a solicitor. You really need a solicitor to advise you about this.
For what it’s worth, my understanding is that in the event of non-payment there will be a hearing in the Magistrates’ Court which the defendant must attend (either in person or by video link) and at that hearing the Magistrates will issue a ‘committal order’.
A prisoner serving a sentence for an offence (the main sentence – not a default sentence) will normally be released on Home Detention Curfew (a tag), if he is eligible, on the date notified to him. He cannot be retained in prison when he should have been released on a tag simply because he has an outstanding confiscation debt. He can only be retained in prison if the Magistrates Court has made a committal order.
My understanding is that the Magistrates Court will not make a committal order until after the time to pay has expired.
When the confiscation order was made the judge will have said how long the default sentence will be if the amount is not paid. If part of the amount due is paid then the default sentence is reduced in proportion. There is no release on HDC (a tag) during the default sentence – but there is release on temporary licence (ROTL) in a default sentence.
Hi David,are you able to tell me what happens to an individual who has served their default sentence and after they are released, they sell an asset which the prosecution did not know about at the time of the sale but have become aware of the asset after the sale? They are in breach of the original Restraint Order arguably or does the Restraint Order cease to have effect after a Confiscation Order is made? What sanctions are available if they sell an asset after they have served the default sentence?
You are asking about the law. I am not a lawyer – I am an accountant. You need to seek advice on these questions from a lawyer.
Where a restraint order is made and there is also a confiscation order then s42(6) PoCA 2002 says the restraint order must be discharged (cancelled) “on the conclusion of the proceedings”.
That means when the confiscation order has been satisfied or discharged – see s85(5).
But if an additional asset ‘turns up’ there is a possibility that the Crown will seek amendment of the defendant’s ‘available amount’ under s22.
Failure to disclose an asset would be in breach of the restraint order and would be treated as a contempt of court.
If it was the case that your original confiscation order amount was based on your ‘available amount’ and your ‘available amount’ now is less (because your business has gone into liquidation) then it may be possible to have the amount of the confiscation order reduced.
You need to contact a solicitor about making an application to the Crown Court under s23 PoCA 2002.
If the court reduces the amount you have to pay it may at the same time reduce your default sentence.
You need to take legal advice from a solicitor or barrister, I am an accountant.
Broadly speaking the provisions for release at the half way point and for release on temporary licence (rotl) operate in a default sentence in the same was as on any other sentence. However release on home detention curfew (hdc or a ‘tag’) is not available to a person serving a default sentence.
My friend is serving a default sentence, during the time the accountant has advised to close down his buisness which have been reopened by another person, how does this work in court as there saying there still trading ? Also his wife is entitled to half off all assests.
My father was sent to prison for an outstanding ammount on his confiscation, his orginal ammount was for 520K with interest at the RPI rate, if he failed to pay a prison term of 3 years was imposed. and he managed to pay 320K of this. With 200k outstanding but the court has added interest to his outstanding ammount and sent his to a term not for his outstanding ammount but this plus more interest as the matter went to the COA and took several months to ressolve. Can they do this.
Have a look at my blog article “Interest on an unpaid confiscation order” for an explanation of this.
I have a poca order that has now been settled the available amount has been paid and the benefit amount remains as I don’t have it.
How long does the Benefit figure last? If you inherit anything later in life can it be confiscated?
Yes, in effect a confiscation order is a ‘life sentence’ in that if you at any time acquire assets the Crown can seek an order that you pay a further sum until the ‘benefit’ has been paid.
The ‘benefit’ figure is adjusted for changes in the value of money (inflation) so increases over time.
i have a committal 28 day prison sentance for non payment of fine will i serve half of that or the full 28 days ?
You need to speak to your solicitor about this.
I have been released from a 19 month sentence served 9.5months. I still have POCA case outstanding, the Prosecution will not agree a court time or date. In my accepted basis of plea, in clearly stated I did not financially benefit. The CPS have tried to state I lead a criminal lifestyle, I have proved all of my income over the past 6 years with pay slips and income tax returns, I also have my accountant as a defence witness. My Lawyer has advised me that the CPS are procrastinating as they are aware that they will have to drop the criminal lifestyle due to the amount of evidence I have and witnesses. In the meantime my bank accounts and assets are still frozen, I cannot get on with my life it like serving another sentence. I cannot go for abuse of process until after 2 years from the conviction date. Any advice on this draconian law? if the public only knew that they were living in a dictatorship!!
Without the full details (including the offence of which you were convicted) I cannot say much. It MIGHT be the case that you could get the restraint order modified to permit you to ‘get on with your life’ but frankly I would expect the court to be reluctant to do much whilst a confiscation hearing is pending.
I know that you are not a lawyer, but you appear to be a fountain of knowledge in confiscation matters, so I wonder if you can answer the following question for me. My son was subject to a confiscation order in 2013. He satisfied the order allbeit not within the period allowed. The CPS are now pursuing him for £68,000 interest accrued which he does not have; and are threatening to ask the court to impose a default term if he does not pay. My question is: when did the the power to impose a default sentence solely for the non payment of interest come into force?
Under s12(4) PoCA 2002 the interest must be treated as part of the amount to be paid under the confiscation order.
To understand how this works imagine this example. John is subject to a confiscation order for £150,000 with a default sentence of 30 Months. He pays the £150,000 but he pays it some years late. By that time interest of £50,000 has been added to the amount. John does not pay any of the interest. The default sentence which can be imposed on John is 10 months – which is 30 months x £50,000 / £150,000.
You seem to be the only place on the Internet to get advice on this.
His benefit was given as 1.2m which was around 5x the reality.
They say he has avaliable assets of 120 000. He will only be able to raise around half this so knows he will serve extra time and still owe this on release.
My question is there is a chance that in the future he may inherit 500 000 – will the court be able to take this. If so does he need to arrange for this relative to change his will to bypass him and go directly to his children.
If the amount due under a confiscation order is not paid on time then interest is added to the amount payable. The interest is calculated at 8% per annum. Your friend should check how much interest has been added so far. Normally the default sentence which he would have to serve would be reduced if part of the amount due had been paid – but if interest has been added he may not get as much reduction in his time in prison on default sentence as he might be expecting. His solicitor may be able to advise him on this in more detail.
If your friend inherits money in future then the court may take this from him under the confiscation process. It would be wise for the relative to change his will to bypass him.
Hi David, I know that you are not a lawyer, but you nevertheless are a fountain of knowledge in these matters.
Am I correct in thinking that the power to impose a default term for unpaid accrued interest only came into force in 2015?
I do not think the position with regard to a default term for unpaid accrued interest has changed since PoCA 2002 came into force, see s12 and in particular subsection (4).
(1) The trial Judge who was the Confiscation proceeding Judge did not include a property which I was found unanimously not guilty of as a property obtained in accordance with section 10 of POCA 2002. The CACD in theEWCA Crim 1052 Judgment gave no reasons for including the said property as property obtained as a result or in connection with criminal conduct when I was given a Confiscation Order on 29th October 2013. On 29th July 2013, I sought permission from the CACD that: therein the said EWCA Crim 1052 Judgment there is a point of laws of public importance for the Supreme Court to certify. 0n 29th October 2013, the CACD gave no reasons in the EWCA Crim 1917 Judgment as to why my Supreme court application was refused. Is all this Lawful?
(2) On 23rd January 2017 the property ascribed to my value benefit and realisable asset by paragraph 51 to 56 of the said EWCA Crim 1052 Judgment in the afore mentioned CACD Confiscation order dated 29/10/13 was given to a 3rd party by the High Court Chancery Division. Is all this Lawful?
(3) Does a court staff who is not a Judge have the Jurisdiction to correct errors in a Confiscation Order and continuously put the same date of issue on the said order?
You need advice from a lawyer. I am not a lawyer (I am an accountant).
Taking the third point first – it appears that the confiscation order was made on 13 April 2012. That is the date of the confiscation order. I understand that the order has subsequently been varied (some of the figures have changed) but the date the order was made remains 13 April 2012.
With regard to the second point, I would expect that the High Court order of 23 January 2017 has resulted in a reduction in your available amount. You need to talk to a lawyer about now making an application to the Crown Court under s23 PoCA 2002 for a (further) variation to the confiscation order made on 13 April 2012 (with the aim of reducing the amount you are required to pay under the confiscation order).
With regard to the first point, the confiscation order has already been the subject of an appeal to the Court of Appeal. In preparing for that appeal you were assisted by experienced counsel (Mr Ivan Krolick) who has dealt with a number of significant confiscation cases in the Crown Court, Court of Appeal and Supreme Court. In 2013 the Court of Appeal refused you permission to appeal to the Supreme Court. You appear to have exhausted your rights of appeal in UK courts in relation to the confiscation order.
Starting with your final point concerning a re-opening of the previously concluded appeal to the Court of Appeal, Criminal Division, I would draw your attention to R v Yasain  EWCA Crim 1277. You could ask the Criminal Cases Review Commission to look at your case. They might decide to take the case back to the Court of Appeal. In the absence of that, and in the absence of some sort of procedural irregularity (such as failing to notify the defendant of the date of a hearing, resulting in him failing to attend or be represented at the hearing) it is difficult to see that you have any appeal options left in the UK courts.
What you seem to be saying is that the Appeal Court came to the wrong conclusions when it considered the evidence and the law – and that you have suffered an injustice as a result. I am not a lawyer, but I do not think that would be regarded by lawyers as sufficient grounds to return to the Court of Appeal and ask them to reopen your appeal (which has previously been heard by them and concluded).
With regard to an application under s23, I was not suggesting such an application would or could affect your benefit figure. What I was suggesting was that an application under s23 could affect the amount you are obliged to pay under the confiscation order. That would be achieved by reducing the figure of your available amount. The value of the property in question would continue to be an element in the benefit figure, but could be excluded from your available amount. If that resulted in a reduction in your available amount then that, in turn, could lead to a reduction in the amount you are required to pay (and possibly a reduction also in the default sentence). I would advise you to see a lawyer to discuss this further.
I thank you for the reply of 27 February 2017, in view of the fact that you are not a Lawyer, your commonsense approach to the matter I state is valuable. On the Criminal Cases Review Commission the least said the better. Bringing that body in to this forum will pollute the debate. Moving on to the s.23 POCA application you referenced in your response to remove the equitable value of the property which the order dated 23/01/2017 of the High Court Chancery Division state I don’t have an equitable interest but the judgement of the Court of Appeal Criminal Division (paragraph 51 – 56  EWCA Crim 1052) state I do have an interest. The issue is this: If a person Knows or believes that an order or judgment of a Court is wrong then that person cannot use the said judgement or order in any other way than his/her belief or knowledge. The bigger picture I believe is this. The R – V – Waya judgement concludes that when the value benefit of a confiscation order is erroneously applied then that said confiscation order is not proportional and has given an effect to a violation of A1P1 (Article 1 Protocol 1 of the european convention on human rights). On reading the R v Yasain  EWCA Crim 1277 judgement the Court of Appeal Criminal Division has to amend its error in paragraph 51 – 56  EWCA Crim 1052 judgment due to the order of the High Court Chancery Division dated 23/01/2017. I agree with paragraph 2 of your response but its Highly likely I will do the application as a litigant in person.
Your son should speak to the solicitor or barrister who assisted him in presenting his appeal. Alternatively the prison should be able to tell him his new release date. I am an accountant, not a lawyer. My understanding is that his new release date would be 52 days later as a result of a ‘loss of time’ order of 52 days under s29 Criminal Appeal Act 1968, but he should check with his lawyers or the prison.
hi i have a confiscation order made againts me on the 2nd February 2015, i am currently in default, this is a complex matter as a realisable assets a family home with my mother a 50% share holder and my wife has a third-party interest Claim. the available amount was £245k. minus £83k sized by police. which leaves £162k,initially at court on the above date i did not agree with the above realisable amount but there was a confusion with the instruction by my barrister and the order was made. i am enable to satisfy the order because my mother does not want to sell and my wife is claiming third-party interest on my share of 50%, i have been paying £100 pounds a month towards the order. i am trying my best what do i do. can you please explain a default term is treated as a punishment even when a person has tried in every way possible. and what is the area of law. Thank you.
You need legal advice from a solicitor or barrister (I am an accountant, not a lawyer).
That legal advice may include reference to the case of R v Modjiri  EWCA Crim 829 and to the provisions of s23 PoCA 2002.
It is not the case that where a sum has been ordered but has not been paid that the Magistrates’ Court will automatically activate the default sentence. The Magistrates will have to consider whether sending you to prison would be the right thing to do in all the circumstances.
The Court should have decided a benefit figure, an available amount figure and an amount to pay. Payment might be required immediately, or all or part of the payment could be delayed by up to 3 months (initially).
The court should not have made the order without him being there unless he had refused to attend or he had agreed to the court making the order in his absence.
He should talk to his solicitor or barrister about an appeal straightaway. The appeal forms have to be submitted to the court within 28 days of the date the court made its order.
Talk to your solicitor. You need to apply to the Crown Court for a further 3 months. You can do that now if you are able to show good reason why it will take longer than 3 months to pay. Don’t wait until the 3 months are up.
I’m sorry, I only deal with cases in England & Wales.
my ex husband served a 1 year default sentence in 2008 for sum of 170,000. he now lives in a council flat and i still live in the family home payin just the interest on the mortgage, live with 3 children, one is disabled, there is about 20 thousand equity in the home but vast amount owed to mortgage company, my ex has received this week a review of his earnings to see if he can pay back more off the confiscation, he currently pays 100 pounds a month, my question is can i as a named joint owner of the family home be forced to sell even though the amount available would be small.
You need to talk to a solicitor about this. I am an accountant not a solicitor. For what it’s worth, my understanding is that (in England and Wales) you could be forced to sell the house. However there may be other solutions open to you which would avoid that happening, for example you could buy your husband’s share in the house if you could get the £10,000 to pay him what it is worth (and if the mortgage lender would agree to you doing that).
I would not recommend a person in this situation to buy a property (or indeed any other asset of value).
The position is that the Crown can apply to the court (at any time) under s22 PoCA 2002 to have the court consider the defendant’s current available amount and order him to make a further payment under the old confiscation order.
If the CPS somehow got to know that someone with a confiscation order had sold a property (and it is straightforward for them to find out) then they may well make an application under s22.
I would need more details to be able to advise you properly. On the face of it, the order requires your husband to pay – not you. The likelihood is that if he does not pay on time then interest will be added to the amount due. He may ultimately be at risk of going back to prison if the order remains unpaid. The court usually specifies a “default sentence” – he would have to serve half of that inside.
Whether the court can force the sale of the house depends on a few things. The first is who owns it – you, him or both of you?
The second is whether the court has decided that he has made any gifts to you.
If you are worried you might be able to get an initial free interview with a solicitor, or your husband’s lawyers (who dealt with the variation) may be able to help, or you may get help from a Citizens’ Advice Bureau.
I have a POCA order against me. £76K Originally. Got it varied down to £59K also default sentence changed from 12 to 9 months..I paid £33K off or 61%. Remaining balance tainted gift accepted at crown crt by Judge that I had done all that could be reasonably expected of me to get the money/assets back from ex GF in Romnainia. Also commented that “I should not be punished further for this amount outstanding” Now at enforcement hearing…Iv just finished 6 year sentence…3 months out from prison…cant get job and im living off universal tax credits. I have no money or assets to sell and no family or friends that will lend me the money has district judge at enforcement hearing suggested I should try and borrow money off of to pay fine!! Iv asked my son and duaghter…they have said wont help me pay a debt that caused them top go into care!! I have no one to turn to…Judge said I would have to pay £50 per month for 3 months then a further hearing to see if my financial position improves and to give me more time to think seriously how I pay the amount outstanding!!! My position will not improve over such a short period of time maybe over a period of 3-6 years it may do!! My question is where do I take this next? Am I to be punished for being poor? Max default sentence now after previous payment is 3 months or 45 days inside time!! Im barley able to live on the bennfits im receiving…yet they want me topay £50 for next 3 months which I can not afford to do…but the interest alone is £5.90 per day….what are my realistic options with the court…is it better to just serve default sentence of 45 days so that’s not hanging over my head anymore…im told that I cannot be put back in prison for the amount owed again…is this true? So is just serving the default sentence an option? even though I still owe the money I cant be put back in prison for it!! Im also needing bankruptcy coz I owe the banks £250K credit card and overdraft debts!! so im not in a position to pay anyone…this is madness…what are my options?
You should speak to a solicitor. I would expect you would be eligible for assistance under Legal Aid. The default term calculation should be based on the amount outstanding EXCLUDING ANY INTEREST. The idea of the threat of the default sentence is to encourage you to pay what you can. It seems you have already done that, so the threat won’t work in your case. Get advice from a solicitor.

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