Civil Recovery of Assets & Unexplained Wealth Orders
An Unexplained Wealth Order (UWO) enables enforcement authorities, such as the Serious Fraud Office (‘SFO’), to pursue funds which are suspected of representing the proceeds of crime.
Once an UWO has been issued against an individual, that person is required to explain the source of the suspicious wealth when it appears disproportionate to that person’s declared income.
In the recent case of Director of the Serious Fraud Office v Claire Schools [2025] EWHC 1146, the SFO successfully secured its first UWO along with a Property Freezing Order to prevent the suspicious assets from being sold.
Nazaqat Maqsoom of KANGS outlines the requirements for obtaining an UWO together with the circumstances surrounding this reported case
The Relevant Law
The Criminal Finances Act 2017 provides:
Unexplained Wealth Orders
The High Court may, on an application made by an enforcement authority, make an Unexplained Wealth Order in respect of any property, if the court is satisfied that each of the requirements for the making of the Order is fulfilled.
An application for an UWO must specify:
- or describe, the property in respect of which the Order is sought, and
- the person whom the enforcement authority thinks holds the property (‘the respondent’), which may include a person outside the United Kingdom.
An UWO requires the respondent to provide a statement:
- setting out the nature and extent of their interest in the property in respect of which the Order is made,
- explaining how they obtained the property and details of how any costs incurred were obtained,
- setting out such other information in connection with the property as may be specified in the Order.
Requirements for making of an Unexplained Wealth Order
When making an UWO the High Court must be satisfied that there is reasonable cause to believe that:
- the respondent holds the property, and
- the value of the property is greater than £50,000.
The High Court must be satisfied that there are reasonable grounds for suspecting that the known sources of the respondent's lawfully obtained income, would have been insufficient for that person to obtain the property.
The High Court must be satisfied that the respondent is a politically exposed person, or there are reasonable grounds for suspecting that:
- the respondent is, or has been, involved in serious crime in a part of the United Kingdom or
- a person connected with the respondent is, or has been, involved in serious crime elsewhere.
The Case in Focus
In 2022, Timothy Schools was convicted of multiple fraud-related offences and sentenced to a term of fourteen years' imprisonment.
Proceedings under the Proceeds of Crime Act 2002 (POCA) were commenced and it was determined that, the criminal benefit which he had derived from his crimes, exceeded one hundred and forty-six million pounds.
At that time, it was assessed that the assets available to settle the confiscation debt amounted to approximately one million pounds. However, the SFO believed substantial assets were available for confiscation and may have been concealed or transferred to associates of the defendant, including his former spouse, Claire Schools.
In 2018, Claire Schools acquired Hope Springs House, a property situated in the Lake District, for four hundred and thirty thousand pounds, with an estimated sum in the region of seven hundred and fifty thousand pounds spent on renovations.
The SFO suspects that the funding for both the purchase and the renovations derived from the defendant’s criminal activity and several fraudulent companies, including those involved in the sale of a chalet in France and dealings with several other properties.
The suspicions of the SFO are fuelled by Claire Schools having declared to HMRC minimal income since 2010.
When considering the Applications for an Unexplained Wealth Order and an Interim Freezing Order under the Proceeds of Crime Act (POCA), the court took into account Claire School’s lack of declared income and the fact that, despite their divorce, she and the defendant remain closely connected, with her attending regular prison visits and sharing living arrangements prior to his conviction.
As the result of the UWO issued against her, Claire Schools will be obliged to explain in detail the sources of the funding of the purchase of the Hope Springs House and its renovations.
In cases of this nature, the Interim Freezing Order will usually prevent the sale of the property without the consent of the SFO, thereby ensuring that the proceeds of sale cannot be dissipated.
How Can We Assist?
KANGS is able to provide advice and assistance to clients subjected to Unexplained Wealth Orders, Restraint Orders and Freezing Orders of every nature.
The team at KANGS is nationally recognised for its work involving every aspect of POCA and has been involved with many significant cases through the courts.
If you are, or anticipate becoming, involved in any financial recovery proceedings of any nature, our solicitors would be delighted to hear from you.
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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