SFO chief Karen Chang has made significant strides in redefining the agency’s priorities since her appointment in 2022 and she has lawyers in the agency’s sites so far as the fight against fraud is concerned.
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An article in Law News reported that Power Lawyer Chang has positioned lawyers as primary targets in the fight against fraud.
In a candid interview, she said that lawyers possess a unique level of trust in society, which can be exploited by those seeking to commit fraud.
By disrupting the actions of professional enablers, Chang believes the SFO can effectively reduce fraudulent activities.
Chang said that the health of New Zealand’s business environment hinges on trust and vigilance against fraud.
“People want to conduct business,” she states, highlighting the necessity for a robust framework to deter corruption and maintain investor confidence.
Leading the SFO Charge
Upon taking charge of the SFO, which operates with a relatively small team of about 80 staff members, Chang introduced a mission focused on “disruption and deterrence.”
The strategy prioritizes impactful cases over sheer volume, aiming to send a clear message that fraud will not be tolerated.
A notable case under her leadership involved lawyer Francis John Peters, who was sentenced to home detention for committing mortgage fraud, a case that exemplified how breaches of trust within the legal profession can have severe repercussions.
She pointed out that even inadvertent complicity can lead to significant legal consequences.
She encourages her colleagues to trust their instincts and perform due diligence, even if it may inconvenience clients. “No business or convenience is worth your professional integrity,” she warns.
Chang also discussed the complexities of international business transactions and the potential pitfalls lawyers may face when navigating foreign markets, stressing the importance of understanding local laws and maintaining compliance to avoid unintentional involvement in corrupt practices.
The SFO was established following New Zealand’s 1987 stock market crash to tackle financial fraud on an unprecedented scale. With significant investigative tools at its disposal, including the ability to compel interviews but lacking arrest powers, the SFO collaborates closely with other agencies like the police and Financial Markets Authority (FMA) to ensure a cohesive approach to tackling financial crime.
Chang notes that technology has transformed how fraud is perpetrated and investigated. The SFO now manages vast amounts of data—74 terabytes—requiring sophisticated electronic forensics capabilities to trace digital scams effectively.
She acknowledges that while technology has made it easier for scammers to operate, it has also enhanced the SFO’s investigative abilities.
“The triumph of evil is when good people do nothing.” This conviction drives her work at the SFO, where she aims not just to enforce laws but also to contribute meaningfully to society’s well-being.
