Remedies Up to the DPP: A Guide to Pursuing Fraud Claims in the Cayman Islands

In the pursuit of fraud claims, private litigants may have different priorities than the Director of Public Prosecutions (DPP). While maximizing recoveries is a crucial goal for individual plaintiffs, the DPP’s primary objective is to secure justice and uphold the law. This distinction can lead to differences in approach and strategy.

Funding Challenges

The Cayman Islands has recently introduced the Private Funding of Legal Services Act 2020, which has revolutionized claim funding. The abolition of maintenance and champerty offenses enables lawyers to accept cases on a conditional or contingency fee basis, opening up new opportunities for litigation funding and innovative fee structures. This development can be expected to enable claims that may not have been viable otherwise.

Coordination Across Jurisdictions

Fraud cases often involve defendants, evidence, witnesses, and assets scattered across multiple jurisdictions and time zones. The Cayman Islands has established mechanisms to facilitate coordination and cooperation with foreign authorities, ensuring a more efficient and effective pursuit of fraud claims.

The Role of Technology

Technology plays a crucial role in untangling the web of deceit created by fraudsters. Lawyers and investigators must remain aware of advances in investigative technology, such as artificial intelligence applications for document review, which can significantly reduce manpower requirements during the discovery stage.

Digital Currencies: A Game Changer?

The introduction of the Virtual Asset (Service Providers) Act, 2020 has established a framework for the supervision and regulation of virtual asset services businesses in the Cayman Islands. As the industry grows, so too may connected fraud litigation. Recent English court judgments have demonstrated that traditional remedies against fraudsters, such as freezing orders and substituted service solutions, are also available in relation to digital currencies.

Recent Developments

• The coming into force of the Private Funding of Legal Services Act 2020 has introduced much-needed clarity on claimant’s ability to negotiate and agree litigation funding arrangements.
• The jurisdiction has expanded public access to corporate records, including the names of current company directors and online access to the register.
• However, a recent European Court of Justice ruling has raised questions about the implementation of public beneficial ownership registers.

In conclusion

Pursuing fraud claims in the Cayman Islands requires a deep understanding of the jurisdiction’s laws, regulations, and technological advancements. Claimants must be aware of the remedies available to them and the coordination mechanisms in place across jurisdictions. As the industry continues to evolve, lawyers and investigators must stay up-to-date with the latest developments to succeed in their pursuit of justice.