Stephenson Harwood acts with Interpath against fraudster

Stephenson Harwood LLP has been working alongside court-appointed Receivers from Interpath to recover the realisable property of thrice-convicted fraudster, Gerald Martin Smith, and to realise certain valuable properties in Bloomsbury, London.

On 6 December 2024, Mr Justice Henderson gave judgment and imprisoned Dr Smith for a further 13 months for contempt of court in obstructing the Receivers from taking possession and selling such receivership property. The imprisonment is in addition to the 18-month sentence that Dr Smith is currently serving for fraudulently obtaining a COVID bounce back loan.

Dr Smith sought to obstruct the Receivers from taking possession of one of the Bloomsbury flats by arranging for a long-term friend, Dr Robert Morris, to transfer ownership of the flat to a British Virgin Island’s company that Smith himself controlled. Dr Smith then changed the locks and arranged for two “tenants” to occupy the flat to further obstruct the selling of the property. In addition, Dr Smith, who resided at another apartment in the same building, reneged on his promise to the Receivers and the Court to give up possession and embarked on abusive litigation, for over 12 months, to prevent the Receivers from obtaining control.

The Receivers, assisted by their solicitors from the firm, persuaded Dr Morris to tell the truth about the arrangement. He provided a witness statement in which he admitted that he had been "duped" by Dr Smith, as well as providing copies of emails and text messages, in which Dr Smith asserted that he wanted the assignment to "help me with the battles for control of this asset." As for Dr Smith, the Receivers disposed of his application and evicted him.

The Receivers provided copies of Dr Morris' evidence to the Serious Fraud Office and an affidavit giving a full account of Dr Smith's actions in support of the SFO's ultimately successful application to commit Dr Smith to prison.

Responding to the conviction, David Standish, Managing Director at Interpath, said: “The Court has demonstrated that obstruction of the Receivers in discharge of their duties will be taken very seriously, and the Court will not hesitate in imposing hefty terms of imprisonment on those who wilfully impede us. Let this be a salutary lesson to those involved in this matter.”

David Standish added: “We are grateful for the expertise and thorough understanding of the complex legal issues at play that Tal Goldsmith, Max Darke and their colleagues at Stephenson Harwood have demonstrated throughout this matter. Together, we have executed an efficient and highly effective strategy to put an end to Dr Smith’s repeated attempts to frustrate the Receivership.”

The team from Stephenson Harwood is led by litigation partner Tal Goldsmith and managing associate Max Darke.