How Phil Ivey Basically Altered the Idea of Dishonesty in English Criminal Law

The card game Punto Banco (a kind of baccarat) is a straight game of possibility. Or at least it must be, according to the UK Supreme Court, who found that Phil Ivey, a legend in the expert gambling world, cheated Crockfords Casino of ₤ 7.7 m by utilizing a strategy referred to as “edge finding”. In choosing whether the idea of dishonesty was an important aspect of unfaithful (it found it was not), the Supreme Court seized the day to change the criminal law and eliminate a simply subjective component from its meaning. In one easy hand, the Ghosh test, which has represented recognized law for the previous thirty years, is gone.

Mayfair, August 2012

Phil Ivey is called the “Tiger Woods” of the gambling world. In August 2012 he invested 2 days at Crockfords Casino in Mayfair playing Punto Banco, and throughout that time made use of a weak point in the manufacture of a few of the playing cards that were being used in the game. The weak point lay in the printing of the back of the cards (the information on among the longer sides were plainly different to the other long side). Without touching the cards, but through using an unwitting croupier, he crafted high-value cards (7, 8 and 9) to be put in the playing shoe with a specific side facing him (instead of all the others, which were dealing with away). He won ₤ 7.7m but the casino’s private investigators consequently identified the ploy and chose not to pay up

During prolonged litigation that went all the way to the UK’s Supreme Court, Ivey never ever rejected that he had been “edge-spotting”– the term used to recognize the high-value cards. He kept that it was not unfaithful but explained it as genuine gamesmanship (undoubtedly the High Court judge, Mitting J, who heard live proof from Mr. Ivey found him to have offered a factually frank and sincere account of what he had done). The question that mattered was not whether the Supreme Court believed it amounted to unfaithful, which (concurring with the lower courts) it did.

What does this relate to dishonesty in criminal cases?

As part of the appeal, the Supreme Court needed to choose whether the principle of unfaithful (within the boundaries of the Gambling Act) included an aspect of dishonesty. It found, rather controversially, that it did not (although offenses such as Cheating the Revenue do need the prosecution to show dishonesty). The case, in theory, may have ended there. The Supreme Court took the chance to look at the idea of dishonesty and the Ghosh test, which had been settled criminal law for over thirty years.

What Was the Ghosh Test?

The case of R v Ghosh was reported in 1982 when Mr. Ghosh, a cosmetic surgeon, made claims for payments for services he had not offered. Whilst his own appeal was dismissed, a two-stage test progressed which needed the tribunal to examine:

(i) Whether in its judgment the conduct suffered was unethical by the ordinary goal requirements of normal affordable and sincere people; (if the response to that was no, the accused would be acquitted).

(ii) If the response to (1) was “yes”, the jury would then go on to think about whether the accused should have understood that regular truthful people would concern his behavior as deceitful (he would be founded guilty just if the response to question (2) was “yes”.

The Supreme Court in Ivey felt that this produced the unpalatable situation whereby the more distorted the accused’s requirements of sincerity, the less most likely he was to be founded guilty. It also felt that the idea of dishonesty need to be specified in the very same way as in civil law (where there is no such subjective limb).

The Supreme Court judges for that reason, all, chose to eliminate the 2nd limb of the Ghosh test, efficiently eliminating the simply subjective aspect. Rather, the phrasing they chose was as follows:

” When dishonesty remains in question, the fact-finding tribunal should initially determine (subjectively) the real state of the individual’s understanding or belief regarding the truths … When as soon as his real mindset regarding understanding or belief regarding truths is developed, the question whether his conduct was sincere or deceitful is to be identified by the fact-finder by using the (goal) requirements of normal good people. There is no requirement that the offender should value that what he has done is, by those requirements, deceitful.”.

Subjectivity has not been eliminated from the formula– the tribunal should think about the accused’s truly held belief or understanding as to the realities, before going on to choose whether the regular male would think about the conduct dishonest. It does get rid of the possibility that somebody with no real ethical compass may successfully be able to get a “prison out of free” card.

Where Does This Leave Us Now?

Accused in criminal cases including a component of dishonesty (for instance conspiracy to defraud– the charge used in the LIBOR cases– theft, scams by incorrect representation) might need to re-think how they argue their defense. They might not have the very same chance to persuade the jury that they did not understand that regular people would have found their actions dishonest. The issue of whether conduct was unethical goes to the very heart of the procedures oftentimes (such as the rate control in LIBOR). The need to show dishonesty about the criminal cartel offense under the Enterprise Act 2002 was gotten rid of in 2014; to be held criminally responsible for cartel conduct not needs dishonesty. The borders for showing liability are being rolled back. In such cases, the district attorneys now hold the aces.