Fraudulent Trading Solicitors

More about Fraudulent Trading Solicitors

Under section 213 of the Insolvency Act, if a company is wound up and it appears business has been carried out with the intention of defrauding creditors, the liquidator will investigate the individuals responsible for the running of the business and investigate the businesses activities.

Any person who knowingly continues to trade dishonestly to defraud, commits the offence, so it is not just company directors that can commit fraudulent trading. Any person who knowingly continues to trade dishonestly to defraud, commits the offence, so it is not just company directors that can commit fraudulent trading.

If a company has been set up with the intention to defraud creditors, this is often referred to as either:

Long firm fraud - small trading accounts are set up to build up trust and a good credit rating with a supplier before a large quantity of goods is ordered with failure to pay. Or; Short firm fraud - there is no attempt to build trust, goods are simply ordered but never paid for. Commercial and business fraudulent trading in the UK is wide-ranging and can involve investigations and prosecutions brought by a number of different Government agencies, including HM Revenue and Customs, the Crown Prosecution Service (COS, the Financial Services Authority (FCA) and the Serious Fraud Office (SFO), to name but a few.

Inevitably, investigations conducted by the Police, in conjunction with the Serious Fraud Office, into complex allegations of fraud can be lengthy and have a devastating impact upon the individuals and businesses who are suspected of involvement in fraudulent and wrongful trading.

What happens during an investigation for fraudulent trading?

What happens during an investigation for fraudulent trading?

During an investigation into a fraudulent trading criminal offence, the police may request a search warrant to search your home, workplace or vehicle to secure evidence against you. The police may also seize any mobile or electronic devices for up to a few months whilst they search for evidence of fraudulent trading. You may also have your assets frozen however by seeking legal advice as early as possible, your solicitor will work closely with you to remove any such orders.

What is the sentence for fraudulent trading?

What is the sentence for fraudulent trading?

If following a trial, a jury finds you have acted dishonestly and you are found guilty of fraudulent trading, you will likely be facing a lengthy prison sentence of up to 10 years imprisonment. If this is not your first offence for fraudulent trading or similar, or if you have used a false identity, you will receive a lengthier sentence. The court could also impose an ancillary order which could be restrain order, reparation order, financial reporting order, confiscation order or you may be disqualified from acting as a company director in the future. You may also have to compensate for any loss caused as a result of the fraudulent trading.

If you or someone you know is facing allegations of wrongful and fraudulent trading, speak to a fraud solicitor today on 01772 220 022 or make an online enquiry here.

Our dedicated Fraudulent Trading Solicitors Team

Craig Liversidge.jpg

Partner, Crime

Craig Liversidge


Partner, Crime

Craig MacKenzie


Consultant, Crime

Daniel King

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