Fraudulent Trading Solicitors
Fraudulent trading solicitors Birmingham
Fraudulent trading is a serious criminal offence under the UK legal system, and it can result in severe penalties for those found guilty. If you are accused or suspected of having committed fraudulent trading, it is essential to seek legal advice from an expert criminal defence solicitor. Contact us today to find out how we can help secure your interests.
What is fraudulent trading?
Fraudulent trading occurs when a company’s directors or management engage in dishonest or deceitful activities and do so with the intent to defraud creditors, investors, or the company itself. They may do so by making false representations, concealing financial information, or manipulating company assets for personal gain. The key element that distinguishes fraudulent trading from other forms of financial misconduct is the presence of intent to deceive or defraud.
Fraudulent trading is primarily governed by two pieces of legislation in the UK: the Companies Act 2006 and the Insolvency Act 1986. Section 993 of the Companies Act 2006 outlines the offence of fraudulent trading, while Section 213 of the Insolvency Act 1986 deals with fraudulent trading in the context of company insolvency.
Examples of fraudulent trading are:
- Trading knowing that invoices will not be settled
- Trading knowing that invoices will never be settled
- Disposing of company assets at an undervalue before the company’s liquidation is announced
- Failing to inform creditors of the fact of insolvency and allowing the business to continue trading
Potential Penalties for Fraudulent Trading
The penalties for fraudulent trading can be severe, reflecting the seriousness of the offence. Upon conviction, an individual may face:
A maximum sentence of up to 10 years in prison may be imposed, depending on the severity of the offence and the level of involvement of the accused.
Courts can impose unlimited fines, determined by the extent of the financial loss caused by the fraudulent activities.
Directors found guilty of fraudulent trading can be disqualified from acting as company directors for up to 15 years.
Confiscation and compensation orders
Courts may order the confiscation of assets gained through fraudulent trading and require the accused to pay compensation to the affected parties.
Some potential defences against fraudulent trading charges include:
Lack of intent
To secure a conviction, the prosecution must prove that the accused had the intention to defraud. It may be possible to argue that the accused acted in good faith and without the intent to deceive.
It may be possible for the defence to argue that the accused made an honest mistake, believing their actions were legitimate and within the bounds of the law.
Duress or coercion
If the accused was forced or coerced into participating in fraudulent activities, a defence solicitor can argue that they should not be held responsible for their actions.
Fraudulent trading is a serious offence that can lead to severe penalties for those found guilty. If you are facing such allegations, it is essential to seek legal advice from an expert criminal defence solicitor to protect your rights and ensure the best possible outcome.
Contact our fraudulent trading defence solicitors
If you are accused of fraudulent trading, are being investigated or are required to attend an interview under caution, or are being prosecuted, we can help and ensure that you have the representation you need. It is vital to have an expert criminal defence solicitor on your side.
We have many years of experience in representing clients, working to provide a robust defence and achieving the best possible outcome.
We understand how important it is for you to have strong guidance and support at what is likely to be a difficult time. We have a strong track record in providing outstanding criminal defence and you can be assured that we will leave no stone unturned in dealing with your case and any allegations or charges against you
If you ask us to represent you, we will step in immediately to provide a sound defence. We will work to have charges against you dropped where possible or to secure an early acquittal. Where necessary, we will raise any points there may be in mitigation.
Our advice to you will always be clear and practical. We understand how stressful and disruptive it can be to face criminal allegations and we will ensure that you have the support and guidance you need.
If your case reaches court, we will ensure you have the strongest possible case and that you are represented by an expert advocate.
Fraudulent trading is a complex area of law and it is important to speak to an expert fraudulent trading defence solicitor in Birmingham, call us on 0121 309 0013, email us at firstname.lastname@example.org or fill in our contact form.