Fraudulent Trading

Fraudulent trading can cover a wide range of scenarios involving both businesses and individuals and can affect those who find their businesses failing or in financial crisis.  It is common for a company which has been wound up and/or failed to be charged with offences, but the question is whether the individuals have been naïve in their business dealings or if there has been some dishonesty. 

Businesses may have got into financial difficulties but continued to trade despite this, knowing that they could not pay their creditors, often hoping that they can sort the problems out. The question will be whether they have carried on for trading for too long and if so they could be charged with fraudulent trading.  

S993 Companies Act creates offences which mean the prosecution will have to prove that they carried on their business intending to defraud the company’s creditors, as they knew that ultimately they could not pay.  It is also an offence to conduct a business for a fraudulent purpose, and every party who had knowledge about that could also be committing an offence, including employees.  

The Department for Business, Energy and Industrial Strategy is responsible for many such investigations and will often will seek a winding up order and disqualification proceedings to ensure the offending Directors cannot operate companies again.

Operating nationwide from our bases in the City of London and central Manchester Cunninghams are leaders in defending those accused of serious fraud and complex crime and are consistently ranked as a leading practice in these fields in all guides to the UK legal profession. Specialising in this work for over 30 years has resulted in an enviable network of experts, forensic accountants, QC’s and senior barristers to draw upon as we tailor our clients bespoke defence team

All our serious casework is led by a director with who you will have direct contact. If you are being investigated or have been charged with fraudulent trading it is important not to delay. Contact us and you will receive immediate expert advice from an experienced fraud defence lawyer.