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Fraudulent Trading

Fraudulent Trading and Wrongful Trading Defence Lawyers

The fraudulent trading solicitors at BKP Solicitors boast extensive experience in this intricate area of law.

Facing allegations or charges of fraudulent trading or creditor fraud can induce significant stress. It constitutes a criminal offense, with potential imprisonment of up to ten years for those convicted.

Fraudulent trading charges may target directors of insolvent businesses. 'Insolvent' refers to any business incapable of settling its debts. Upon insolvency, businesses must cease customer trading and prioritise creditor financial welfare.

Given the gravity of the offence and its potential penalties, individuals confronting insolvency charges often experience anxiety, fear, and uncertainty about their future.

If facing fraudulent trading charges, seeking assistance from fraudulent trading solicitors specialising in business crime is essential. Our firm has extensive experience providing tailored defences for such offences.

Over years of service, our specialist solicitors have successfully defended clients throughout the UK against fraudulent trading and creditor fraud allegations. Our experience suggests that most creditor fraud cases stem from mismanagement and optimistic intentions.

Whatever your situation, contact us today to consult with a member of our team.

What Does Trading Insolvency Mean?

Businesses declare insolvency when they cannot meet their debt obligations on time. Insolvency mandates trading cessation. Insolvency investigations, conducted by licensed practitioners, ensure companies safeguard debtors' interests.

If your company faces insolvency and an investigation looms, our fraudulent trading solicitors ensure compliance to avoid wrongful or fraudulent trading convictions.

What is a Fraudulent Trading Charge?

Fraudulent trading constitutes a criminal offense. After insolvency declaration or acknowledgment of imminent insolvency, directors must halt trading and prioritise creditor interests. Fraudulent trading occurs when directors knowingly continue trading, accepting credit supplies or customer orders despite being unable to repay creditors or fulfill orders.

Other actions constituting fraudulent trading include:

  • Failure to notify creditors of insolvency and allowing business to continue trading
  • Trading despite knowing invoices won't be settled
  • Selling company assets below market value before liquidation announcement

For a successful fraudulent trading charge, it must be proven that directors intentionally defrauded creditors or customers for personal gain by prioritising personal needs over creditor interests.

What is Wrongful Trading?

Wrongful trading is less severe than fraudulent trading, constituting a civil rather than criminal offense per the Insolvency Act of 1986 and the Companies Act of 2006. In insolvency scenarios, directors may be overly optimistic about their company's prospects, failing to grasp the gravity of their decisions.

Wrongful trading occurs when directors continue trading, hoping to salvage the company through revenue, rather than prioritising creditor interests. Though this still endangers creditors, it lacks fraudulent intent, necessitating legal support from wrongful trading solicitors due to potential extensive consequences.

What is Long Firm Fraud?

Long firm fraud involves specific trading fraud aimed at defrauding creditors and suppliers. Perpetrators establish a limited company to fulfill numerous small orders swiftly, building a positive credit rating. Leveraging this reputation, they order large quantities of goods without intending to pay debts.

What If I'm Arrested or Charged for Fraudulent Trading?

When facing arrest or charges for fraudulent trading or creditor fraud, representation by skilled, experienced fraudulent trading solicitors is imperative. UK laws governing fraudulent trading and creditor fraud are intricate, requiring solicitors versed in these matters.

If arrested, enact your right to remain silent until represented by a solicitor. While police stations offer duty solicitors, their lack of specialised training and experience in fraud law makes them unsuitable for such cases.

Our fraudulent trading solicitors possess comprehensive experience in handling fraudulent trading and creditor cases, representing clients nationwide to ensure fair treatment and avoid detrimental mistakes.

What is the Sentence for Fraudulent Trading?

Fraudulent trading carries a potential custodial sentence of up to 10 years. The severity of the sentence hinges on proof of deliberate, financially reckless behaviour detrimental to creditors and customers. Lesser offences involving smaller sums may result in two to three year sentences.

While we strive for the best outcome, we provide honest, transparent advice on likely sentences, considering mitigating circumstances.

What Mitigating Circumstances May Be Considered?

Mitigating factors may reduce sentences. Unforeseen circumstances, like the COVID-19 pandemic, may influence sentencing. Solicitors advocate for leniency, acknowledging directors' responsibilities but emphasising intentions and external factors.

What Will a Solicitor Do for Me?

Our solicitors leverage their expertise in fraudulent trading and creditor fraud laws to secure favourable outcomes. We:

  • Represent you during investigations and interviews
  • Conduct thorough case analysis, utilising forensic accountants if necessary
  • Communicate with insolvency practitioners
  • Provide clear, understandable legal advice
  • Offer options for your best course of action

Our experienced team is committed to helping you navigate insolvency or defend against criminal charges. Contact us today.

Contact Us

If under investigation for fraudulent or wrongful trading, contact our specialist criminal defense solicitors for expert advice. With over 25 years of experience, we offer relentless representation to clients across the UK, ensuring the best possible outcomes.

Trust BKP Solicitors when facing serious consequences. Contact us 24/7 for expert legal representation.

BKP Solicitors