In a recent article, the nature of the offence of Fraudulent Trading was explained.

Kangs Solicitors now looks at the sentences that can be imposed for those who are guilty of the offence.

The Courts | Kangs Criminal Solicitors

  • Imprisonment and fines:

The Companies Act 2006 provides that sentencing for Fraudulent Trading can be dealt with either by the Magistrates’ Court or the Crown Court.

In the Magistrates’ Court, the sentence can be up to 12 months imprisonment and or a fine.

However, due to the amount of money usually involved, most prosecutions are dealt with by the Crown Court   where the maximum sentence that can be imposed is ten years imprisonment and or a fine.

The sentencing range in such cases can vary significantly depending on the facts of each case with, of course, the most serious attracting heavier sentences.

A lower sentence may be appropriate, where, for example, a company had previously been conducted as a legitimate and viable business but it encountered financial problems which the directors had attempted to overcome through continued trading but had failed to do so in circumstances where they had incurred further debt which they could not discharge.

If there had been no overt dishonesty, a Court may deal with them more leniently.

  • POCA 

Confiscation Proceedings designed to secure the recovery of all financial gains arising from the criminal activity may follow.

  • Director Disqualification Proceedings

The Courts may take the view that the conduct of one or more of the directors leading to the incurrence of the debt was such that such person(s) should be disqualified from holding any official position within a company for a specified number of years.

Trading Standards Prosecutions | How Kangs Solicitors Can Help

Over the years we, at Kangs Solicitors, have witnessed an ever increasing number of fraudulent trading cases being prosecuted by the authorities.

It is very important that you obtain legal advice at the earliest possible moment to ensure that the best available outcome can be achieved for you.

Our team of solicitors has a proven track record of assisting many businesses to achieve the right result following investigations of fraud of every nature.

We can advise you and your business in relation to such allegations and can represent you at all stages from interview to trial.

Our Proven Track Record | Kangs Fraud Solicitors

Previous cases conducted by us include:

Contact Us | Kangs Business Crime Solicitors

Our team is here to help you.

Please do not hesitate to contact our team through any of our below mentioned solicitors who will be pleased to provide you with an initial free consultation.

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
07779 055907 | 0121 449 9888 | 020 7936 6396

Frances Murray
fmurray@kangssolicitors.co.uk
020 7936 6396 | 07989 521210

Tim Thompson
tthompson@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396 | 07710 67 77 67