The Fraud

Our client was one of fifteen defendants brought before Southwark Crown Court charged with conspiracy to commit mortgage fraud, amounting to approximately £50 million, committed between 2006 and 2007, when eleven loans were obtained from Barclays Private Clients International Ltd  (‘the Bank’) based in the Isle of Man.

The funds were used for the purchase or re-mortgage of properties within the UK and had been obtained following the presentation of falsely inflated property valuations and false information about the financial position of the applicants.

Our client was the director of a company which re-mortgaged an hotel in Brighton for £1.75 million through the provision of false information to the Bank.

The Negotiations

Following detailed negotiations with the Prosecution, our client accepted the lesser charge of “obtaining a money transfer by deception”upon the basis that:

  • the original more serious charge of “conspiracy to defraud” was dropped
  • the prosecution agreed not to proceed against our client’s wife and
  • confiscation proceedings would not be pursued.

Sentencing Considerations | Kangs Criminal Solicitors

When sentencing in cases of mortgage fraud, the Judge must consider the “risk of loss” that was present and not simply the “actual loss”that resulted from the fraud.

As is often the case in mortgage fraud of this nature, there may not have been any actual loss because the mortgage lender had been repaid in full.

Risk off loss requires consideration of the likelihood of harm occurring and is regarded as being less serious than actual or intended loss.

As our client had repaid the Bank in full and there was no actual loss, it was successfully argued that the sentencing Judge could assess the level of the crime more favorably within the sentencing guidelines, and which was extremely beneficial for our client.

The Sentence

Our client was delighted to avoid an immediate custodial sentence when his sentence of fifteen months was suspended for a period twelve months.  

How we can help? | Financial Fraud Solicitors

At Kangs Solicitors we are able to offer a wealth of experience in defending clients accused of involvement in all aspects of financial fraud and money laundering.

We have a successful specialist fraud department with a team of solicitors dedicated to defending allegations of this nature. We are ranked by Chambers & Partners in Band 1 nationally for our work in defending fraud cases.

Should you become involved in or be accused of any fraudulent activity and require any guidance and advice then please do not hesitate to contact any of our below mentioned solicitors who will be pleased to meet you for an initial free consultation.

If you have been invited to attend an interview with the City of London Police, The Serious Fraud Office, The Financial Conduct Agency or any other Police force or Government agency we can provide a specialist Solicitor to represent you.

Who do I need to contact for assistance? | Kangs Fraud Team

Please do not hesitate to contact one of the following for an initial consultation:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171020 7936 6396 | 0121 449 9888

Tim Thompson
tthompson@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396 | 07989 521210