Allegations of ‘Cash for Crash’ Fraud Withdrawn
KANGS has successfully defended our client who had been charged, along with several other defendants, including family members, with various allegations of fraud. These charges included conspiracy to defraud, conspiracy to cheat the Public Revenue, fraudulent trading and failure to keep proper accounting records.
The prosecution was based on allegations of an alleged ‘cash for crash’ fraud conducted by the defendants through a number of companies providing Accident Claims Management, Vehicle Recovery, Hire and Storage services.
The Police investigation and subsequent prosecution spanned a period of nearly nine years and has been particularly stressful for our client. At the outset of the investigation, our client was newly qualified as a solicitor and was only registered as a director of one of the companies involved for a few months before resigning. Throughout this period, our client had always strenuously maintained his innocence.
Although the Trial ran for a period of approximately three months, the whole period was occupied by legal argument surrounding technical issues including the failure of the Prosecution to properly discharge its Formal Disclosure of Documents Process resulting in prejudice to all the defendants.
John Veale of KANGS outlines the circumstances and the case.
Conspiracy to Defraud
Criminal Law Act 1977 - section 5(2).
Although the offence of conspiracy to defraud derives from the ‘common law’ it is now specifically preserved by the Criminal Law Act 1977. It can only be prosecuted before a Crown Court which may impose upon a convicted person a variety of sentences including a prison sentence of up to ten years, fines, confiscation and compensation orders.
There is no precise definition for the offence which provides it with a wide range and scope, unlike an offence created by statute, which is restricted by its statutory definition.
A charge of conspiracy to defraud does not have to be based on a substantive criminal offence and it is not a requirement that any loss has to derive from its commission. However, the following elements must be proven:
- an agreement between two or more people, which may include persons unknown,
- an intention to defraud,
- dishonest intent,
a likelihood that the intended conduct may cause financial or other loss to the proposed victim, although such loss does not have to occur.
The Circumstances of the Case
The Prosecution alleged that financial gains had been fraudulently made through the activities of a number of companies involved in Motor Accident Management Services provided to customers who had been involved in motor vehicle accidents. These activities alleged included preparing and submitting false Motor Accident Reports and fictitious and exaggerated claims in respect of post-accident services such as the provision of vehicle recovery, hire, storage and repair, as well as under declaring profits to HMRC.
Our client had only been involved as a director in one of the family’s companies for a very short period from formation. Whereafter, he had resigned and had no further involvement.
During the course of the vast amount of document examination which had to be conducted by legal representatives on behalf of all defendants, it became apparent that the Prosecution had failed to secure permission from the County Court for the use of essential evidence which it held.
The Prosecution failed to properly conduct its disclosure obligations and this resulted in intensive representations being made to the court over a period of approximately three months.
Eventually, the Prosecution concluded that it had no alternative other than to declare that it would not be presenting any further evidence. Consequently, the Trial was terminated and not guilty verdicts were entered on the Court’s records for all defendants in respect of all counts.
How We Assisted Our Client
Over a period exceeding five years the volume of work conducted on behalf of our client was extremely substantial but it included:
- conducting numerous meetings and telephone calls with our client discussing every aspect of the case as it developed,
- considering and scrutinising the evidence served by the Prosecution, together with the very extensive unused material,
- preparing defence documents and scheduling all trading events and necessary Timelines,
- attending to all requisite court documentation and preliminary Hearings,
- instructing appropriate forensic accounting and handwriting experts,
- identifying and instructing King’s Counsel to represent our client at Trial,
- liaising with all other parties,
- engaging in numerous conferences with King’s Counsel, Junior Counsel and our client.
Success & Relief
Given the extensive duration during which our client has faced the stress and pressure of these allegations, which he has vehemently opposed from the outset, exacerbated by the fear for his professional reputation, our client was understandably overjoyed with the outcome achieved on his behalf.
How Can We Help You?
The team at KANGS is accustomed to representing clients faced with allegations of substantial financial fraud and conspiracy charges. We have also been involved on many occasions in Trials where the failure of the Prosecution to properly observe its disclosure obligations has been intensely challenged, as in the case reported here.
If you require any advice or assistance in relation to any allegations of financial criminal activity, please feel free to contact our team through any of the following:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
Top ranked by legal directories Chambers UK and the Legal 500
