Understanding Fraud | A Legal Perspective for Business Leaders
Allegations of fraud can pose significant legal, reputational and financial consequences for both individuals and businesses. Whether arising from internal misconduct or external scrutiny from authorities including the Serious Fraud Office (SFO), Financial Conduct Authority (FCA) and HM Revenue & Customs (HMRC), investigations demand a measured and expertly guided response.
At KANGS, we are consistently ranked in the highest tier for fraud and white collar crime defence by both the Legal 500 and Chambers UK. This recognition reflects our consistent history of securing successful outcomes for our clients in complex and high-stakes matters.
In this article we outline some of the categories of frauds that businesses and individuals may encounter.
Serious Fraud
Defined by its scale, sophistication, and potential to destabilise corporate integrity, serious fraud often involves allegations of financial misconduct, tax evasion, or regulatory breaches. The Serious Fraud Office (SFO) is a specialist government agency responsible for investigating and prosecuting the most significant cases of economic crime. Its remit includes offences involving bribery, corruption, and corporate fraud, and often collaborates with agencies such as HMRC and the FCA.
Money Laundering
Money laundering involves the concealment or disguise of the origins of criminal property, often through complex financial transactions or legitimate business structures, and is prosecuted under the Proceeds of Crime Act 2002 (POCA).
Suspicious Activity Reports (SARs), a legal requirement, are submitted to the National Crime Agency (NCA) by financial institutions, accountants, solicitors, estate agents and private individuals when they become aware of, or suspect money laundering, terrorist financing, or other criminal activity.
Insider Trading
Insider trading is a criminal offence under the Criminal Justice Act 1993. It involves the use of confidential ‘material information’ about a company which is not available to the public, to gain an unfair advantage in trading in the securities market.
Material information may relate to matters such as advance knowledge of acquisitions or mergers, undisclosed dividend, or the unauthorised disclosure of financial statements.
The Financial Conduct Authority (FCA) has the authority to investigate and prosecute such misconduct, with penalties including substantial fines, imprisonment, and director disqualification.
Corporate Fraud
Corporate fraud refers to various activities undertaken by or on behalf of a business that involve deception or misrepresentation. These range from false accounting and payment fraud to investment and Phoenix Company fraud, among others.
An offence may be committed if a ‘relevant body’ such as an employee, agent or subsidiary, acting in a capacity associated with a large organisation commits a fraud offence intending to benefit, whether directly or indirectly, the large organisation.
On the 1st September 2025, the offence of Failure to Prevent Fraud under the Economic Crime and Corporate Transparency Act 2023, will come into effect, imposing criminal liability on organisations that do not have adequate fraud prevention procedures in place.
How we can help
Our team is regularly instructed by senior executives, company directors and professionals across a variety of sectors and business types. With extensive experience in navigating the complex nature of fraud investigations, our fraud solicitors provide strategic advice and robust representation from the start of an investigation through to the final resolution.
Clients have turned to the team at KANGS not only for our legal expertise in white collar crime but also for our discretion and unwavering commitment to achieving the best possible outcomes.
Should you be contacted by the SFO, FCA, NCA or HMRC in respect to any form of investigation, please do not hesitate to contact our experienced fraud solicitors who will be delighted to assist you.
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.
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