Commercial Fraud

We provide experienced legal advice on the various types of financial and business fraud, with particular experience in fraud by company directors and employees. We act for both claimants and defendants.

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Working with us to handle your commercial fraud case

Where business fraud is suspected, we assist with internal investigations ensuring that the investigation process is legally sound. If your business has been defrauded by an external fraudster you will often need to act very fast, if there is any prospect of recovering losses.

We have the skills and experience to handle civil fraud claims including :

•  court injunctions
• asset freezing applications
• fraud allegations as part of partnership disputes and shareholder disputes
• employment law issues arising from suspected employee or director fraud

Many of our clients select us over the larger firms because they know they will receive a dedicated service which is cost proportionate.

Types of civil fraud

Common types of civil fraud under English law include

• Misrepresentation – False statements inducing another party to enter a contract.
• Concealment of Material Facts – Deliberate withholding of key information.
• Breach of Fiduciary Duty – Abuse of a position of trust for personal gain.
• Deceit – Knowingly making false representations causing loss to another.
• Fraudulent Trading – Carrying on business with intent to defraud creditors.
• Asset Dissipation – Transferring or hiding assets to avoid paying debts.
• Forgery – Use of fake documents or signatures to deceive.
• Bribery and Corruption – Secret commissions or inducements to influence decisions.
• Conspiracy to Defraud – Agreement between two or more parties to dishonestly cause loss.
• Unlawful Diversion of Business – Redirecting opportunities or clients for personal benefit.

Defences to fraud allegations and claims

The strategy of defence to a civil court claim where there is a fraud allegation will depend on the facts claimed. However, some common defences are as follows:

• No reliance – the claimant did not in fact rely on any statement or representation. For example, the claimant may have conducted its own investigations often in the form of due diligence. This will likely defeat any tort of deceit claim.
• No loss – the claimant has not suffered any loss or damage. There may be no loss or damage at all, or if there is loss or damage, the defendant did not cause it. It is not uncommon for a defendant to claim that the claimant contributed to the loss or damage suffered.
• No deceit – the statement made was not deceitful. The statement may have been updated at the time of the claimant’s reliance which negates any argument from the claimant that the defendant is liable.

It is the claimant’s burden of proof to satisfy the Court that fraud is present. A strong defence can open a path to settlement if a hole in the claim is properly attacked.