Fraudulent trading part two: What actions constitute fraudulent trading?

It is normally the police or other government agencies such as the Organised Crime Agency who head up fraudulent trading investigations once they receive complaints by creditors who have lost money. Typically, it will be due to a Company having stopped trading or has been placed into liquidation due to a high number of debts which are outstanding to creditors. On other occasions, the Company may totally disappear off the radar or carried on trading and has incurred a significant amount of credit knowing that the company did not have the funds from which to pay these debts.

We have come across some instances where the company is purely set up to defraud often known as Long term fraud. What happens in a typical situation is that they will buy products which can be sold easily. They could create credit accounts that they maintain for a period of time to build customer trust then increase the spend significantly and disappear. Where there is short term fraud the business owners will buy as much products as they can in one go and then disappear.

We have written some simple guidance to point you in the right direction so that you are better equipped in understanding your options.

Previously in the series:

Fraudulent trading part one: Have you been accused of fraudulent trading?

Next in the series:

Next Steps

If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising because of any person or organisation acting or refraining from acting on any information.

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