Corporate Fraud
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Corporate Fraud
Corporate fraud is an area of increasing significance and scope. St Pauls Chambers is ideally placed to assist in either the prosecution of such offences or defending those who are accused of participating in them.
Counsel from St Pauls Chambers regularly prosecute and defend across the whole spectrum of fraudulent offences. Corporate fraud cases can occur on a relatively small scale (for example a payroll fraud in the context of a small business) to large-scale frauds committed across borders and providing returns in the millions (by way of example only a carousel fraud).
A corporate fraud investigation is often complex. Experience is critical when seeking either a successful prosecution or defence in this area. St Pauls Chambers prides itself on having a wide array of specialist advocates well versed in both the general area of corporate fraud, but also a detailed knowledge of the various specialisms within it.
Variations Within Corporate Fraud Cases
Corporate fraud consists of a dishonest act or series of acts committed by, against, or within a business.
The examples of such fraud are voluminous but common examples are the following:
- Payment frauds; these involve the false creation of payments within a corporate setting or the diverting of legitimate payments away from their proper destination. This type of fraud is often perpetrated internally by members of staff entrusted with sensitive information or access to internal systems.
- Business trading frauds; this type of fraud involves the setting up of seemingly legitimate business with the ultimate aim being to defraud suppliers and/or customers. It is important to note that such fraudulent conduct can operate over significant periods. This allows those committing the fraud to rely on the good standing of the commercial entity to deceive customers on a wider scale.
- Institutional frauds; these types of fraud are perhaps the most well known examples of corporate fraud. They are often described as ‘ponzi’ or ‘pyramid’ schemes. The fraud operates by creating a non-sustainable business model kept alive by new customers investment going to reward those already invested.Such an approach artificially increases the value of stock to the outside observer whilst doing so against a fundamentally insecure base. The fraud is often exposed when investors seek the return of their funds causing the entire edifice to collapse.
- Insolvency and bankruptcy fraud; this type of fraud is increasingly evident. It can often involve the transfer of fixed assets from a particular company experiencing financial trouble to a new company. The benefit of such an approach is that the assets are retained by the individuals behind the company whilst the liabilities and debts remain with the old company. The Insolvency Act provides the opportunity for such assets to be reclaimed but expert legal advice will often be required to ensure such a return occurs.
Other types of corporate fraud include insurance frauds, banking/credit frauds, intellectual property and counterfeit good fraud.
