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Fraudulent trading is an abuse of position of responsibility or power at the corporate level, carried out by a director, high-level employee or former employee which results in the business suffering financial loss.
Fraudulent trading claims arise where it is alleged that company directors have, with a dishonest intent, traded on when the business is clearly insolvent and/or have siphoned off assets or sold them cheaply to connected persons and/or have otherwise acted deliberately with an intent to disadvantage creditors.
When a company is liquidated, the appointed Insolvency Practitioner is duty bound to investigate the directors conduct in the lead up to insolvency.
If the Insolvency Practitioner believes there has been fraudulent trading he or she may start civil proceedings against the director and/or refer the matter on for potential criminal law proceedings.
A director may face personal liability to pay back losses, disqualification as a director and in extreme cases, a prison sentence of up to 10 years.
We have a team of insolvency and fraud specialist lawyers. We act for company directors facing allegations of fraudulent trading and also for Insolvency Practitioners who want specialist and experienced lawyers on side before taking action..
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Telephone -
9am to 5pm
Specialist Insolvency Solicitor
Richard started his career with the Official Receiver and the Insolvency Service carrying our director disqualification investigations. Richard then qualified as a Solicitor in 2006.Richard has been practising insolvency law, law in relation to......Find out more about our multi-disciplinary team.
Call the Taylor Rose team or fill out the form below and we will get back to you as soon as possible.
Telephone opening hours -
9am to 5pm
