Specialist London Solicitors in Participation by Sole Trader in Fraudulent Business cases
At MFI Law Limited we have the expertise in representing clients charged with fraud related offences. Our London Solicitors are available to represent clients at London Police Stations, Magistrates' and Crown Courts throughout the country.
Participation by Sole Trader in Fraudulent Business is governed by Section 9 of the Fraud Act 2006 which states:
Non‐corporate traders covered by the new offence include sole traders, partnerships, trusts and companies registered overseas.
A person is guilty of Participation by Sole Trader in Fraudulent Business if he:
- knowingly being party to the carrying on of a company's business
- with intent to defraud creditors of any person or
- for any other fraudulent purpose.
‘To defraud creditors of any person’ covers the situation where creditors are creditors of the business, but the business is not a legal person. The creditors could be creditors of individuals or of other related companies.
‘Fraudulent purpose’ would be the intention to go ‘beyond the bounds of what ordinary decent people engaged in business would regard as honest’ as set out in R v Grantham [1984] 1Q.B. 675; 79 Cr App.R.86.CA
The following types of business activities can be prosecuted under this offence:
- a business which has continued to trade and run up debts knowing that there was no reasonable prospect of those creditors ever being paid,
- a business is being run for a fraudulent purpose, for example, rogue traders who regularly submit inflated bills to customers for uncompleted work.
Sentencing guidelines for participation by sole trader in fraudulent business
Maximum Sentence: 10 years imprisonment
