False Accounting Fraud Solicitors

JMW provides expert advice and representation to businesses and individuals facing accusations of false accounting. We have helped many people charged with false accounting, from employees and senior officers in large businesses to others in smaller, family-run outfits, and we can help organisations from across the UK.

False account fraud encompasses a range of different business activities, and when an allegation is made, it is vital that you secure legal representation and begin building your defence at the earliest opportunity. JMW's team has extensive knowledge of this area of the law and a track record of success in defending people accused of false accounting practices.

To speak to a member of JMW’s expert Business Crime, Regulatory and Criminal Defence team, get in touch with us by calling 0345 872 6666 or by filling in our online enquiry form to enable a member of the team to get back to you.

Our Services

JMW is able to help individuals and companies defend against all manner of allegations of false accounting. Such incidents can sometimes involve a small group of people within a company, meaning that business owners and directors may often be unaware that a crime has been committed.

False accounting is defined under Section 17 of the Theft Act 1968. In outline, it involves an individual dishonestly pursuing a gain for themselves or another. It can also be committed by intending to cause a loss to another. It usually involves falsifying, altering or submitting false, inaccurate or deceptive records for accounting purposes. Examples of false accounting can include:

• Inflating a company's share price
• Hiding losses to avoid the withdrawal of financial help
• Obtaining additional credit or finance to deal with cash flow issues
• Reporting false profits
• Winning new customers by making a company appear more successful than it is
• Hiding transactions
• Manipulating accounts to evade tax liability
• Keeping two sets of accounts in case of HMRC inspections or audits

If you have been accused of any of the above, contact JMW today to find out more about how our expert false accounting solicitors can help. We will provide the guidance you need at every stage of the process, allowing you to focus on the important matter of successfully operating your business.

Why Choose JMW?

Cases of false accounting have risen sharply over the past few years, as businesses struggle to stay afloat in a difficult economic climate. Some feel forced to overstate performance and assets to make it appear they are in a stronger position than they really are. In many cases, perpetrators do not directly benefit from the fraudulent act, but this does not mean that the practice is lawful.

Therefore, it is essential that should you face an allegation of false accounting, you have access to legal representatives with the experience and know-how to help you secure a favourable outcome. JMW has an excellent track record of helping businesses of all sizes successfully defend against such allegations.

From small businesses involved in low-level false accounting to larger-scale operations - such as cases where subsidiaries have allegedly committed fraud that has had a detrimental impact on the entire business - we deal with all cases of false accounting. We will provide effective, dependable guidance to give you the best possible chance of achieving the result you are after.

To build your case we will draw on the expert knowledge of associates, including:

• Forensic accounting experts
• Computer forensic experts
• Insolvency Practitioners
• Tax Experts

Our expertise in defending false accounting cases comes from years of experience, and working with us will give you the highest chance of mounting a successful defence. Contact us today to talk about your situation and learn more about our services.

Q

How should I respond to allegations of false accounting?

A

Under the Theft Act 1968, false accounting is a serious offence and carries significant penalties. As such, if you are involved in a false accounting case - whether as a suspect or a witness - it is vital you prepare for what might come next. It is vital to ensure your rights are upheld at all times during the investigation process.

You should start by seeking legal advice. A solicitor can advise you on what you should expect from the next stages of the investigation and help you to mount a defence. They can represent you during interviews with the Serious Fraud Office, the police or any other authority taking part in the investigation. When you work with our team, we will provide practical legal advice and help you to navigate the process while making sure your rights are protected.

When you speak to our expert false accounting solicitors, they will guide you on the collection of evidence in support of your case. This can help you to comply with disclosure obligations during the investigation and may be used to support your version of events.

Our expert fraud lawyers will talk to you about your organisation's internal procedures, the situations in which the fraud allegedly occurred, and your role in these affairs. Where necessary, we can gather expert testimony from a forensic accountant or other professional who can help to determine the facts.

If you are suspected of involvement in false accounting activities, you will need to build a defence and ensure you have a strategy in place as the investigation unfolds. This is just one reason why working with a solicitor from the beginning of the process is vital.

Particularly in investigations by the Serious Fraud Office (SFO), officers may wish to obtain statements from witnesses by what can appear to be a formal interview process. Witnesses faced with this process still have rights and seeking legal advice is important in protecting those rights, because a witness can still be regarded as a suspect if the evidence develops accordingly. For example, the SFO has powers to compel a witness to assist it and careful legal advice on the issue of self-incrimination is vital in retaining witness status.

Q

How can businesses investigate and prevent false accounting?

A

The UK government has introduced a new offence called "failure to prevent fraud", which obliges businesses to put effective measures in place to detect and prevent activities like false accounting. The prosecution often relies upon the absence of effective governance to suggest that the relevant activity was unlawful. It is therefore important to ensure and demonstrate compliance when developing a defence at the investigation or prosecution stage.

The best way to do this is to perform an audit of your current payroll management and accounting procedures. By approaching this from the perspective of a risk assessment, you can identify vulnerabilities and address them.

False accounting can be allowed to thrive without the notice of company directors in cases where the business owner or company director does not have proper oversight of financial transactions. This responsibility may be delegated, but it is important to ensure that there is visibility on all of your company's accounts. Introducing more separation of responsibilities among accounting departments is another way to introduce more of this type of oversight and prevent any individual person from having enough control to engage in fraudulent activity.

Q

What are the potential offences in accounting fraud cases?

A

Accounting fraud can be prosecuted under various offences, most commonly under the Fraud Act 2006 and the Theft Act 1968. As such, the charges you may face after false accounting allegations are made will depend on the evidence presented to the Crown Prosecution Service. The most common charges seen by JMW's legal team are:

• Fraud by false representation under the Fraud Act 2006. This occurs when a person dishonestly makes a false representation, intending to make a gain for themselves or another, cause loss to another, or expose another to risk of loss. The representation must be untrue or misleading, and it can be made in writing or implied by conduct, which means that it covers the preparation of false accounts or invoices provided the person knew that the representation was untrue. Falsifying revenue figures in company accounts to secure a loan or submitting inflated expense claims could be charged as fraud by false representation.
• False accounting can be charged under the Theft Act 1968 when a person dishonestly destroys, defaces, conceals, or falsifies any account or record, or furnishes information that is or may be misleading, false, or deceptive. This charge more specifically targets the falsification of accounting records, but it may be accompanied by other charges depending on the outcome of the alleged offence. For example, while actions like altering accounting ledgers to hide theft of funds can be charged as false accounting, defendants may also be charged with the theft or even money laundering alongside a false accounting charge. The prosecution must prove the defendant acted dishonestly with intent to gain or cause loss, and it is possible to build a defence on the basis that the alleged offence was in fact a legitimate mistake or the suspect did not have the requisite knowledge.
• Fraud by abuse of position under the Fraud Act 2006 may apply when a person dishonestly abuses a position in which they are expected to safeguard the financial interests of another person, with the intention to make a gain or cause loss. This may be charged in any case where someone in a position of trust misuses authority over finances or accounts, at all levels of a business, from employees and financial controllers to directors and trustees. An accountant deliberately failing to record liabilities or transferring company funds to a personal account may be guilty of fraud by abuse of position.

Other offences that may be relevant in false accounting cases are as follows:

• Conspiracy to defraud, if there was an agreement by two or more people to dishonestly deprive someone of something or to expose them to economic risk through false accounting.
• Companies Act 2006 offences including breaches of the duty to keep adequate accounting records and prepare annual accounts, or making false statements in filings with Companies House.

There are significant penalties associated with all of these charges upon conviction, but an experienced solicitor can help you to mount a defence and secure the best possible outcome.

Q

What are the potential sentences if you are found guilty?

A

The sentence that someone convicted of accounting fraud will receive depends on the circumstances of their conduct and the specific offence with which they are charged. The most serious offences can lead to a custodial sentence, and you may face disqualification as a company director or be prevented from acting in other roles with responsibility for financial accounts.

The maximum sentences for the most common offences are listed below:

• Fraud by false representation can result in up to 10 years’ imprisonment and/or an unlimited fine.
• False accounting carries up to seven years’ custodial sentence.
• Fraud by abuse of position also carries up to 10 years’ imprisonment.
• Conspiracy to defraud can be more severe, as it is not limited by the Fraud Act’s sentencing cap, and could result in sentences exceeding 10 years in serious cases.

Certain aggravating factors will cause the court to consider harsher sentences based on the relevant sentencing guidelines. These include:

• A high degree of fraud and financial loss.
• Abuse of a position of trust.
• A significant impact on creditors, employees, and stakeholders.
• A highly sophisticated or long-running deception.
• Attempts to conceal or destroy evidence.

On the other hand, cooperation with the investigation and early admissions of guilt may be considered mitigating factors that support a lesser sentence.

Q

How can a solicitor help to defend false accounting offences?

A

The expert solicitors at JMW will work with you to secure the best possible outcome. Many accounting fraud cases involve a thorough investigation by the authorities, but seeking legal help at an early stage can minimise any inconvenience. For example, if you are subject to an account freezing order, we can help you to have it varied or discharged to restore access to your funds. We can represent you at the police station or during interviews with the relevant regulator, and gather documents and other evidence to support your defence.

Defending a charge may involve pleading guilty to a lesser charge, or arguing that false representations were made by mistake. We explore whether there is evidence that you had the requisite knowledge of the alleged wrongful acts. We can work with expert forensic accountants to trace funds and explain lawful transactions. If you are found guilty (or decide to enter a guilty plea), JMW can present mitigating factors at sentencing that will ensure your sentence is in accordance with the guidelines and not excessive.

Working with experienced accounting fraud solicitors can make a critical difference to your chances of success. JMW is nationally recognised for its expertise and success in representing those accused of fraud and delivering the best result possible.