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Fraudulent Trading Solicitors

At Draycott Browne, our Fraudulent Trading Solicitors defend directors and business owners facing allegations of fraudulent trading and insolvency related offences.

These allegations are treated as serious financial crime and often arise during insolvency investigations where company accounts, trading activity and creditor relationships are examined in detail.

Directors may come under scrutiny where investigators believe a company continued trading despite being unable to meet its financial obligations. These investigations frequently involve detailed reviews of financial records, business decisions and communications with creditors to determine whether any dishonest conduct occurred.

With more than 25 years of experience defending serious financial crime cases, Draycott Browne has established a reputation for delivering high quality legal representation in complex business crime investigations. Our fraud department is led by Rob Mann, Director and Head of Fraud, whose extensive experience in high value financial crime ensures that every case is approached with strategic focus, technical precision and determination.

If you are under investigation for fraudulent trading or believe allegations may soon be made against you, it is essential to seek legal advice as early as possible. Early representation allows your legal team to protect your position, carefully assess the evidence and develop a robust defence strategy from the outset.

Contact Draycott Browne today to speak with one of our specialist Fraudulent Trading Solicitors in confidence.

How our Fraudulent Trading Solicitors Can Help

Allegations of fraudulent trading can place directors and business owners under intense legal and financial scrutiny. Investigations often arise during insolvency proceedings and may involve detailed examination of company accounts, trading activity and creditor relationships. At Draycott Browne, our Fraudulent Trading Solicitors provide clear advice and decisive legal support from the moment an investigation begins.

Our team regularly represents directors and professionals facing allegations of creditor fraud and trading offences linked to insolvency. With extensive experience in serious financial crime cases, our Wrongful Trading Lawyers and Insolvency Trading Solicitors carefully analyse the evidence and develop a strategic defence designed to protect your position. We can assist with:

  • Provide immediate legal advice when you become aware of an investigation
  • Represent you during interviews under caution
  • Manage communication with investigators and insolvency practitioners
  • Review company financial records and trading activity
  • Analyse creditor claims and insolvency documentation
  • Challenge allegations of intentional deception or creditor fraud
  • Prepare a strategic defence based on the evidence in your case
  • Represent you in Magistrates Court and Crown Court proceedings

Early legal advice is essential in cases involving fraudulent trading or insolvency related offences. By instructing our Fraudulent Trading Solicitors at the earliest stage, you ensure that your rights are protected and that your defence is prepared with the care, skill and determination required in serious financial crime investigations.​

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Criminal Defence Expertise for Fraudulent Trading Offences

Robert Mann Criminal Defence Lawyer

How I Take Control of the Investigation

Robert Mann | Fraud Defence Lawyer

"I don't believe in waiting for the prosecution to make the first move. Success in fraudulent trading defence is built in the months before you ever step into a courtroom. We use that time to dismantle the case against you piece by piece, auditing every document and challenging every assumption. When we take control, we aren't just reacting to the investigation; we are leading it."

Arrested or facing an urgent interview? Call me now on the 24/7 emergency number at the top of this page for immediate advice.

 

 

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Our Specialist Fraudulent Trading Solicitors

Shaun Draycott

Shaun Draycott

Managing Director & Serious Crime Solicitor
Rob Mann

Rob Mann

Director & Serious Crime Solicitor
Venessa Schweitzer

Venessa Schweitzer

Consultant Litigator
Caitlin Cardwell

Caitlin Cardwell

Crown Court Litigator
Meet the Team

What Is Fraudulent Trading?

Fraudulent trading is a criminal offence under section 993 of the Companies Act 2006. It can arise where any business of a company is carried on with intent to defraud creditors of the company or another person, or for any fraudulent purpose, and an individual knowingly participates in carrying on the business in that way.

The offence is not limited to directors. Other individuals who are knowingly involved in the fraudulent conduct can also potentially be prosecuted.

Fraudulent trading can also have civil consequences during insolvency proceedings. Under section 213 of the Insolvency Act 1986, a court can order a person who was knowingly involved in carrying on the company’s business with intent to defraud creditors, or for another fraudulent purpose, to make a contribution to the company’s assets.

In many cases, investigations begin after a company enters insolvency proceedings. Insolvency practitioners or investigators may review the company’s trading history, financial records and communications with creditors to determine whether business activities were carried out dishonestly or with the intention of avoiding payment.

Allegations of fraudulent trading can involve company directors, shadow directors and others involved in the management of the business. Investigators will often examine the decisions made by those responsible for the company to determine whether trading activity was part of a genuine attempt to rescue the business or whether creditors were deliberately misled.

Because insolvency investigations can involve large volumes of financial records and complex commercial decisions, it is essential that the circumstances surrounding the company’s trading activity are carefully examined before any conclusions are drawn.

What Are The Different Types Of Fraudulent Trading?

Fraudulent trading allegations can arise in a variety of commercial circumstances, particularly where a business is experiencing financial difficulty but continues to operate in a way that investigators believe may have misled creditors or customers. These cases often emerge during insolvency investigations where financial records, trading decisions and communications with suppliers are closely examined.

Directors, company officers and others involved in the management of a business may all become the focus of scrutiny. Understanding how different forms of fraudulent trading can arise is an important part of preparing a strong defence.

 

Continuing To Trade While Insolvent

Continuing to trade while a company is insolvent does not, by itself, amount to fraudulent trading. For criminal liability under section 993 of the Companies Act 2006, the prosecution must establish an intent to defraud creditors or another fraudulent purpose, together with knowing participation in the way the business was carried on.

A separate civil regime for wrongful trading exists under the Insolvency Act 1986. This can apply to directors who knew, or ought to have concluded, that there was no reasonable prospect of the company avoiding insolvent liquidation or administration and who failed to take appropriate steps to minimise losses to creditors.

 

Creditor Fraud

Creditor fraud allegations arise where investigators believe that a company obtained goods or services from suppliers without any realistic prospect of paying for them. This may involve accepting deliveries or placing orders despite the business facing severe financial difficulty.

Our defence team examines the timeline of events, financial forecasts and communications with suppliers to establish whether the company genuinely expected to fulfil its obligations at the time the transactions took place.

 

Long Firm Fraud

Long firm fraud is a specific type of trading fraud where a company is established with the intention of building trust with suppliers before making large purchases on credit and failing to pay for them.

These schemes often involve companies placing small orders and paying promptly in the early stages to build a strong credit profile. Larger orders are then placed before the company disappears or enters liquidation. Our solicitors review company structures, trading history and financial activity to challenge allegations that the business was created for fraudulent purposes.

 

Fraudulent Asset Transfers

Fraudulent trading investigations may also involve allegations that company assets were transferred or sold before insolvency in order to prevent creditors from recovering their debts. This can include transferring assets to connected parties or selling company property below market value.

In these cases, our legal team reviews the circumstances surrounding asset transfers and examines whether the transactions formed part of legitimate business decisions rather than attempts to disadvantage creditors.

 

False Accounting During Insolvency

Investigators may also examine whether company records or financial statements were manipulated in order to conceal the true financial position of the business. Allegations may include inaccurate accounts, misleading financial reports or failure to disclose significant liabilities.

Our Fraudulent Trading Solicitors analyse accounting records and financial documentation in detail, often working alongside forensic accountants to assess whether the company’s financial reporting accurately reflected the information available at the time.

 

Cross Border Insolvency Fraud

In some cases, fraudulent trading allegations involve companies operating across multiple jurisdictions. Businesses trading internationally may have creditors, suppliers or financial transactions located in different countries, which can add further complexity to an investigation.

Our experienced Insolvency Trading Solicitors are well equipped to manage cases involving international financial activity, ensuring that evidence gathered across jurisdictions is carefully examined and challenged where appropriate.

Specialist Fraudulent Trading Solicitors

  • 24/7 Availability
  • Proven Success in High Profile Cases
  • Non-Judgemental Representation Tailored to Your Situation

Protect your future with trusted, expert legal defence—contact Draycott Browne’s Wrongful Trading Lawyers today.

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What If I Am Arrested Or Charged With Fraudulent Trading?

If you are arrested or formally charged with fraudulent trading, it is essential to seek legal representation immediately. Investigations into trading offences and insolvency related fraud can involve extensive examination of company accounts, financial records and communications with creditors. The way you respond during the early stages of an investigation can have a significant impact on the outcome of your case.

If you are asked to attend an interview under caution, you have the right to legal advice before answering any questions. Investigators will often seek detailed explanations about company finances, trading decisions and creditor relationships, and it is important that you do not respond without proper legal guidance.

Our Fraudulent Trading Solicitors provide immediate representation at police stations and during financial crime investigations. We will advise you on your legal position, ensure your rights are protected and carefully manage the interview process to prevent misunderstandings that could later harm your defence.

With the support of experienced Wrongful Trading Lawyers and Insolvency Trading Solicitors, our team will assess the evidence against you, review company financial records and begin developing a strategic defence designed to challenge the allegations from the outset.

24 Hour Availability

Fraud investigations often begin without warning. Arrests, search warrants and requests to attend interviews can occur at any time, particularly in cases involving serious financial crime and insolvency related offences.

At Draycott Browne, our Fraudulent Trading Solicitors are available 24 hours a day, 7 days a week to provide immediate legal advice and representation. If you are contacted by investigators or asked to attend an interview, our team can act quickly to ensure your rights are protected and that you receive clear guidance from the outset.

Early legal advice can make a significant difference during fraud investigations. By seeking representation as soon as possible, you give your defence the strongest possible foundation while ensuring that every step you take is carefully considered and legally protected.

Legal Aid

In some cases, individuals facing allegations of fraudulent trading may qualify for financial support through the Legal Aid scheme. Access to experienced legal representation is essential, particularly in investigations involving company records, insolvency proceedings and detailed financial evidence.

Our experienced Legal Aid Solicitors can assess whether you meet the eligibility requirements and guide you through the application process. We will help you understand the criteria for Legal Aid and ensure that your application is prepared correctly so that you receive the maximum support available.

Financial concerns should not prevent you from securing high quality legal advice. Our team will provide clear guidance on your funding options while ensuring your rights are protected throughout the investigation.

Private Funding

At Draycott Browne, we have long supported clients who qualify for Legal Aid. However, it is important to recognise that Legal Aid funding places significant limitations on the level of support and resources that can be dedicated to a case.

By choosing to privately fund the legal services you require, you secure access to the highest level of advice and representation from our specialist fraud defence team. Private funding allows us to allocate additional time and expertise to your case, which is often essential in investigations involving company insolvency, complex financial records and detailed creditor claims.

With this approach, our Private Criminal Defence Solicitors can draw on the full strength of our experienced legal team. We can conduct detailed analysis of company accounts, review insolvency investigations and instruct financial experts where necessary to ensure that every aspect of the evidence is carefully examined.

If you are facing allegations of fraudulent trading or creditor fraud, we strongly advise considering a privately funded route. In serious financial crime investigations, the quality of your legal representation can play a decisive role in protecting your reputation and securing the best possible outcome.

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Our legal team is available 7 days a week

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Contact our Fraudulent Trading Solicitors

If you are under investigation for fraudulent trading or wrongful trading, contact our specialist fraud solicitors for advice today. Our team has significant expertise in these cases and will provide you with the best possible advice and support

We take great pride in our dedication and professionalism. We are relentless in the pursuit of achieving the best result possible for all of our clients and will continuously work hard on your behalf with an attention to detail and tenacity that is second to none.

We have over 25 years of experience in this area of law. Our track record in even the most complex and sophisticated of cases shows that you’ll have the best possible chance of a successful outcome to the challenge you are facing.

Draycott Browne is one of the UK's top criminal defence law firms. Our criminal lawyers regularly provide specialist representation in cases involving fraudulent trading to clients in Manchester, Liverpool, London, Birmingham and throughout the whole of England and Wales. When facing serious consequences, trust in Draycott Browne. You cannot afford to settle for anything less.

We are available 24 hours a day, 7 days a week, with Fraudulent Trading Solicitors committed to providing first-class representation for every client. If you or somebody you know has been arrested and needs expert legal representation, call Draycott Browne today.

Frequently Asked Questions for Fraudulent Trading

Wrongful trading can arise where directors continue trading when they knew, or ought to have concluded, that there was no reasonable prospect of the company avoiding insolvent liquidation or administration. Unlike fraudulent trading, it does not require proof of dishonesty or an intention to defraud creditors.

Trading insolvent refers to a situation where a company continues to operate and incur debts while it is unable to pay the money it owes to creditors. A business is generally considered insolvent when it cannot meet its financial obligations as they fall due or when its liabilities exceed the value of its assets.

Long firm fraud involves establishing or operating a business to build trust with suppliers, obtain goods or credit, and then avoid paying what is owed. Investigators will usually look at trading patterns, company finances and creditor relationships to determine whether there was a dishonest intention from the outset or during the company’s operation.

Fraudulent trading may be investigated by the Insolvency Service, Serious Fraud Office, HMRC or specialist police economic crime units, depending on the nature and scale of the allegations. Investigations often begin after a company enters insolvency and its financial records and directors’ conduct are reviewed.

Directors may face allegations of fraudulent trading where investigators believe a company continued to trade dishonestly, for example by obtaining goods, services or credit when there was no realistic intention or ability to pay. Investigators will usually examine the company’s finances, trading history and directors’ decisions to determine whether the conduct was dishonest or part of a genuine attempt to rescue the business.

A defence will usually focus on whether the directors acted dishonestly or genuinely believed the business could recover through measures such as refinancing, restructuring or improved trading. Company accounts, creditor correspondence and insolvency records may be analysed, sometimes with forensic accounting evidence, to challenge allegations of dishonest trading.

Investigators may examine company accounts, bank records, cash flow forecasts, creditor correspondence, internal communications, board decisions and insolvency reports. This evidence is used to assess the company’s financial position and whether directors acted dishonestly when continuing to trade.

Fraudulent trading under section 993 of the Companies Act 2006 can carry up to 10 years’ imprisonment and a fine. The sentence will depend on factors such as the financial harm caused, the level of planning and the individual’s role, with confiscation proceedings and director disqualification also potentially following a conviction.

Mitigating factors may include a genuine belief that the business could recover, cooperation with investigators, limited personal gain and reasonable attempts to restructure or stabilise the company. The court will consider these circumstances alongside the seriousness of the offence when deciding the appropriate sentence.

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