Fraudulent Trading and Wrongful Trading Defence Lawyers
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.
Dedicated expertise for defending all types of fraud offences.
Our Specialist Fraudulent Trading Solicitors
What Is Fraudulent Trading?
Fraudulent trading occurs when company directors or those responsible for managing a business continue trading while knowingly intending to deceive creditors, customers or other parties. These allegations typically arise when a company is experiencing serious financial difficulty yet continues to obtain goods, services or credit despite being unable to meet its financial obligations.
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
One of the most common allegations involves a company continuing to trade while it is unable to meet its financial obligations. Investigators may claim that directors knew the business could not repay creditors yet continued to accept goods, services or credit.
In many situations, however, directors continue trading in the genuine belief that the business can recover or secure new investment. Our solicitors carefully analyse financial records, management decisions and commercial circumstances to determine whether trading activity reflected legitimate attempts to stabilise the company.
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.
Case Study
Liverpool's Longest Fraud Trial
26 October 2018
In the longest fraud trial Liverpool's Crown Court has seen, Rob Mann of Draycott Browne conducted the successful representation of former Conservative councillor David Richard Barton. A not guilty verdict was returned after 137 days of trial allowing David to finally put his life back on track.
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.
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.
Frequently Asked Questions for Fraudulent Trading
Wrongful trading occurs when company directors continue operating a business despite knowing, or reasonably believing, that the company cannot avoid insolvency. Unlike fraudulent trading, wrongful trading does not require proof that directors intended to deceive creditors.
In many cases, directors continue trading because they believe the business may recover through new investment, improved trading conditions or restructuring. However, investigators may later examine whether those decisions placed creditors at greater financial risk.
Our experienced Wrongful Trading Lawyers advise directors during insolvency investigations where concerns are raised about business decisions taken before liquidation. By examining financial forecasts, company records and the circumstances surrounding trading decisions, we work to demonstrate whether directors acted responsibly and in good faith.
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.
When a company reaches this position, directors are expected to act carefully and prioritise the interests of creditors. Investigators may later review financial records, trading activity and company decisions to determine whether directors acted responsibly once the business entered financial difficulty.
Our experienced Insolvency Trading Solicitors regularly advise directors and business owners during investigations that arise from insolvency proceedings. By examining financial documents, management decisions and the wider commercial circumstances, we work to establish whether continued trading represented a genuine attempt to stabilise the company rather than misconduct.
Long firm fraud is a form of commercial fraud where a business is deliberately established to obtain goods or credit from suppliers with no intention of paying for them.
Typically, the company will begin trading normally and build trust with suppliers by placing smaller orders and paying invoices on time. Over time the business establishes a good credit reputation. Once that trust is built, the company will place large orders for goods or services on credit before disappearing or entering liquidation without paying its debts.
Investigators may examine trading activity, financial records and company structures to determine whether the business was created with the intention of deceiving creditors. In many cases, long firm fraud allegations arise during insolvency investigations where a company suddenly collapses after obtaining substantial credit from suppliers.
Our Fraudulent Trading Solicitors regularly advise directors and business professionals facing allegations connected to long firm fraud. By carefully analysing trading history, creditor relationships and the commercial context of the business, we work to challenge claims that the company was established or operated with dishonest intent.
Allegations of fraudulent trading are investigated by specialist authorities responsible for tackling serious financial crime and corporate misconduct. These investigations often begin when a company enters insolvency proceedings and financial records are reviewed by an appointed insolvency practitioner.
Depending on the circumstances of the case, several enforcement agencies may become involved in the investigation. These may include:
- The Insolvency Service which investigates director misconduct and corporate wrongdoing
- The Serious Fraud Office which handles serious or high value financial crime cases
- HM Revenue and Customs where tax related offences are suspected
- Police economic crime units that investigate complex fraud allegations
Our Fraudulent Trading Solicitors regularly represent directors and business professionals who are contacted by investigators during these enquiries. Early legal advice can help protect your position and ensure that any responses to investigators are carefully managed from the outset.
Directors may be accused of fraudulent trading when investigators believe that a company continued operating while those responsible for managing it knew that the business could not meet its financial obligations. These allegations often arise during insolvency proceedings when the company’s trading history, financial records and decisions made by directors are examined in detail.
Investigators will typically consider whether directors continued to obtain goods, services or credit despite knowing that creditors were unlikely to be paid. They may also examine whether company funds or assets were handled in a way that placed creditors at further financial risk.
Our Fraudulent Trading Solicitors regularly advise directors who are contacted by investigators during insolvency enquiries. By reviewing financial documentation, company decision making and the circumstances surrounding the business at the time, we work to establish whether trading activity represented legitimate attempts to rescue the company rather than dishonest conduct.
Defending allegations of fraudulent trading requires a detailed examination of the company’s financial records, trading decisions and communications with creditors. Investigators will often analyse whether directors knowingly continued trading while the company was unable to meet its financial obligations.
A strong defence will focus on the circumstances surrounding the company’s financial position at the time decisions were made. Directors may have continued trading in the genuine belief that the business could recover through new investment, restructuring or improved trading conditions. Establishing the commercial context is often central to challenging allegations of dishonesty.
Our Fraudulent Trading Solicitors carefully review company accounts, creditor correspondence and insolvency documentation to identify weaknesses in the case against you. Where necessary, we work with forensic accountants and financial experts to analyse the evidence and develop a strategic defence designed to protect your position.
Fraudulent trading investigations often involve detailed examination of company financial records and business communications. Investigators will typically review documents that show the financial position of the company and the decisions made by directors during periods of financial difficulty.
Common types of evidence examined during these investigations include:
- Company accounts and financial statements
- Bank records and cash flow forecasts
- Communications with creditors and suppliers
- Internal business correspondence and board decisions
- Insolvency reports prepared by appointed practitioners
Our experienced Insolvency Trading Solicitors regularly analyse these materials when preparing a defence for directors and business owners. By examining the evidence in its full commercial context, we work to demonstrate whether company decisions were made responsibly rather than with the intention to mislead creditors.
Sentencing for fraudulent trading depends on several factors including the financial harm caused, the level of planning involved and the role played by the individual accused. Courts will assess the seriousness of the conduct and the overall impact on creditors.
Fraudulent trading offences are typically prosecuted under the Insolvency Act 1986, and cases heard in the Crown Court can carry a maximum sentence of up to 10 years imprisonment.
When determining a sentence, courts may consider penalties such as:
- A custodial sentence which can extend up to 10 years imprisonment
- Financial penalties imposed by the court
- Confiscation proceedings under the Proceeds of Crime Act 2002
- Disqualification from acting as a company director
- Serious professional and reputational consequences
Our Fraudulent Trading Solicitors can provide clear advice on how the Sentencing Council guidelines may apply to your case and will work to ensure that the full circumstances surrounding your position as a director are properly presented before the court.
When determining a sentence, courts will also consider mitigating factors that may reduce the seriousness of the offence or demonstrate that the actions of the director were not motivated by deliberate dishonesty.
Mitigating circumstances may include:
- Evidence that directors believed the business could recover financially
- Cooperation with investigators during the insolvency investigation
- Limited personal financial gain from the alleged conduct
- Demonstrating responsible attempts to restructure or stabilise the company
Our experienced Wrongful Trading Lawyers work closely with clients to present these circumstances clearly before the court. By explaining the commercial context in which decisions were made, we aim to ensure that directors are judged fairly based on the full circumstances surrounding the company’s financial position.
Related Areas
Contact our Fraudulent Trading Solicitors
If you are under investigation for fraudulent trading or wrongful trading, contact our specialist criminal defence lawyers for advice today. Our Fraud Lawyers have significant expertise in these cases and will be able to 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. We regularly provide specialist criminal defence 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.