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CRIMINAL DEFENCE LAWYERS
CREDITOR FRAUD SOLICITORS
Being charged with creditor fraud can have very serious consequences for both your professional and personal life. Penalties include a prison sentence of up to 10 years and a fine.
Mission
If you or your company is the subject of a creditor fraud investigation, it is highly advisable to seek legal advice from a solicitor experienced in creditor fraud law as soon as possible. This allows your solicitor to offer guidance and support throughout the process, assisting you in building a robust defence for your case from the outset.
What is creditor fraud?
Creditor fraud, also referred to as fraudulent trading, occurs when a business is conducted with the intention of defrauding creditors.
What does the law say about creditor fraud?
Creditor fraud (or fraudulent trading) constitutes a criminal offence in England and Wales.
This offence is delineated in section 993 of the Companies Act 2006, which stipulates:
"If any business of a company is carried on with intent to defraud creditors of the company or creditors of any other person, or for any fraudulent purpose, every person who is knowingly a party to the carrying on of the business in that manner commits an offence."
This offence can be perpetrated irrespective of whether the company is undergoing or has undergone winding up.
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