Director Disqualification – Fraud Enquiries are on the Increase.
New figures released by the Insolvency Service show that the number of company directors receiving director disqualification periods for criminal activity has almost doubled in the last financial year, when 119 directors were disqualified by the Insolvency Service for wrong-doing including fraud and false record keeping. This marks an 83% increase on the previous year and is more than double the figure for 2013, which saw only 53 such director disqualifications.
This trend appears to show that the Insolvency Service is prepared to take on and pursue the bigger and more difficult director disqualification cases, involving criminal and quasi -criminal allegations against directors.
How Should a Director Accused of Fraud in Director Disqualification Proceedings Respond?
The simple answer is: with great care!
Directors should always be aware of the possibility of a parallel, criminal/regulatory investigation into the matters complained of. The director should not be afraid to ask the Insolvency Service (and others) whether they know of such an on-going or contemplated criminal investigation. The precise manner in which that question is framed and to whom it is directed, can be extremely important.
The answer to the question posed is very important as any admissions that the director might make in the civil director disqualification proceedings, may (and we put it no higher than that) become used against the director in a parallel, criminal investigation and such admissions may well cause and allow a criminal investigation to become a criminal prosecution.
We Can Help If You Are Faced With Director Disqualification
David Hanman and the NDP team of director disqualification solicitors are well placed and well used to advising directors on such matters. The approach taken by the director(s) in such circumstances can make or break his/her future. If you are facing director disqualification proceedings, please feel free to call us on 0121 200 7040, or contact us, for a no obligation free of charge discussion.
LinkedIn Facebook Twitter Google+
Recovering unpaid-for goods from the administrator of BHS. The commercial litigation specialists here at Neil Davies & Partners were recently instructed by a multi-national. Read More »
This is a recent testimonial from a client who was threatened with a director disqualification period of 6 years. He was told his case was hopeless despite spending several. Read More »
Get In Touch