Civil Fraud

• Bibby Commercial Finance Limited
• Bibby Factors Limited
• Bourne Leisure Limited
• Lloyds Bank Commercial Finance Limited
• Metro Bank Invoice Finance
• MJ Quinn Integrated Services Limited

• Acting in a civil action for fraud for a US billionaire to successfully pursue a multi-million pound misfeasance and breach of duty claim against his former employee following the misappropriation of funds. 
• Acting for a limited company to obtain a freezing injunction for £3.2million against a former financial controller in respect of a civil fraud/cheque fraud and other financial claims. Subsequently instructed to recover remaining assets and to investigate/pursue claims against the client’s bank, its auditors and against recipients of the monies defrauded. Assisting the client with the investigation in to how the fraud was ‘covered up’ and to improve internal processes to avoid similar actions from re-occurring.
• Acting for a national company on a claim valued at over £1million for commercial fraud allegedly carried out by a former senior employee acting in conjunction with a third party supplier of IT services. The client alleged that the defendants mis-used their respective positions to obtain payments, some of which through ‘ghost’ agency workers. Proceedings were brought in the High Court for deceit, procuring breaches of contract and restitution and the client was awarded damages. 
• Acting in a fraud civil claim for a temporary staff business which was defrauded by its General Manager claiming salary and holiday pay for ‘ghost workers’. Subsequently obtained multiple Norwich Pharmacal Orders and thereafter pursed the conspirators to reach a successful conclusion. 
• Obtaining a freezing injunction against persons unknown who had obtained funds via a phishing e-mail attack and an order for provision of information pursuant to the Bankers Book Evidence Act 1879 against a high street bank. Urgent injunction obtained within 48 hours of receipt of instruction which led to a full recovery.
• Obtaining a freezing injunction in a fraud civil case against an employee who had misappropriated funds. Ultimately the employee consented to the continuation of the injunction and judgment being entered for circa £200,000, following which enforcement was affected via delivery up of various assets, third party debt orders and a charging order. Liaising with police for the purposes of a subsequent criminal investigation.
• Acting for a SME in recovering significant funds after it had fallen victim of a telephone fraud scam. Working quickly with their bank and other third parties, we helped to recover a significant proportion of the stolen funds. A complaint has also been lodged with the Financial Ombudsman against the bank on grounds that it failed to satisfy its duty of care to the client in actioning the transactions and failing to undertake full/proper due diligence when processing the transactions. 
• Assisting a client with a fraud concerning a professional said to have been party to a large-scale fraud involving an international organised crime group though provision of professional services to assist the criminal aims of the group. The case has involved a long running investigation, two trials, three appeals and extensive legal argument as to extent of charges (whether merely conspiracy to defraud or assisting an organised crime group under the Serious Crime Act 2015).
• Conducting a forensic audit of an SME’s accounts to uncover that a senior employee had, over many years, diverted company funds to personal bank accounts. This resulted in the employee’s dismissal for gross misconduct and a settlement involving the transfer of property.
• Acting in an independent employment investigation into very serious allegations of fraud, misappropriation of public funds, bribery, and dishonesty against three directors of a public authority. The investigation concerned the directors conspiring to sign substantial settlement agreements to their own benefit.
• Numerous cases for factoring and invoice discounters concerning the manipulation of sales ledgers by raising ‘fresh air invoices’, notification of inflated invoices and retention of trust monies due to client. 
• Fraud concerning a company director accused of inflating his performance at annual reviews to secure bonus payments.
• Fraud concerning a professional accused of overcharging when billing at an hourly rate following an accusation by a former business partner upon dissolution of a business.
• Civil fraud by misrepresentation involving professionals advising clients how to mislead insurers to secure payment of extensive medical cover where such cover would not otherwise have been available.
• Civil fraud/bribery and corruption allegations involving buyers in a large multinational homeware and furniture seller. The buyers were said to have received significant benefits in kind from prospective suppliers.
• Advice in relation to COVID procurement fraud.
• Advising holiday-let business in relation to a criminal investigation in which it was alleged that a third party had utilised its services to facilitate money laundering.
• Tax evasion advice in respect of high value dealers and cash payments from red flag countries.

My business has been scammed, what immediate steps could I take? 

• Contact your bank immediately to inform it of what has happened, to confirm the bank account number to which the monies have been sent and to request that an indemnity be issued to the beneficiary account via ‘Share Point’. Your bank may be able to stop the transaction from going ahead or recover funds direct from the fraudster’s account.
• Contact the beneficiary bank account where your money was sent and let it know the account number and any further relevant information about the scam.
• Contact experienced legal representatives for urgent legal advice who can assist in freezing bank accounts via injunctive relief and trace funds through the civil courts, by issuing an application(s) for a Norwich Pharmacal Order(s).
• Report the crime to the police through Action Fraud (0300 123 2040), but note this is not an obligation. 

Can I get money back? 

• Depending upon where the fraudsters are and the location of the defrauded assets, it may be possible to get your money back. You may be able to obtain a freezing injunction over the fraudster’s assets in order to protect your money and issue court proceedings to recover it.
• Where litigation is contemplated or is a possibility, it is essential that the relevant documentation is preserved and that any electronic (and other) routine document destruction is stopped. Keep a record of any conversation/correspondence you/employees may have had with the fraudsters while the details are fresh in your mind.

The fraudsters have disappeared, are there any other options available to me?

• Contact your insurer to see if you have relevant policy cover for loss as a result of fraud.
• You may also be able to recover against your bank. Major UK banks have signed up to a code called ‘Contingent Reimbursement Model’ (CRM) to better protect victims of scams. All UK personal customers and in-scope business customers who have sent money via an APP (eg faster payments, Chaps) will be fully reimbursed if they are the victim of an APP scam and have met the required level of care. Seek further information from your bank and look to recover any loss through CRM.

Is there anything else I can do? How do I prevent this happening?

• If funds have been taken from a company account, undertake a thorough internal review of policy and practice, and investigate any employees who may have been involved with the transfer of funds.
• In certain circumstances, make a formal complaint to your bank/escalate your complaint to the Financial Ombudsman Service.
• To prevent recurrence, obtain relevant fraud training via your bank and enforce best practice in your domestic/business environment.

Should I report the fraud to the police?

• There is no obligation to report fraud to the police (although you may need to report it to a regulator if you are in a regulated business) and in doing so you may tip-off the fraudster causing assets to be moved abroad. Notifying the police can result in a loss of control over the matter.
• If recovery of your assets is your main priority, you may wish to pursue your civil remedies (freezing injunction and recoveries claim) first. Even is a fraudster is convicted, the criminal courts may not make a compensation order in full, or at all, in your favour.

A client-focussed, responsive team that works hand-in-glove with in-house counsel/GC in a commercial and effective way. Good knowledge of the law and tactical awareness leading to good outcomes.’

‘Paul Walsh assembles and leads an appropriately skilled and resourceful team well bringing his own clam and assured manner to difficult and complex disputes. He is ably assisted by the up and coming Jon Scally.’

‘Pragmatic and commercially focused. The team represent excellent value for money.’

‘Fiona Parry is calm, reassuring and commercially focused. She has good attention to detail without losing sight of the bigger picture.’

‘Excellent responsiveness and diligence in preparation.’

‘Paul Walsh – hands-on leadership and a real expertise in his field.’

The Legal 500 

• APP fraud – extent of the Quincecare duty
• Vishing and phishing - internet and telephone banking fraud – what to look out for
• Fraud recovery – law and practice from a Hong Kong legal perspective
• Law in action: responding to employee fraud
• Fraudster employees with their hands in the till? Prevention is far better than cure…
• Fundamental dishonesty and the risk of telling little white lies

The Legal 500