Defraud meaning

LC&F sues over £20m transfers linked to Ponzi scheme Administrators, in a High Court filing dated 24 September 2025 and brought on behalf of LC&F, assert that Global Currency Exchange Network Ltd and Global Custodial Services Ltd, which operate jointly as GC Partners, processed transfers exceeding £20.3m while suspecting the funds could be tied to fraud. The claim, only recently disclosed, states GC Partners went ahead despite those doubts, and sets out that the firms handled the instructions under scrutiny for LC&F... According to the particulars, GC Partners breached fiduciary duties and acted negligently by executing a small number of substantial transactions at the direction of LC&F director Michael Thomson. The pleading further alleges the defendants had reasonable grounds to believe the payment instructions were attempts to defraud LC&F, yet still carried out the transfers identified in the case...

The UK Supreme Court has unanimously confirmed findings that Tradition Financial Services is liable to administrators seeking to recover tax debts due to HMRC, stemming from its part in arranging carbon credit trades over fifteen years ago. The justices determined that by sourcing purchasers for the credits, the firm came within section 213 of the Insolvency Act 1986 (IA 1986), which permits liquidators to ask the court to order contributions from ‘any persons’ who knowingly take part in conduct intended to defraud creditors. Tradition Financial Services — the London arm of broking heavyweight Compagnie Financière Tradition SA — acted as a third party to the trades and neither directed nor controlled the companies executing them. The deals formed part of a wider €5bn carbon trading fraud that jolted global markets nearly twenty years back. Nonetheless, the court held that, in insolvency, anyone who facilitates a fraudulent business is caught by the statute where they know the company’s business is being carried on for any fraudulent end. As the court explained,...

R v Hayes; R v Palombo [2025] UKSC 29 Background The appellants, Tom Hayes and Carlo Palombo, challenged their convictions for conspiracy to defraud, in August 2015 and March 2019 respectively. The allegation was that, together with others, they sought to influence crucial benchmark interest rates underpinning financial markets: for Mr Hayes, the London Inter‑bank Offered Rate (LIBOR); and for Mr Palombo, the Euro Inter‑bank Offered Rate (EURIBOR). A benchmark is an interest rate designed to mirror the prevailing cost of borrowing within a market, providing an indicative snapshot at a given moment. Such a rate serves as a reference for numerous transactions, among them financial derivatives and similar arrangements. Contributing banks were required to provide the rate at which that institution (for LIBOR) – or a prime bank (for EURIBOR) – could obtain funds at a particular time. The submissions were then averaged and trimmed to produce the figure released for that day, which served as the published benchmark...

This Practice Note provides a concise overview of bankruptcy and its effect on legal proceedings from a dispute resolution standpoint, summarising key points in practice... What is bankruptcy? Bankruptcy is an insolvency route for individuals. It applies to individuals only. Prior to 6 April 2016—and in contrast to corporate liquidation—only the court had power to make an individual bankrupt. From 6 April 2016, a new bankruptcy applications regime took effect, replacing debtors' bankruptcy petitions, though creditors' petitions remained unaffected. Petitions lodged by debtors before that date were unaffected; now, anyone seeking their own bankruptcy must file an online application decided by an adjudicator—an official of the Insolvency Service—rather than the court. For more detail and background, see News Analysis: New bankruptcy applications regime to come into force. Once a bankruptcy order is made—by the court or by the adjudicator—it releases the debtor from liabilities owed to creditors (subject to certain statutory exceptions) and bars unsecured creditors from starting—or continuing with—any legal process against the bankrupt or their property...

This Practice Note sets out the constituent parts of the offence of fraudulent trading in section 993 of the Companies Act 2006, and, drawing on case law, shows how the courts construe those parts. It covers the sanctions for fraudulent trading and potential sentences, reflecting any pertinent considerations and aggravating aspects. It also addresses ancillary orders available on conviction... Fraudulent trading A company commits the offence of fraudulent trading contrary to section 993 of the Companies Act 2006 (CA 2006). Section 9 of the Fraud Act 2006 (FrA 2006) criminalises fraudulent trading by sole traders, partnerships, trusts and other non-corporate entities. See Practice Note: Fraudulent trading under the Fraud Act 2006. The CA 2006, s 993 offence is triable either in the magistrates' court or in the Crown Court... Elements of CA 2006 offence of fraudulent trading The offence comprises two limbs: carrying on a company's business with intent to defraud creditors of the company or the creditors of any other person, which...

Fraud by false representation This Practice Note considers the offence of fraud by false representation under section 2 of the Fraud Act 2006 (FrA 2006), read together with FrA 2006, section 1. The constituent elements are: making a false representation dishonestly knowing that the representation is, or might be, untrue or misleading with the intention of obtaining a gain for the defendant or another, causing loss to another, or exposing another to the risk of loss The offence spans a wide range of behaviour. No actual gain or loss is required, and the representation need not in fact deceive anyone for FrA 2006 liability to arise. The offence is complete once a false representation is made with the necessary knowledge, dishonesty and intent, and it is immaterial whether anyone is aware of it... You may also be interested in the following Practice Notes: Fraud by failure to disclose and abuse of position Obtaining services...