Member Vetting Process
Log In
About
Members
News
Awards
Contact
Member Vetting Process
Log In
Log In
Member Search
Specialism
Law Firm
Advisory Firm
Country
Afghanistan
Albania
Algeria
Angola
Anguilla
Antigua and Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belgium
Belize
Bermuda
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
British Virgin Islands
Bulgaria
Cameroon
Canada
Cayman Islands
Chile
China
Colombia
Congo (Dem. Rep.)
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Djibouti
Dominican Republic
Egypt
El Salvador
Estonia
Finland
France
Germany
Ghana
Gibraltar
Greece
Guatemala
Hong Kong
Hungary
Iceland
India
Indonesia
Iran
Israel
Italy
Jamaica
Japan
Jersey
Kenya
Korea (South)
Kosovo
Kuwait
Lebanon
Liechtenstein
Luxembourg
Macau
Macedonia
Madagascar
Malaysia
Malta
Mauritania
Mauritius
Mexico
Monaco
Morocco
Netherlands
New Zealand
Nicaragua
Nigeria
Norway
Pakistan
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Republic of Ireland
Romania
Russia
Saint Kitts and Nevis
Saint Lucia
Saudi Arabia
Senegal
Serbia
Seychelles
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
Thailand
Togo
Trinidad and Tobago
Tunisia
Turkey
Turks and Caicos Islands
UAE
Uganda
UK
Ukraine
Uruguay
USA
Vietnam
Zimbabwe
Practice Area
Abuse of Dominance
Accountancy
Accounting and Tax
Acquisition Finance
Administrative
Admiralty
Agribusiness
AI
Alternative Asset Management
Alternative Dispute Resolution
Alternative Finance
Arbitration
Art
Asset Protection
Asset Protection Structures
Audit & Assurance
Audit & Finance
Audit and Accounting Services
Audit and Administration
Aviation
Banking & Finance
Banking Litigation
Bankruptcy
Broker Risk Management
Business
Business Formation
Business Immigration
Capital Markets
Citizenship
Citizenship by Descent
Civil
Civil Litigation
Civil Rights
Commercial
Commercial Arbitration
Commercial Contracts
Commercial Leasing
Commercial Litigation
Commercial Litigation
Commercial Property
Commercial Real Estate
Commercial Tenancy
Commodities Trading
Commodity Disputes
Company
Company & Fund Administration
Company Formation
Competition
Compliance
Compliance & Regulatory
Construction
Contentious Probate
Contract
Contractual Disputes
Copyright
Corporate
Corporate Accountant & VAT
Corporate Criminal
Corporate Finance
Corporate Governance
Corporate Immigration
Corporate Investment
Corporate Restructuring
Corporate Risk Management
Corporate Services
Corporate Support Services
Corporate Tax
Costs
Criminal
Criminal Defence
Criminal Fraud
Cross Border Estates
Cross-Border
Cross-Border Transactions
Cultural Property
Customs Advisory
Data & Innovation
Data Privacy
Data Protection
Debt Collection
Debt Recovery
Defence & Security Procurement
Digital Transformation Consultancy
Dispute Resolution
Divorce
Domestic & International Tax
Due Diligence
Economic Criminal
Employee Benefits
Employment
Employment Litigation
Energy
Energy & Natural Resources
Environmental
ERISA & Employment Benefits
Estate Planning
European
Expert Witness Property Valuation
Family
Fiduciary
Financial Services
Financial Services & Regulatory
Financial Transactions
FinTech
Fiscal
Foreign Direct Investments
Foreign Investments
Franchise
Fraud
Full Service
Fund Administration
Gaming
Health & Safety
Healthcare
Healthcare M&A
Hedge Funds
Human Rights & Labour Rights
Immigration
India Desk
Industrial Relations
Information Technology
Infrastructure
Inheritance
Insolvency
Insurance
Insurance & Reinsurance
Insurance Litigation
Intellectual Property
International Arbitration
International Business
International Corporate
International Debt Collection
International Dispute Resolution
International Employment
International Franchise
International Fraud
International Litigation
International Private
International Real Estate
International Succession
International Tax
International Tax Planning
International Trade
International Trade & National Security
Investigations
Investment
IP Litigation
IT
IT Services
Joint Ventures
Labour & Employment
Leasehold Enfranchisement
Legal Malpractice
Legal Risk Management
Life Science Patent
Life Sciences
Litigation
Litigation & Arbitration
M&A
Maritime
Maritime Arbitration
Matrimonial
Media & Entertainment
Mediation
Mediation & Arbitration
Medical Malpractice
Mining
Neuroradiology Expert Witness
New Technologies
Oil & Gas
Orthopaedic Expert Witness
Patent Litigation
Patent Prosecution
Patents
Payroll Accounting
Personal Injury
Personal Injury - Plaintiff
Pharmaceutical Sector Patents
Pharmaceuticals & Life Sciences
Private Client
Private Equity
Private Funds
Probate & Inheritance
Products
Project
Project Finance
Property Valuation
Public Procurement
Real Estate
Real Estate - Property
Regulatory
Regulatory & Compliance
Renewable Energy
Restructuring
SaaS/PaaS
Securities
Securities Litigation
Shipping & Admiralty
Shipping & Maritime
Shipping Finance
Sports
Start Up
Succession
Tax
Tax Litigation
Tax Planning
Tax Relocation
Tax Services
Tax Structures
Technology
Telecommunications
TMT
Trademark
Transaction
Transfer Pricing
Transportation
Trust & Estates
Trust Administration
Venture Capital
Wealth & Estate Planning
Wealth Management
Wealth Planning
Whistleblower
White Collar Crime
Wills, Trusts & Estate Planning
Workers Compensation
Workplace Law & Investigations
Civil Fraud: Common Categories Explained
Published: Monday, November 4, 2024
The UK legal system differentiates between two main types of fraud: civil fraud and criminal fraud. Both forms of fraud may involve deceit, misrepresentation, or intentional concealment of the truth to gain a dishonest advantage over another party. They also differ significantly in several respects, including who initiates the legal action, the burden of proof required, and the potential penalties that can be imposed on the defendant amongst others.
When trying to differentiate whether your situation falls under civil fraud and criminal fraud, remember, civil fraud is pursued by the victim in civil courts, while criminal fraud is a criminal offence prosecuted by UK authorities in criminal courts.
In
criminal fraud
, the person alleged to be responsible is normally prosecuted by the State and, if found guilty, will be punished, according to the severity of the offence, by penalties such as a fine or imprisonment.
In cases of
civil fraud
, the wronged party may pursue the recovery of funds or assets and/or seek compensation or damages. The outcome in a civil trial is determined by a judge.
In this article, we highlight common types of civil fraud claims that are pursued in court and the remedies available to those who have suffered financial harm due to fraudulent misrepresentation or deceit. Understanding these nuances can help individuals and businesses better protect their interests and navigate complex legal disputes.
Civil Fraud
Frauds derived from common law, generally known as torts, rely heavily on ‘case law’ established from previously decided litigation and which provides guidance for the conduct of subsequent court proceedings.
Claims are pursued by the injured party through the appropriate Civil Court according to the nature, size and importance of the loss claimed to have occurred.
It is important for both individuals and businesses, regardless of their size or structure, to appreciate the general nature of fraud. This knowledge helps prevent accidental involvement in fraudulent activities and recognise the signs that they are, or may potentially become, victims of both civil and criminal fraud.
Anyone who has been a victim of fraud can report the matter to the police, which may lead to a criminal prosecution. In addition it is open for the aggrieved party to pursue the appropriate remedy through a Civil Court. Both criminal and civil cases for the same fraud may be conducted simultaneously, although very careful consideration will be required to determine exactly how and when to proceed.
Fraud by False Representation
An action for misrepresentation may be brought in respect of a misrepresentation of fact or law. This arises where one party makes an untrue statement of fact or law which induces the other party to enter into a contract, resulting in loss to that party.
There are three types of misrepresentation:
Fraudulent misrepresentation: where a false representation has been made knowingly, or without reasonable belief in its truth or recklessly as to its truth, (also known as the tort of deceit).
Negligent misrepresentation: one which is made carelessly in breach of duty to take reasonable care owed by the one party to the other that the representation is accurate.
Innocent misrepresentation: is one made which is neither fraudulent nor negligent.
The general remedies, subject to various limitations, available before a Civil Court are:
rescission of the contract, i.e. cancelling or unwinding the contract, placing the parties in the position they were in before entering the contract, and/or
a sum in respect of damages.
Unlawful Means Conspiracy
In order to establish such a conspiracy five elements must be shown:
Two or more persons agree, or in some way informally combine, to injure another person. It is possible for a director of a company to conspire with that company against another.
The conspirators must carry out a deliberate act.
The deliberate act involves unlawful means such as the commission of another tort, a breach of contract, etc.
One of the purposes of the conspiracy must be to cause injury to the victim.
Damage must be suffered by the victim.
Bribery
A bribe describes any advantage offered to a person with the intent of persuading them to perform a specific action, typically for financial or personal gain of the person offering the bribe.
A bribe of this nature might occur, for instance, when a payment is made during a commercial transaction to an individual acting in the position of an agent, in order to influence the terms of a contract without the knowledge of his/ her Principal, who is a party to the contract.
In other words, it is a ‘secret payment’ designed to influence an outcome without the knowledge of other interested parties.
A Claimant seeking damages arising from such activity does not have to prove the dishonest nature of the bribe as this will be presumed. However, if the payment is regarded as being too small and insignificant to cause any worthwhile conflict of interest, it will probably not be regarded as being sufficient to represent any significant influence.
Generally, a Court will have to consider whether there is a ‘real possibility’ that the bribe amounted to a detrimental conflict of interest which occasioned the alleged resultant damage.
Dishonest Assistance
Dishonest assistance arises when a person assists or facilitates a dishonest or fraudulent act of a wrongdoer.
There must be a breach of trust or fiduciary duty by another involving a dishonest act or omission. Such dishonesty may be actual dishonesty or ‘blind eye’ dishonesty, where a person suspects a dishonest act but deliberately avoids ascertaining the true position.
Breach of Fiduciary Duty
A fiduciary is a person who has assumed a position involving a high level of trust thereby creating a relationship of trust and confidence.
Fiduciary duties include:
acting in good faith,
avoiding conflicts of interest,
not profiting from the privileged trusted position.
Common instances where a fiduciary duty may be created include instructing someone to conduct a sale of property, a business, manage a portfolio of shares or negotiate a confidential contract.
A fiduciary who has profited from their breach will be liable to account for the profits that they have made, regardless of whether the profits would have been made had they not breached their fiduciary duty.
How Can We Assist?
If you are facing allegations of
civil fraud
or
criminal fraud
, the consequences can be severe, impacting reputation, finances and potentially your freedom. At KANGS, we understand the complexities of fraud cases and the potential consequences involved.
The
team at KANGS
brings a wealth of experience gained from supporting clients through a wide range of civil and criminal fraud cases, covering virtually every conceivable nature of fraudulent activity. Contact us using the details below for a confidential consultation with our skilled solicitors:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in
London
,
Birmingham
, and
Manchester
. Alternatively, discussions can be held through live conferencing or telephone.
Share on Facebook
Share on Twitter
Share on LinkedIn
Hamraj Kang
Kangs Solicitors
Country:
England, UK
Practice Area:
Fraud
Website:
kangssolicitors.co.uk
Phone Number:
020 7936 6396
Email:
hkang@kangssolicitors.co.uk
Fax:
N/A
Hamraj acts for corporate and individual clients in investigations brought by the major UK law enforcement agencies including the SFO, HMRC, FCA, NCA, CMA, CPS, BEIS, ICO, Trading Standards and a wide range of regulatory bodies. He has particular expertise in HMRC investigations and prosecutions including MTIC & VAT fraud, money laundering, tax & duty evasion and regularly conducts cases throughout the country. There are few solicitors nationally who can match Hamraj’s experience of complex multi-million pounds MTIC and VAT fraud cases as he acted in many such cases in his career. He has considerable expertise in the areas of money laundering, bribery & corruption and insider dealing, having been instructed by a number of PLCs and senior company executives on such matters. The work is often complex, multi-jurisdictional and necessitates overseas travel which has led to Hamraj working in numerous overseas jurisdictions. Hamraj advises corporate and individual clients both during and in the immediate aftermath of a dawn raid when quick, effective and incisive advice is required to protect the legal rights and reputation of the client. He has considerable experience of representing clients in interviews with all the leading law enforcement agencies including the SFO, HMRC and the NCA. He is admired for his novel tactical thinking and possesses a proven track record of guiding clients to a successful conclusion in many difficult and demanding cases. As a result of working on high profile and complex fraud cases, Hamraj’s client base is both national and international ranging from publicly listed companies to individual clients. Due to his expertise and experience in international financial crime investigations, Hamraj is also instructed in complex extradition cases often with a financial crime background involving allegations such as money laundering, wire fraud, bribery and corruption. He accepts instructions involving all jurisdictions but most notably the USA, Russia, CIS countries, India, Pakistan, Africa, the Caribbean, South America and the Far East. Civil Fraud & Asset Recovery In addition to criminal fraud, Hamraj advises in relation to civil fraud matters acting for both claimants and defendants. His clients range from large corporations to private individuals with the work often including early action and interim reliefs. The areas of work include: Cryptocurrency disputes The conduct of internal investigations on behalf of corporate clients Obtaining and responding to freezing orders Obtaining and responding to search orders Norwich Pharmacal orders Receivership orders The civil fraud and asset recovery High Court litigation for claimants and defendants includes allegations of fraudulent misrepresentation, breach of fiduciary and directors’ duties, unjust enrichment, unlawful means conspiracy, bribery, deceit, carousel/MTIC fraud, boiler room fraud and bogus investment schemes. Civil Recovery | POCA Hamraj is recognised by Chambers UK as a leading lawyer in the area of proceeds of crime and asset forfeiture, being one of only six solicitors ranked in Band 1 in the country. His work includes civil recovery proceedings under Part 5 of POCA such as Property Freezing Orders, Civil Recovery Orders and Account Freezing Orders. Hamraj is also able to advise in relation to Interim Freezing Orders and Unexplained Wealth Orders. HMRC Tax Investigations | Tax Tribunals There is often a considerable overlap between criminal and civil fraud proceedings and HMRC civil tax investigations. Hamraj regularly advises both corporate and individual clients in relation to HMRC civil tax investigations, VAT Assessments including Kittel Assessments as well as COP8 & COP9 investigations. The work includes representation before the First-tier Tax Tribunal and the Upper Tribunal in relation to VAT Assessments, Kittel VAT Notices, Direct Tax Appeals, Personal Liability Notices, Condemnation Proceedings and Excise Duty matters. Disciplinary | Regulatory | Sports Work Hamraj has represented a number of professionals facing criminal and regulatory allegations including accountants and other financial professionals, solicitors, doctors, dentists and pharmacists. He has developed an excellent understanding of the regulatory framework and codes of professional conduct governing the professions. In recent years, Hamraj has successfully represented a number of solicitors in serious criminal fraud prosecutions and achieved their acquittal which has resulted in a successful outcome in associated SRA disciplinary proceedings. Hamraj has represented many individuals from the sporting world (mainly football, cricket, horse racing and boxing) and is regularly instructed by a number of Premier League and Championship Football Clubs. Serious Criminal Work Hamraj also undertakes serious criminal work such as historic sexual allegations, murder, corporate manslaughter, drugs offences and serious driving offences, having acted in many high-profile cases of this nature. Clients include football clubs, members of the professions, company executives and public figures from the world of entertainment, politics, media and sport. Hamraj places the issues of confidentiality, privacy and reputation management at the forefront of his strategy when conducting cases. Matters are dealt with the utmost sensitivity and complete discretion. He always adopts a strong and proactive approach to investigations with the overriding objective to bring each matter to a successful and swift conclusion, and where possible, to avoid court proceedings and any adverse publicity for his client.
View Profile
Member Introduction
Terrence M. Dunn
Einbinder Dunn & Goniea LLP
New York, USA
View Profile
Stephen A. Malley
Law Offices of Stephen A. Malley
California, USA
View Profile
Mark Krasner
Blanchard, Krasner and French
Nevada, USA
View Profile
Koen Lozie
Aver Associates
New Hampshire, USA
View Profile
The Lawyer Network in numbers
0
+
Members Firms
0
+
Countries
0
+
Practice Areas
0
+
Member Firms
Total Staff