Civil Fraud Solicitors in London & Birmingham

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Fraud costs businesses and individuals across the UK billions every year (an estimated £1.26bn was lost to fraud in 2020 alone). Our team of civil fraud solicitors have been successfully resolving legal matters related to fraud since 2014 and we have helped both victims of fraud and defendants who have been wrongfully accused of fraud.

We understand the importance of gathering sufficient evidence to build the strongest case possible before going to court, as well as the need for swift and decisive action to minimise the damages that a civil fraud case can cause to your life and reputation. Therefore, we are both thorough, proactive and discreet in our approach to ensure your best interests are protected.

Our expertise covers many types of civil fraud, including:

• Breach of trust in business contracts
• Misrepresentation claims
• Conspiracy to commit fraud
• Breach of confidentiality
• Breach of fiduciary duty
• Money laundering
• Bribery
• Knowing receipt
• Dishonest assistance
• Trading while insolvent
• ‘Boiler room’ fraud
• Invoicing fraud
• Mortgage fraud
• Unjust enrichment
• Fraud disputes related to trusts

We can also take remedial measures against fraudsters to protect your assets, including the use of interim relief, such as Freezing Orders, Disclosure Orders and Search Orders.

If you believe you have been defrauded or unfairly accused of fraud, you should seek legal help as soon as possible. You can contact our team on 0300 303 2071 or get in touch via email at info@witansolicitors.co.uk to receive a no-obligation consultation with one of our civil fraud solicitors in London, Birmingham or Northampton.

What is Civil Fraud?

Civil fraud refers to fraudulent activities or deceptive conduct in civil, non-criminal matters. Cases involve one party intentionally deceiving another party for financial gain or to cause harm. It encompasses various types of fraudulent activities and can occur in a wide range of situations, including contract disputes, financial transactions, insurance claims, and more.

The Elements of Civil Fraud

To establish civil fraud in a UK court, the following elements generally need to be proven:

• Misrepresentation: The defendant made a false statement or misrepresentation of fact.
• Intent: The defendant must have had the intent to deceive or be reckless regarding the truth.
• Reliance: The claimant relied on the false statement to their detriment.
• Damages: The claimant suffered financial or other losses as a result of the deception.

The Different Types of Civil Fraud

Civil fraud can take various forms, including but not limited to:

• Fraudulent Misrepresentation: Making false statements to induce a contract or transaction.
• Fraudulent Concealment: Hiding material information that should have been disclosed.
• Insider Trading: Illegally trading securities based on non-public, material information.
• Ponzi Schemes and Investment Fraud: Deceptive investment schemes that promise high returns but are unsustainable.
• Fraudulent Conveyance: Transferring assets to avoid paying debts or liabilities.
• Insurance Fraud: Submitting false claims to insurance companies.
• Identity Theft and Cyber Fraud: Stealing personal information to commit fraudulent acts online.

How We Can Help

With more than 100 years of combined experience in dealing with civil fraud cases, at Witan Solicitors, we have worked with both victims of fraud, as well as clients who have been wrongfully subjected to civil fraud action. Our team of dispute resolution and litigation experts is well-equipped to represent you at all stages of your case, from the investigative groundwork to the courtroom.

If you have been a victim of fraud, we can help you make a civil fraud claim in court, conduct the necessary investigation to collect evidence to support your case, as well as take action to recover your misappropriated assets or secure compensation from the fraudster.

If a civil fraud claim is made against you, we can investigate the situation and provide legal advice when the accusations against you have been exaggerated or unfounded, as well as when you don’t possess the assets to cover the amount claimed.

Making a Civil Fraud Claim

If you have suffered damage due to a conscious misinterpretation by a fraudster, Witan Solicitors can help you make a civil fraud claim against them. 

To have grounds for a civil fraud claim, four criteria need to be met:

• A false statement is made by the defendant
• The defendant is aware that the statement in question is untrue
• When the defendant made the statement, they did so with the intention that the claimant would rely on their statement 
• The claimant has suffered losses as a result of the defendant’s false statement

Once we know more about your case, our civil fraud solicitors will be able to advise you on whether you have a valid claim, what the best course of action is and how to trace and recover your assets. 

Civil Fraud Orders

Various legal tools and orders are available to parties involved in civil fraud cases to help them secure evidence, protect their rights, and ensure a fair and just resolution of the dispute. Some of these include:

• Interim Reliefs: These are provisional court orders that aim to preserve the status quo or protect the interests of the parties during the course of legal proceedings. Common interim reliefs in civil fraud cases include injunctions (restraining orders), freezing orders (preventing the disposal of assets), and search orders (allowing the search of premises).
• Disclosure Orders: Disclosure orders require parties to provide information and documents relevant to the case. This includes documents that may be harmful to their own case. In civil fraud cases, comprehensive disclosure is often essential to uncover evidence of fraud.
• Search Orders: Search orders, also known as Anton Piller orders, are granted by the court to allow one party to enter and search the premises of another party to preserve evidence. These orders are typically used in situations where there is a risk that vital evidence may be destroyed.
• Without Notice Applications: In some circumstances, a party may apply for an interim order or injunction without giving prior notice to the other side. This is done when there is a concern that providing notice could result in the destruction of evidence or undermine the effectiveness of the order.
• Freezing Orders (Mareva Injunctions): Freezing orders prevent the disposal of assets to ensure that funds will be available to satisfy a judgment.
• Norwich Pharmacal Orders: These orders require a third party, such as a bank or professional advisor, to disclose information about the alleged wrongdoer.
• Cherry-Picker Orders: Cherry-Picker orders permit the claimant to choose specific documents for disclosure without going through a complete disclosure process.
• Non-Party Disclosure Orders: These allow disclosure orders to be issued against third parties who may have relevant documents.
• Costs Orders: These specify which party will be responsible for the legal costs associated with specific actions in the case.

Tort of Deceit

The Tort of Deceit is a specific type of civil wrong recognised in UK law. It involves intentional deceit or fraudulent misrepresentation, where one party intentionally makes a false statement to another party, causing the victim to suffer a loss. To establish the Tort of Deceit, several key elements need to be proven:

• False Representation
• Knowledge of Falsity
• Intent to Deceive
• Reliance
• Causation

The Tort of Deceit is significant because it allows the victim to seek damages as a remedy. If all the elements are proven, the court can award compensatory damages to the claimant to cover their losses.

Prevent The Disposal of Misappropriated Assets

Our asset recovery solicitors can assist those who have lost money as a consequence of civil or commercial fraud in several ways to stop assets from being sold off while a civil action is pending.

One of the most effective tools is an interim freezing order or injunction, which can be used to limit any form of asset held by the defendant and any third parties on their behalf, including real estate, shares of stock, and bank accounts. When a defendant is subject to a freezing order, they must fully disclose all of their assets and any relevant third parties may also be required to produce information on all the assets they hold on behalf of the defendant. We might advise seeking a freezing order or injunction because this information can be extremely helpful in the asset tracking and recovery procedure. Find out more about how our injunction solicitors can help.

The court may issue a search and seizure order (also known as a search order) in the most severe instances of civil or business fraud. In cases when there is a significant risk that stolen property may be sold, this order permits things to be confiscated from the defendant’s properties.

Asset Tracing: Our Approach

When locating and retrieving misappropriated assets, our commercial litigation attorneys employ a variety of techniques. 

Information Gathering

This entails looking into important data sources including social media accounts and the Land Registry, often known as Companies House. These sources can offer crucial information for asset recovery and asset tracking, such as who owns a specific piece of property and how much money a corporation is currently making.

Piercing The Corporate Veil

Depending on the specifics of the situation, it can be more appropriate to file a claim against the employer of the defendant rather than the defendant themselves. It is possible to break the corporate veil in civil fraud cases, enabling victims of civil fraud to pursue the company’s directors who are accountable for their losses. 

Third-Party Disclosures

Third parties can be crucial to the asset recovery process since they frequently contain information that the defendant does not give or make available, such as banks, estate agents, and professional consultants. In some circumstances, it might be permissible to ask the court for a disclosure order to compel the revelation of information from a third party.

Third-Party Claims

If there is sufficient proof that a third person took part in the fraud or benefited from it, it may also be permissible to file a civil fraud suit against them. 

Throughout the civil fraud claims process, we have counselled and represented a large number of individual and business clients. Our fraud recovery solicitors evaluate the claimant’s evidence to determine the best course of action, file for temporary restraining orders to stop the sale of the assets while the dispute is in progress, represent clients in trial, and successfully recover clients’ assets.

Civil Proceedings or Criminal Proceedings?

Civil fraud cases and criminal fraud cases are distinct legal processes with different purposes, standards of proof, and outcomes.

Purpose

The primary purpose of civil proceedings in civil fraud cases is to resolve disputes between parties and provide a remedy to the victim of the fraud. The focus is on compensating the victim and rectifying any losses or damages suffered. Whereas, criminal proceedings are initiated by the state to punish individuals or entities for committing a crime, including fraud. The primary purpose is to enforce the law, maintain public order, and hold wrongdoers accountable.

Standard of Proof

The standard of proof in civil fraud cases is the balance of probabilities, meaning that the plaintiff (the party bringing the case) must demonstrate that it is more likely than not that the fraud occurred. In criminal fraud cases, however, the standard of proof is much higher, requiring proof beyond a reasonable doubt. This is a more stringent burden of proof, and the prosecution must demonstrate the defendant’s guilt with a high degree of certainty.

Prosecuting Authority

Civil fraud cases are typically initiated and pursued by the victim (plaintiff) or a private party seeking redress for the harm suffered. Criminal fraud, on the other hand, cases are initiated by a public prosecuting authority, such as the Crown Prosecution Service (CPS) in England and Wales or the Crown Office and Procurator Fiscal Service in Scotland. The state prosecutes the alleged wrongdoer on behalf of society.

Penalties

The primary remedy in civil fraud cases is compensation to the victim, usually in the form of damages. Other remedies may include rescission of contracts or injunctions. If a defendant is found guilty in a criminal fraud case, they may face penalties such as fines, imprisonment, probation, or community service. The focus is on punishment and deterrence.

Jury

Civil fraud cases are typically heard before a judge. Juries are not common in civil cases in the UK. Criminal fraud cases can be heard by a judge alone or by a jury, depending on the seriousness of the alleged crime. Serious criminal cases often involve a jury.

Legal Aid

Legal aid is generally not available for civil fraud cases, and individuals must fund their own legal representation or seek alternative financing arrangements. In criminal fraud cases, defendants may be eligible for legal aid if they meet certain financial criteria, ensuring access to legal representation.

Why Choose Witan Solicitors?

Being involved in civil fraud proceedings is a difficult experience, whether you are the claimant or the defendant. Disputes over assets can severely impact your livelihood and the reputational damage you sustain as a result can be hard to recover from. This is why our team of civil fraud solicitors is committed to finding and implementing the most efficient strategy to resolve your case as quickly and discreetly as possible. When you choose Witan Solicitors to represent you, you can rest assured knowing that you are working with experts in the field. 

• Resolving civil fraud cases since 1986
• Swift and proactive approach
• Reliable legal advice in simple terms
• Recognised by Legal 500
• Civil fraud solicitors in Birmingham, Northampton and London 

FAQ

Is fraud a civil or criminal matter?

Fraud can be prosecuted in both criminal and civil courts. You are not obliged to report fraud to the police but if you do, criminal proceedings could commence based on the authorities’ findings. Alternatively, you can contact professional civil fraud solicitors to make a civil claim which often provides faster resolution, better success rates and a higher chance of recovering your lost assets.

How do you win a fraud case?

For a civil fraud claim to be successful, you must be able to establish that you have been intentionally misled by the defendant who has done so knowing full well that they are providing misleading information that you would rely on, causing you to suffer losses. 

In a civil court, proving your case is based on the “balance of probabilities” or in other words – you have to convince the court that your fraud claim is most likely true. 

In criminal court, the proof has to be “beyond reasonable doubt” which is why criminal fraud cases have a much lower success rate with only 4% of crimes reported to Action Fraud being solved by the authorities.

When is it possible for civil fraud to occur?

A case of civil fraud stands when there has been deliberate withholding or misrepresentation of the truth or intentional dishonesty or deception of the truth. This type of fraud can also be referred to as commercial fraud.

What is the distinction between civil and criminal fraud? 

Civil fraud is a method for victims to seek redress in civil courts, typically to recover assets, seek compensation or obtain an injunction. 

Whereas, criminal fraud is a crime that can be prosecuted by authorities such as the Crown Prosecution Service (CPS) or the Serious Fraud Office (SFO). Perpetrators of this crime may face fines, a prison sentence or confiscation proceedings. 

Both civil and criminal fraud proceedings often run alongside each other; therefore, the prospect of a criminal lawsuit should not deter individuals or businesses from filing a claim. 

Should you report the fraud to the authorities or follow civil proceedings?

Even if they have decided to pursue a civil claim, no one is required to report fraud to prosecute authorities. Doing so can cause the situation to spiral out of control. The police, for example, have their own process for gathering and securing evidence and assets. Moreover, the standard of proof in civil cases is much lower than in criminal cases; the claimant must only demonstrate that civil fraud occurred on the balance of probabilities. 

If criminal fraud is reported, the civil claim may be put on hold until the criminal proceedings are completed. This could take years in serious and high-value cases.

Can someone’s assets be frozen?

To receive a freezing order, the applicant must demonstrate to the court that: 

• They have a legitimate cause of action 
• They have a compelling argument 
• There is a real possibility that the respondent will spend their assets 
• The freezing order is both just and convenient

In addition, the applicant must: 

• Have ‘clean hands’ at the proceedings, which means they must be free of any wrongdoing
• The applicant must file a freezing order application as soon as possible

The applicant is required to provide full disclosure of all information. In most cases, applicants are required to make an undertaking to pay damages to the respondent if it is later demonstrated that the freezing order should not have been issued.

Applications for freezing orders are frequently submitted “without notice” to stop the respondent from selling off their assets before they can be frozen. As a result, the judge will schedule a subsequent hearing when the respondent may ask for the order to be revoked or modified.

How does a freezing order affect assets?

All assets may be frozen by a freezing order, including cash in bank accounts, real estate, stocks and shares, vehicles, and possessions held in trusts or otherwise beneficially for another person. 

Depending on how the order is written, it might only apply to the amount of the civil fraud claim (a “maximum sum order”). As an alternative, it might be used to describe a particular asset or all of the respondent’s assets.

Do freezing orders affect assets overseas?

Yes, a freezing order can prevent someone from relocating or selling assets both domestically and abroad. The country in which the assets are kept must take action in addition to the global freezing order. A freezing order in England or Wales may not always result in the success of international asset recovery.

How do I challenge a freezing order on my assets?

Since freezing orders and injunctions are frequently obtained without warning, meaning the affected person is unlikely to learn about them before the order is issued. However, the court will schedule a further hearing, often within seven days, giving them the chance to contest it.

Successful challenges are based on the argument that the applicant failed to establish the legal standards necessary to issue a freezing order, such as the absence of a genuine risk that the respondent will lose control of their assets. The respondent may also claim that a freezing order is excessively oppressive or interferes with their ability to continue paying their regular living, business, or legal expenditures. 

If it is determined that the claimant obtained a freezing order against the respondent in error, they may be awarded damages.

How can I obtain a search order to seize evidence or assets?

The following legal prerequisites must be met by the applicant in order for a search warrant to be granted: 

• They have an “extremely strong prima facie case,” which implies that until it is refuted, the case will stand
• Due to the respondent’s deceit, the applicant’s interests have suffered significant harm or risk of harm 
• There is proof that the respondent possesses materials or objects that could be used against them 
• The respondent has a “real possibility” of getting rid of the item or items. 
• Only assets located within the jurisdiction are subject to search orders