Conspiracy to Defraud

If you or your business are under investigation, have been arrested, invited for a voluntary interview, charged, or face proceedings for any allegations relating to conspiracy to defraud, our proactive and leading team at JMW can provide expert advice, assistance, and representation.

The team is ranked top for Fraud by the Legal 500, as well as Chambers and Partners. We represent individuals and businesses in the most high profile of cases where the fraud allegation is being investigated or charges have been authorised, as a conspiracy to defraud offence.

We act for individuals and businesses throughout the UK and have the skill and expertise to ensure you receive proactive representation from the outset, and are best protected during both the investigation stage and any prosecution. We have an exceptional track record of success.

You should contact JMW immediately if you:

• Have received a notice that you are under investigation
• Have received a restraint, production or freezing order
• Have been the subject of a dawn raid
• Have been invited to an interview under caution
• Face a criminal prosecution

Contact our specialist fraud solicitors today to discuss your situation in more detail - we offer a free initial consultation for all cases. Call us on 0345 872 6666 or complete our online enquiry form to request a call back.

How JMW Can Help

When you contact us regarding your conspiracy to defraud issue, subject to formal instruction, we can provide you with the advice, assistance and representation immediately. Our leading expert solicitors understand the weight of being accused of a serious offence and can guide you through any aspect of the investigation or responding to a prosecution.

Having been recognised by prestigious legal guides such as The Legal 500 and Chambers & Partners as a top UK law firm, you can be confident that you have the support of award-winning solicitors at your back when working with JMW.

We can help you with every aspect of your case, mediate with the other parties involved, and represent you at court and throughout the proceedings. We are experienced in dispute resolution and you can rely on us to represent your interests.

Types of Conspiracy to Defraud

A ‘conspiracy to defraud’ is a common-law offence and is triable only on indictment. It was expressly preserved in accordance with section 5(2) of the Criminal Law Act 1977 (‘CLA 1977’).

It has no precise definition in the CLA 1977 but can be used to prosecute cases relating to a whole array of different facts. A common law conspiracy is wider than a statutory conspiracy as it does not require an agreement to be in relation to committing a specific substantive criminal offence.

To understand what is meant by ‘conspiracy to defraud’, one must consider the case law (i.e. previously determined cases) where the judiciary has defined what it understood parliament’s intentions to be.

The offence has been defined in case law as:

• Economic loss: an agreement by two or more [persons] to deprive a person of something which is theirs, would be theirs or they are entitled to, [or] an agreement by two or more by dishonesty to injury some proprietary rights of their suffices to constitute the offence
• Non-economic loss: an agreement to deceive a person into acting contrary to the duty they owe to their clients or employers

A conspiracy to commit a particular fraud can be defined under the relevant legislation.  Under section 1 of CLA 1977 it defines what a ‘conspiracy’ is and it can be summarised as an agreement between people to commit an offence or offences, and whether an offence is carried out is irrelevant.

The unlawful agreement can be alleged by the prosecution in a number of different ways and the type of offences are covered under the Fraud Act 2006. This piece of legislation came into force on 15th January 2007 and not only helped fill a number of gaps but also created additional offences. These offences are known as substantive offences.

The three main offences it created were:

• Fraud by false representation
• Fraud by failing to disclose information
• Fraud by abuse of position

The Fraud Act 2006 also assisted in creating offences for those who may be found in possession of articles for the use in fraud(s) or making/supplying articles for the same use.

In addition, it helped to strengthen historic legislation in the tackling of fraudulent trading offences. The Fraud Act 2006 still applies in respect of sole traders, companies and corporate bodies that are governed by the Companies Act 2006, in particular, section 993 - Offence of Fraudulent Trading.

Penalties and Sentencing for Conspiracy to Defraud

Convictions for conspiracy to defraud are taken very seriously, with potential penalties including:

• A maximum sentence of 10 years’ imprisonment
• Unlimited fines, especially for companies or individuals involved in large-scale conspiracies
• Ancillary orders, such as disqualification from being a company director or compensation orders to repay victims

Because conspiracy to defraud is tried in the Crown Court, the case will be heard by a judge and jury. Sentencing takes into account factors such as the scale of the conspiracy, the number of victims, and any financial losses incurred.

What Elements are Required to Prove a Conspiracy to Defraud?

To prove a defraud conspiracy, the prosecution must be able to prove a number of things:

• Agreement: there must be an agreement between two or more persons. This agreement does not have to be formal, as long as it is provable
• Intent to defraud: the parties must have an intention to defraud another person or group of people
• Dishonesty: the agreement must involve dishonest means, such as misrepresentation, deceit, or false promises
• Potential prejudice: there must be a likelihood that the agreement could cause financial loss or other prejudices to the victim, even if this loss does not actually occur

How are Investigations Conducted in Cases of Conspiracy to Defraud?

Investigations in cases of conspiracy to defraud are typically complex and thorough, as they require uncovering the nature of the agreement, the parties involved and the intent to defraud. 

Here is how investigations are generally conducted:

• Initial assessment: the investigation usually begins with an assessment of the complaint or suspicion, examining the evidence available and determining the scope of the investigation
• Engaging with specialists: often, specialised fraud investigators, forensic accountants or other experts are involved to analyse complex financial records, communication or other evidence
• Gathering evidence: the investigators collect evidence through various means, including interviewing witnesses, examining documents, conducting surveillance and utilising technological tools to analyse digital footprints
• Cooperating with authorities: in cases involving multiple jurisdictions or international borders, investigators may liaise with foreign law enforcement agencies, regulators or other authorities to obtain necessary information and coordination
• Legal proceedings: if sufficient evidence is found, the case may proceed to legal action, where charges are laid, and the matter is brought before the court

Defence Strategies for Conspiracy to Defraud

Successfully defending against a conspiracy to defraud offence requires a deep understanding of the law and careful preparation. Common defence strategies include:

• Lack of agreement: arguing that no real agreement to commit fraud existed between the parties
• Lack of intent: demonstrating that there was no intention to act dishonestly or defraud anyone
• Mistake of fact: showing that the accused’s actions were based on a misunderstanding, rather than a deliberate intent to deceive
• Withdrawal from conspiracy: if a defendant can prove they withdrew from the conspiracy before the fraud was carried out, they may avoid liability

Our expert conspiracy to defraud solicitors will work with you to develop a defence tailored to your case and challenge the prosecution's evidence at every stage.

Common Scenarios in Conspiracy to Defraud Cases

Conspiracy to defraud can occur in many forms, and it is not limited to large corporations or financial institutions. 

Common scenarios include:

• Collusion in price-fixing among businesses to defraud consumers
• Serious high value fraud
• Mortgage or loan fraud involving false representations on applications
• Investment frauds - for example, a Ponzi scheme where individuals conspire to defraud investors with promises of unattainable returns
• Staged accidents to claim fraudulent insurance payouts
• Tax evasion - an agreement to defraud HM Revenue & Customs

Regardless of the nature of the conspiracy, the offence lies in the agreement and intent to defraud, even if the fraudulent act is never carried out.