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16 Nov 2020

While many people associate business fraud and money laundering with Hollywood movies, in the business world, such things can and do occur fairly regularly.

And, while you as a new or an honest business owner would never dream of doing such things, it is important to know some of the basics surrounding the legal ramifications of these crimes.

Why? Because as your business grows and merges with other businesses via services or association, it is important to know what to expect if one of your associates is charged with such an offence and how this could potentially impact on your companies assets. So, in this article, we will be focusing on confiscation proceedings.

At ABV Solicitors, our fraud solicitor is able to offer you legal advice if you find yourself associated with a company that is undergoing confiscation proceedings. Or, alternatively, if you or a member of your staff made a mistake and are now on the receiving end of such proceedings, we can help you too! With a non-judgmental, informative and proactive approach, our team will help to get you through such difficulties with minimal stress to you.

Now, back to the basic guide on confiscation proceedings from our fraud solicitor!

What are confiscation proceedings?

A proceeding which is heard in the Crown Court, a confiscation proceeding is heard after a person has been convicted of a criminal activity which involves the illegal gain of money, such as money laundering or fraud. And, as any solicitor will inform you, certain fraudulent behaviours can actually be accidental, so if you are accused of such activities, contact our fraud solicitor as soon as you can!

Once the financial amount that was gained is determined by the police, the accused is required to pay it back; if they cannot financially manage to do so, then their entire assets will be seized.

What if the amount cannot be paid back?

There are many instances in confiscation proceedings where the accused either disagrees with the financial amount or simply cannot afford to pay it back.

In such cases, they will be required to provide evidence to this effect, such as financial statements and the amount may be lowered. But, in the future, if they make money that could be used to repay the proceeding, they may be forced to under a Section 22 Application.

What if I am contacted via association with the accused?

Unless you have been named in the investigation as being involved in illegal activity, it is unlikely that the police will contact you about the confiscation proceedings or ask you about the crime which was committed.

If the person accused is only associated with your business and names you when being questioned, then you will need to seek the legal advice of one of our solicitors at ABV. While you cannot foresee which people may be conducting illegal activities, if the formerly accused party wishes to trade business in the future, it may be wise to avoid association with them.