Conspiracy to defraud - lawyer guide

What is Conspiracy to Defraud?

Conspiracy to defraud is a common law offence in England and Wales. It occurs when two or more people agree to act dishonestly together to:

• Deprive another person of their property or rights; or

• Cause them financial loss.

The agreement does not need to be formalised, nor does the fraudulent act need to be carried out for the offence to be committed. The mere intention to defraud, coupled with an agreement to act upon it, is sufficient.

Key Elements of the Offence

• Agreement- there must be a meeting of minds between two or more people to carry out the fraudulent act.

• Dishonesty- the intention to act dishonestly and deprive another person of their property or rights is essential.

• Deprivation or Loss - the intended outcome of the conspiracy must be to deprive another person of something valuable, either financially or otherwise.

Examples of Conspiracy to Defraud

• Two friends agreeing to fake an accident and claim compensation from an insurance company.

• A business owner and employee conspiring to inflate invoices and embezzle from the company.

• A group of individuals colluding to manipulate the stock market through insider trading.

• Partners in a relationship planning to deceive one another during divorce proceedings to gain a financial advantage.

Criminal law sentencing and civil law liability

Conspiracy to defraud is a serious criminal offence with a maximum penalty of 7 years imprisonment and/or an unlimited fine. It can also lead to a criminal record, which can have significant consequences for employment, travel, and other aspects of your life. The actual sentence will depend on the severity of the offence, the value of the intended gain or loss, and the offender's previous criminal record.

The primary remedy in civil cases is an order for compensation but the court may issue an injunction to prevent further harm from the fraudulent scheme. This could involve restricting specific activities or ordering the return of misappropriated property.

Defences

If you are accused of conspiracy to defraud, you may have several potential defences available, depending on the specific circumstances of your case. These include:

• Lack of agreement -  you did not agree to participate in a fraudulent scheme.

• Lack of dishonesty - you did not intend to act dishonestly.

• Mistake of fact -  you acted under a genuine mistake about the facts of the situation.

• Duress - you were forced to participate in the fraudulent scheme against your will.

• Withdrawal - you withdrew from the conspiracy before any fraudulent act was committed.

In complex cases, financial experts, forensic accountants, and other specialists can be invaluable. They can analyse financial records, unravel intricate schemes, and present their findings in a clear and compelling manner for the court.

How we can help

If you have been investigated, arrested, or charged with conspiracy to defraud, it is crucial to seek legal advice immediately. Conspiracy to defraud is a serious offence with potentially life-changing consequences. Do not attempt to handle this situation alone Our specialist criminal lawyers are experienced in advising and representing clients including :-

• Advise you on your rights and potential defences.

• Represent you in police interviews and court proceedings.

• Negotiate with the prosecution on your behalf.

• Build a strong defence case to maximise your chances of a successful outcome.