Insolvency Service Combats Fraud

Serious corporate abuse is a crime and, in the case of limited companies, can be investigated by the Insolvency Service. Operations to investigate companies suspected of wrongdoing are usually sparked by complaints from customers or insider tip-offs.

The Insolvency Service has a duty to investigate allegations if it is considered they pose a significant risk to customers, break the law, involve serious misconduct or suggest major irregularities in a company’s affairs. Fraud and the misappropriation of company assets are among the top two reasons why an investigation may be launched.

Active Companies Beware

The Insolvency Service has the power to investigate companies that are actively trading as well as those that have ceased trading, but not those involved in insolvency proceedings. It cannot investigate companies that have been formally dissolved.

In some circumstances, the Insolvency Service will apply for a court order to wind up a business and can also makes applications for directors to be disqualified. The Insolvency Service has the power to carry out civil investigations only. Therefore, information gathered during investigations are routinely passed to the police, enforcement agencies or regulatory bodies with the powers to carry out criminal investigations and prosecute.

Criminal Enforcement Agency

In January 2017, the Insolvency Service became responsible for the Criminal Enforcement Team, which works independently. It is the UK’s lead enforcement agency for corporate misconduct and insolvency-related fraud.

As well as detecting crime, the team works hard to deter fraud in both companies and by bankrupts and, in these cases, has the power to prosecute. Fraud is on the rise and everyone needs to be vigilant to reduce the number of victims.

Successfully Prosecute Fraudsters

Accurate and properly formatted transcriptions of audio recordings, including recorded interviews and material gathered as a result of covert operations, are vital to the successful prosecution of fraudsters. Alphabet Transcription Specialists offer a fast, high-quality and confidential transcription service for professional agencies.

Our transcribers are familiar with the complexities of fraud cases and understand the diligence required in preparing accurate transcriptions. To find out more, telephone +44 (0) 1707 260027, in confidence.