The provision of false information in a loan application to deceive a lender into providing finance.
This offence can be committed in different ways: the most common types of fraud are initiated at the application stage, where, either the personal details of the applicant are false, (to conceal the identity of the applicant), or where the financial information provided by an applicant is deliberately false.
The former is done to obtain funding with no intention of paying it back. The latter offence is committed where the lender would otherwise reject the application due to the bad credit information or poor financial standing of the individual or company applying for the loan.
Lenders usually carry out stringent checks on the identity of the applicant as well as the financial information provided. Usually the element of deception therefore does not stop with the loan application, and is carried on with the production of false documents, and accounts to vouch for the false information provided in the application.
Company accountants will prepare a set of business accounts based on the information provided by their clients. Accordingly, if information is misrepresented to the accountant, this will be reflected unwittingly by them in the accounts, which in turn will mislead the lender when considering the loan application.
Richard Freeman (AKA Mr. Technicality) is one of Scotland's most prominent Solicitor Advocates with the skills, decades of experience and technical expertise to vigorously defend your position.
Do not delay, time is vital in order for us to properly examine the evidence against you, contact potential witnesses, ensure timelines are consistent with the evidence and investigate many other aspects in order to create your strongest legal defence.
Call our national helpline 0800 567 7810 now or our local numbers. Alternatively, complete a contact form or request a call back.
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An example of this is in a case where we acted for a director who owned a company involved in the construction industry. An application was lodged for funding in excess of three million pounds. The company balance sheet showed assets in the form of plant and machinery which the company held, and which formed the basis of a security to the lender by way of a bond and floating charge. When the company defaulted on the loan, it was discovered that the company did not in fact own the plant and machinery but had in fact leased them from a sister company. As they were not assets of the company, they could not therefore form part of the lender?s security, leaving the lender unable to recover all the funds.
Had the director known about this when applying for the finance, the deception would have amounted to a fraud. A forensic analysis of the arrangement between the two companies was required to identify that this misrepresentation was a genuine but mistaken belief on the part of the director, and therefore not a fraud.
This example illustrates that sometimes there can be a fine line between an intention to deceive and a genuine mistake. This can make all the difference to the question of fraud. Criminal Defence Solutions are highly adept at analysing and scrutinising documentation. We also have as part of our team, expert defence forensic accountants who can assist in extrapolating vital information to defend a fraud charge.
It is important to ensure that you have access to all financial documents at an early stage, in order that your defence can be fully prepared. Often in these circumstances the documentation can head off a lengthy prosecution.
This is a serious offence and can often result in a term of imprisonment. The maximum term being 5 years if prosecuted in the sheriff court. The court will take into account the level of deception and the amount of finance defrauded, as well as whether there has been any recovery. As in every offence the court will also look at the character and personal circumstances of the accused including any previous convictions for dishonesty and the consequences of a custodial sentence to the accused an others.
Richard Freeman (AKA Mr. Technicality) is one of Scotland's most prominent Solicitor Advocates with the skills, decades of experience and technical expertise to vigorously defend your position.
Do not delay, time is vital in order for us to properly examine the evidence against you, contact potential witnesses, ensure timelines are consistent with the evidence and investigate many other aspects in order to create your strongest legal defence.
Call our national helpline 0800 567 7810 now or our local numbers. Alternatively, complete a contact form or request a call back.
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