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Joshua
Joshua, Lawyer
Category: UK Law
Satisfied Customers: 24527
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have discovered, and have evidence for, my co director and

Resolved Question:

I have discovered, and have evidence for, my co director and an ex-employee have been issuing our faked company invoices to our customers but have been redirecting the payments received into a different company's account. They have put the other companies invoice numbers and bank details on the faked invoices. I have obtained four copies of faked invoices so far. The amounts are not huge but I suspect that many more faked invoices exist. Can I sue the two people involved and the company who is receiving the money. The ex-employee now works for the other company as well. This has been going on for approx. eight months.
Submitted: 1 year ago.
Category: UK Law
Expert:  Joshua replied 1 year ago.

Joshua :

Thanks for your question. Please kindly RATE my answer when you are satisfied

Joshua :

Do you believe the two individuals are collaborating in the fraud please?

Joshua :

Are you a shareholder as well as a director of the company being defrauded?

Customer:

They are collaborating, Yes.

Customer:

I am a shareholder and director

Customer:

my business partner was a director and is still a shareholder

Customer:

he is still a director and shareholder of the other company

Joshua :

Thanks.

Joshua :

Based on what you say this is a straightforward fraud and as such is a criminal matter.

Joshua :

Accordingly you may decide before or after having spoken with them on the matter to approach the police.

Joshua :

Alternatively you may decide to use the threat of police involvement leverage to encourage them to regularise the matter swiftly

Customer:

The other thing is that they know I know but they still keep doing it, they have no fear of the courts or the law.

Joshua :

In any event you have civil redress against either party and can issue proceedings against both of them for recovery of the monies. You will need to confirm that the memorandum and articles allows you do do so as a director in the company's name on your own. If such an action requires the approval of your co-director and you are not a majority shareholder you may need to consider proceeding on the basis of a derivative action as a shareholder of the company on the basis that one of the directors is acting against the interest of the company. If you are a majority shareholder you have a controlling interest in the company and would not need to rely on a derivative action .

Customer:

I want to stop them and make them pay.

Joshua :

The issuing of fake invoices is a clear fraud and may also constitute tax evasion on their part. The police should be willing to take an interest in the matter particularly if the sums involved are significant. They are defrauding the shareholders of the company

Joshua :

may I ask the sum involved so far as you are aware that has been defrauded?

Customer:

so far I have evidence of approx. £1000 but I suspect anything up to £5000

Joshua :

Thanks. We are not talking about large scale fraud but nevertheless the sums involved are not insubstantial and of course there may be further such sums you are not aware of.

Joshua :

You may to consider discussing the matter with them and advise that you take the matter very seriously and require the position to be regularised immediately and your co-directors undertaking to cease and desist from such further actions. You will also wish to decide whether you can continue to work with him if he is deceptive.

Joshua :

You can ask the police to investigate the matter and prosecute if they discover fraud. You may also issue proceedings to recover the funds in the county court whether or not you report the matter to the police as discussed above.

Customer:

Will the police take this seriously ?, the businesses are bot in Mayfair, London

Joshua :

The police have discretion as to what to investigate but they tend to like crimes which have a clear documentary trail because they are relatively easy to prosecute. They have a duty to investigate reports made to them by the public. If you have the evidence you refer to they should investigate the matter

Joshua :

Is there anything above I can clarify for you?

Customer:

Just one thing, if I go to court to sue them and win will they have to pay my costs and can I sue the people and the company.

Joshua :

It is the company being defrauded from what you say so you must sue in the company's name either as a director or as a minority shareholder if you require the co directors approval to sue in the company's name. The other parties will be responsible for the court fees and will be liable to pay interest at 8% per annum on the monies if you are successful.

Customer:

OK, thanks for your help.

Joshua :

A pleasure

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

Joshua, Lawyer
Category: UK Law
Satisfied Customers: 24527
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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LL.B (Hons), Higher Prof. Dip. Law & Practice