When a company runs into difficulties, those involved in the running of that business are often going through the most stressful and difficult period of their lives. They may have risked everything to make a success of the business, and it may face difficulties through no fault of the directors. To face allegations of criminality over the manner in which the business was run prior to its insolvency can place an individual under enormous stress.
We are ranked as a Top Tier Crime and Fraud Firm by the Legal 500 2025 as well as Chambers Directory 2025. We are a Times Top 200 law firm. We are the current Manchester Legal Awards Crime Team of the Year, an award we have won seven times since 2011 in the space of just over 10 years.
We have a team of over 25 defence lawyers. Eight of our Partners are recommended Legal 500 lawyers, including Matt Corn, Gareth Martin, Toby Wilbraham and Richard Cornthwaite. Our Managing Director, Matthew Claughton is a recent Legal 500 Northern Powerhouse Criminal Lawyer of the Year.
Criminal investigation following insolvency
What may start as a civil matter has the potential to lead to a criminal investigation. The Insolvency Service’s official receiver will become involved at the point of a compulsory liquidation, a bankruptcy order or a debt relief order. The Company Investigations team may investigate where there are concerns about a director’s conduct and that they may be unfit to manage a company.
Criminal Investigations Team
Where it appears that a debtor, a company or officers may have been involved in criminal activity or regulatory breaches the case may be referred to the Criminal Investigations Team or the police, a regulator or other investigatory agency.
How we Olliers help?
Our specialists are used to considering insolvency cases from both a civil and a criminal perspective. Often clients are concerned about the possibility of both. We can advise a client as to the likelihood of a criminal investigation at an early juncture, where possible putting their mind at rest and at all times preserving their position should a criminal investigation arise. We consider our clients position from all angles and adopt a holistic approach to crisis management.
Types of Insolvency Service investigation
Our specialists have experience in defending allegations of:
- Fraudulent trading
- Acting as a director of a limited company whilst disqualified
- Failure to preserve company accounting records
- Re-use of company name following insolvency
- Bankrupt acting as a director of a limited company whilst disqualified
- Failure to disclose property to Official Receiver
We understand how the insolvency of a company can trigger disputes which in turn can lead to allegations of criminality. Complaints may come from insolvency practitioners who will pore over the company’s books and records investigating all transactions. Dissatisfied customers, clients and creditors may register complaints about a company. Alternatively, reports can be made about the activities of a disqualified director or of a bankrupt. The Insolvency Service investigation team now place greater emphasis on information sharing with other regulators. A strategic approach is crucial.
Strategically, it is preferable to avoid a report to the Insolvency Service investigation team. Our strategy is to negotiate and co-operate wherever possible but at all times preserve our client’s position in the event of a criminal prosecution. When a criminal investigation takes place, we are used to dealing with Insolvency Service investigators and can advise clients on how to deal with the investigation as well as attending interviews under caution.
If you are facing the possibility of insolvency and are worried about the possibility of criticism or blame being levelled at you, it is essential to seek expert advice immediately.
