Fraudulent Directors on the Increase

Recent government figures have shown that increasing numbers of directors of insolvent companies are being disqualified for fraud and financial crime.

Research released by a leading law firm shows a 72 per cent increase in the year to the end of March in director disqualification at insolvent companies where directors have been implicated in fraud and other financial crime.

It is well documented that a recession brings about an increase in fraud.  As the grip on the economy takes hold, it is expected that more fraudulent activity will be discovered.

Anecdotal evidence has suggested that fraud was a particular problem in the construction industry, which has been hit by plummeting property prices.

Company insolvencies are themselves soaring. Figures released by the Insolvency Service on Friday showed that corporate insolvencies rose to 4,941 in the first quarter of 2009 — up 56 per cent on last year and 7.1 per cent on the previous quarter.

Construction companies were badly hit, with collapses rising by 50 per cent. Manufacturing, which provides a high proportion of total insolvencies, suffered a 23 per cent rise in the last quarter.

With their experience and expertise in both civil and criminal fraud, Frenkels forensic accountants can assist in all types of fraud investigations.


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