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Fraudulent trading
Then again there is the criminal offence of "fraudulent trading" contrary to s993 Companies Act 2006. This occurs where a person (probably, but not necessarily, a director) is "knowingly party" to the business of a company being carried on "with intent to defraud creditors" or "for any fraudulent purpose".
Fraudulent trading necessarily involves dishonesty.
The maximum penalty for fraudulent trading is 10 years imprisonment.
David
As with most things, the law
Always seek insolvency advice from a reputable IP in your country/state.
As with most things, the law varies in different countries. Some have "ring-fenced" payments made for fraudulent trading so that they are made available to the pool of assets for unsecured creditors.
Wrongful or insolvent trading
An example of wrongful trading would be where a company took lots of deposits from customers knowing full well that they would ve very unlikely to be able to honour the contracts but used the money to pay off creditors. Whilst not necessarily fraudulent it is wrong.
For more definitions look at our page on wrongful trading and trading whilst insolvent
It’s true that the wrongful trading is an unlawful act while if you are trading after getting insolvent, it will be a part of the wrongful trading but not an unlawful act, yet it varies according to the circumstances. The Fraudulent Trading Lawyers in London can best guide in this respect. http://www.stuartmillersolicitors.co.uk/areas-of-law/fraud-law/business-...
If you have been accused of financial crime Ashmans Solicitors can help https://www.ashmanssolicitors.com/legal-services/solicitor-fraud-and-fin...