In the review of the past year published on July 1st, Frances explains the role insolvency proceedings can play in helping recover fraud losses wherever they are hidden.
“As we in the anti-fraud community know only too well, the benefits of globalisation are accompanied by a serious down-side,” she writes. “The criminal’s reach has been greatly extended, while detection has been made harder and the opportunities for prevention and redress more limited.”
She adds that Insolvency legislation in the UK and internationally can offer a useful route into recovery and disruption. Causes of action can be taken under the Insolvency Act against fraudsters and their advisers and enablers – and all without necessarily having to make an allegation of fraud.
“Insolvency Act claims and offences are designed to, in effect, undo wrongs and give redress for creditors,” she continues. “It is possible to use them to enforce the sharing among creditors of any pot of assets, even an ill-gotten one. Insolvency legislation really can rewrite the history of a fraud to produce a happier ending.”