Criminal investigations and prosecutions
One of BIS’s key aims is to deliver free and fair markets with greater competition for businesses, consumers and employees. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud.
What we do
We investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. The offences that we prosecute most often are:
- Wrongdoing by a bankrupt both before and after a bankruptcy order has been made (sections 353-360 of the Insolvency Act 1986 and the Fraud Act 2006);
- Malpractice by company officers before and during the winding up / liquidation of a limited liability company (sections 206-211 of the Insolvency Act 1986 and the Fraud Act 2006);
- Offences related to the re-use of a liquidated company’s name by a successor company (‘phoenix companies’) (section 216 of the Insolvency Act 1986);
- Breach of directors disqualification orders, bankruptcy orders and bankruptcy restriction orders (sections 11 and 13 of the Company Directors Disqualification Act 1986);
- Fraudulent trading (section 458 of the Companies Act 1985 and section 993 of the Companies Act 2006);
- Malpractice by company directors in relation to the keeping and preservation of company accounting records (sections 221-222 of the Companies Act 1985 and sections 387 & 389 of the Companies Act 2006).
The majority of the offences that we prosecute are punishable by a maximum penalty of 2-10 years imprisonment and/or a fine.
We will always consider making an application for ancillary orders. For example, after a conviction we will apply for confiscation and compensation wherever appropriate.
Where a person is convicted of certain offences in connection with the setting up or management of a company, the sentencing court may also disqualify that person from being a director or being involved in the management of any other company for up to 15 years (section 2 of the Company Directors Disqualification Act 1986).
Who refers complaints to us?
We receive most of our complaints about suspected criminal offences from:
- The Insolvency Service
- Companies House
- Companies Investigation Branch
We also prosecute for offences referred to us by other parts of the department such as the Employment Agency Standards Inspectorate.
These organisations are all one of the BIS delivery partners.
We do not accept complaints directly from members of the public. If you wish to make a complaint, please refer to our guidance on making a complaint.
Our investigations
Where appropriate, the Criminal Investigations and Prosecutions Team will conduct a criminal investigation into the allegations referred to us. In some cases, we decide not to investigate but to leave the matter to regulatory enforcement. However, if we do start a criminal investigation, it will be conducted by our Investigation Officers.
We will approach anyone who we believe may assist our investigation and request them to provide a written witness statement. In many cases, the investigation will include an invitation to an ‘interview under caution’ for the person(s) suspected of criminality. That person cannot be compelled to attend the interview but this is an opportunity for the person to answer the allegation(s).
Our prosecutions
In each case referred to us, one of our lawyers will decide whether or not to prosecute any individual or company. This decision is made by considering all of the evidence available and applying the Code for Crown Prosecutors (external link). We will prosecute where we believe that there is sufficient evidence for there to be a realistic prospect of conviction and where it is in the public interest to prosecute.
We sometimes decide to prosecute even when there are already civil disqualification proceedings ongoing or a disqualification order has been made. This is because the purpose of the civil and the criminal proceedings are distinct. The criminal prosecution seeks to provide the court with the opportunity to punish the individual for their criminal conduct. The purpose of disqualification proceedings, however, is to protect the public from the abuse of the privilege of limited liability status and therefore to maintain the integrity of the business environment.
Once a prosecution begins, any witness may be required to give evidence. BIS prosecution witnesses are supported by our law clerks team. If you would like information about being a prosecution witness, please see our guidance on Information for Victims and Witnesses.
