Fraud Act 2006 (c. 35)

Fraud U.K.

9 Participating in fraudulent business carried on by sole trader etc. E+W+N.I.

(1) A person is guilty of an offence if he is knowingly a party to the carrying on of a business to which this section applies.

(2) This section applies to a business which is carried on—

(a) by a person who is outside the reach of [F1 section 993 of the Companies Act 2006]F1 (offence of fraudulent trading) , and

(b) with intent to defraud creditors of any person or for any other fraudulent purpose.

(3) The following are within the reach of [F2 that section]F2 —

(a) a company (within the meaning of [F3 the Companies Act 1985 or the Companies (Northern Ireland) Order 1986]F3 );

(b) a person to whom that section applies (with or without adaptations or modifications) as if the person were a company;

(c) a person exempted from the application of that section.

(4) F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) “Fraudulent purpose” has the same meaning as in [F5 that section]F5 .

(6) A person guilty of an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding 12 months or to a fine not exceeding the statutory maximum (or to both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 10 years or to a fine (or to both).

(7) Subsection (6)(a) applies in relation to Northern Ireland as if the reference to 12 months were a reference to 6 months.

Textual Amendments

F1 Words in s. 9(2)(a) substituted (1.10.2007 with application as mentioned in Sch. 4 para. 111(6) of the amending S.I.) by virtue of The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 111(2) (with art. 12)

F2 Words in s. 9(3) substituted (1.10.2007 with application as mentioned in Sch. 4 para. 111(6) of the amending S.I.) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 111(3)(a) (with art. 12)

F3 Words in s. 9(3)(a) substituted (1.10.2007 with application as mentioned in Sch. 4 para. 111(6) of the amending S.I.) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 111(3)(b) (with art. 12)

F4 S. 9(4) repealed (1.10.2007 with application as mentioned in Sch. 4 para. 111(6) of the amending S.I.) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1)(3), Sch. 4 para. 111(4), Sch. 5 (with art. 12)

F5 Words in s. 9(5) substituted (1.10.2007 with application as mentioned in Sch. 4 para. 111(6) of the amending S.I.) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), arts. 1(3)(a), 10(1), Sch. 4 para. 111(5) (with art. 12)