Home / News & Events

James Mulholland successfully prosecutes four defendants in a £5 million asset stripping fraud

James Mulholland acted as leading counsel for the Serious Fraud Office in a £5 million asset stripping fraud involving three companies. The defendants eventually pleaded guilty and received prison sentences ranging from a suspended sentence to twenty one months immediate custody at Sheffield Crown Court.

Their behaviour led to the demise of U Shopfitters, W Ltd and A (Tobacconists and Confectioners) Ltd. Having made false promises of investment to each of the vendors, the defendants went on to acquire each company with £4 million of the companies' own funds before using each company account as a personal 'piggy bank' withdrawing a further £800,000. As a consequence, previously solvent companies lost their confidence, solvency and ability to trade successfully. Forty six employees lost their jobs. Creditors lost in excess of £3 million when the companies went into liquidation.

The defendants' sole purpose had been to take as much money in as short a time as possible without any regard to the company's interests. In the case of two of the defendants the money went to fund their affluent lifestyles. This was the second time Mr Mulholland had prosecuted three of these men for similar offences; the first occasion being in 2004 when they also received lengthy prison sentences.

For more information

• Men sentenced for asset stripping - BBC News
• Four sentenced for £4 million asset stripping fraud - Serious Fraud Office News
• Aughton conman in £4m fraud scam - Guardian/ Dinnington Today
• £5m fraud gang cost 46 people their jobs - The Yorkshire Post

10 September 2009

Top of page