Tuesday 5 August 2014

Is there any doubt that a bit of jail time wouldn’t rapidly and abruptly stop the fraud by corrupt factoring companies?



The Sentencing Council recommends a "benefits fraudster" convicted of taking more than £20,000 should face 18 months to 3 years in prison. And the Crown Prosecution Service (CPS) recommends that if a postman or an ordinary bank clerk pinches £17,500 he goes to jail for 21 months. On the other hand the directors of asset based lenders pinching billions off the tax payer via termniation fee fraud just get a bonus. 

Here's what the CPS says in its "Guideline Breach of Trust Case"
R v CLARK [1998] 2 Cr.App.R. (S.) 95
Save in very exceptional circumstances, where a person in a position of trust, for example an accountant, a solicitor, a bank employee or a postman has used his trusted and privileged position to defraud his partners, clients employers or the general public of sizeable sums of money immediate imprisonment is inevitable unless there are exceptional circumstances or the amount of money involved is very small. The amount defrauded is an important factor and the following guidelines apply where the sums involved are:
  • Less than £17,500   up to 21 months imprisonment
  • £17,500 to £100,000   2-3 years
  • £100,000 to £250,000  3-4 years
  • £250,000 to £1 million  5-9 years
  • £1 million or more   10 years +"

Is there any doubt that a bit of jail time wouldn’t rapidly and abruptly stop the fraud by corrupt factoring companies?

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