When criminals target corporates, either from outside or inside the organisation, law enforcement is often slow to react. Companies and industry groups can use private prosecutions to help themselves.

Even before the global pandemic that spawned outbreaks of fraud around the globe, public law enforcement agencies, were struggling to devote resources to help corporate victims of crime. The UK centralised command centre for collating reports of fraud, ActionFraud, was the subject of an undercover investigation by journalists in 2019, followed by a Home Office review in January 2020 which found that:

• fraud accounts for one in three of all crimes committed;
• 2000 fraud offences are committed every day in England & Wales, but just one in 50 is prosecuted;
• less than 1% of police officers directly investigate fraud.

Private prosecutions can send a powerful message that your company will not tolerate crimes committed against it or its employees. In England and Wales any person, organisation or company is entitled to bring a private prosecution against another party. Businesses can commence criminal proceedings against people who have committed crimes, including fraud, against them, or in relation to criminality of which they are aware, even if they have not suffered the loss. All criminal remedies – including custodial sentences, disqualification orders, financial penalties, confiscation and compensation orders – are available. Whether or not the defendant is convicted, if it was “proper and reasonable” to bring the prosecution, the court will order the payment of the private prosecutor’s reasonable litigation costs, including legal fees. If these can not be recovered from the defendant, they can be recovered from public funds. 

The process – if pursued correctly – can also be more efficient and effective than action taken by public law enforcement. It allows the corporate as prosecutor to draw on experienced, professional and trusted investigators and lawyers to navigate the UK criminal justice system and take successful action to deter criminal activity, bring wrongdoers to justice and protect its brand.

Our team at Addleshaw Goddard has experience in both bringing and defending private prosecutions, as well as liaising with law enforcement in the first instance to push for public assistance. Our private prosecutions team helps clients navigate the whole process from advice and investigation through to criminal and/or civil proceedings and any asset tracing, confiscation and enforcement.

Often when launching or defending a private prosecution there is an intricate mix of criminal, civil and regulatory issues across one or more jurisdictions. Our team works closely with both criminal and civil lawyers, led by the SFO’s former Head of Strategic Intelligence. This unique blend of expertise means we know which avenues are worth investigating and how to get the right results in highly complex cases. Clients value our efficient and effective approach.

Working across all types of corporate and financial misconduct, including fraud, theft and corporate espionage, across all industries as well as the charity sector, we have a broad worldview, and help the client balance the legal, reputational and regulatory risks.