Company Director Convicted Following a Private Prosecution for Falsely Declaring Debt Position When Applying for Loan

mycashline offer fair, fast and reliable unsecured business loans from £5,000 – £100,000 to support growing businesses. They find funding solutions for small businesses, and whilst checks are in place, a considerable amount of trust is placed upon the integrity of the applicants.

mycashline approached Edmonds Marshall McMahon (EMM) for advice regarding whether a private prosecution could be brought against Mr A who defrauded the company in 2022.

Ashley Fairbrother, Partner at Edmonds Marshall McMahon (EMM), said: “mycashline took the route of a private prosecution as it would allow them access to justice that was otherwise inaccessible through traditional law enforcement avenues. Budget cuts to the police and CPS in recent times has limited the prioritisation of fraud investigations and prosecutions as reports continue to rise. Frauds on SME’s is often referred to as civil matter or is otherwise overlooked by those charged with prosecuting fraud. Private prosecutions play an important role in the legal system, acting as a strong deterrent message to criminals, whilst achieving justice for their victims.”

In early 2022, Mr A, on behalf of his company, applied for a loan with mycashline; in doing so, he falsely representing the fact that, other than the two pre-existing loans with mycashline, the company had no other outstanding debt. mycashline advanced loans totalling £70,000. However, shortly after advancing the final loan, the company failed to make repayments and entered voluntary liquidation.

It transpired that many of the answers given on the loan application form were false and company creditors totaled more than £450,000. Had the issues been known mycashline would never have provided the loan.

Dovi David, Founder & CEO at mycashline, comments: “We founded mycashline with a clear mission to fix small business finance, to support and tear down barriers for SMEs. We want to help small businesses grow and not to have to fight tooth and nail for the funding that would allow them to bring their business dreams to life. We offer simple, direct lending aimed specifically at this market and the fraud committed could have meant we would have become stricter in our lending, preventing vital funding reaching those that need it.”

Following EMM’s review of the evidence in the case and application to the court, the court granted a summons against Mr A, in relation to offences of Fraud by False representation.

Mr A eventually pleaded guilty to all charges in the Magistrates’ Court. The matter was adjourned for a sentence hearing on 21 December 2022, where, Mr A was sentenced to:

26 weeks’ imprisonment suspended for 18 months.
80 hours’ unpaid work.
A Compensation Order for £15,000, payable on discharge from bankruptcy.
Victim surcharge.

Dovi David, Founder & CEO at mycashline, said: “We’re pleased with the sentence imposed, which we feel is fair. The case was professionally and efficiently handled by expert prosecutors which ultimately resulted in Mr A admitting his wrongdoing and the judge issuing a suspended sentence.

Each year, we help hundreds of growing businesses to thrive and scale. Unlike traditional lenders we always look at the whole story and work with businesses to try and secure them funding. Our funding decisions are made with care, that’s why we were disappointed to find we had been lied to and the application falsified. We hope this acts as a deterrent message and shows that falsified applications are unacceptable.”

Ashley Fairbrother, Partner at Edmonds Marshall McMahon (EMM), adds: “Fraud can take on many forms, that’s why at EMM we do not believe in a ‘one size fits all’ approach. We really care about our clients and that is why we are so proud of the team’s effort here, in this particular fight against fraud. We were able to speedily obtain justice which led to a sentence that was fair and just. This case shows criminal justice working at its best and efficiently so. We hope that the sentence in this case will prevent others from trying to do the same in future, and show this will not be tolerated.”

For more information on private prosecutions and EMM visit: www.emmlegal.com.

Visit: https://www.mycashline.co.uk/