Police Say i have committed Fraud

[scgoose1]

I own a business (Sole Trader ) In Gibraltar (UK Law) It was a partnership until last year when my partner became an employee and gave up his partnership. The business was in debt with the bank for a 13,000 overdraft, and we owed some supliers in Spain around the sum of 70,000 euros. The Spanish suppliers havent contacted us, this debt is now over 3 years old. My problem is i tried to continue running the business but became under alot of stress and i was collecting deposits of clients and using that money to finish other clients works, It got to a stage where i couldnt carry on doing this and 2 of my clients where asking for deposits back which i couldnt return. they contacted the Gibraltar Police who called me and asked me to come and talk to them, I told them i would as soon as i had spoken to a lawyer. I am Brankcrupt and don;t have any assetts at all, My Ex partner of the Buisness owns a house in Spain. The Police have contacted my Bank and the Bank has closed my Buisness and personal account. I therefor had no option to stop trading. I am living in Spain and can no longer go into Gibraltar for fear of being arrested for fraud. I spoke to a lawyer and he was not willing to take on my case because i wanted to declare my self bankcrupt. AND AS I HAVENT GOT ANY MONEY HE WOULDNT PROCEED. I am in a real mess. I have all my tools, 2 vans and a office full of materials which i am going to loose. What should i do.

[loopinlouie]

I just wish you hadnt taken deposits for future work when you were already struggling, this seems to be a common problem with companies bordering on bankrupcy. The main ones who suffer are the normal joe blogs who then have to face up to getting the work done again and pay again if they can!!!! Pray forgive the little moan there I still remember a big company going bust the day after taking four thousand pounds off me, they new what was going to happen and still took my order, but anyway:

 

I think fraud may have been mentioned because you said yourself you were using future deposits to finish off work of previous clients, wether actual fraud I dont know.

 

Were you made bankrupt prior to taking on the works you couldnt finish or after? Because a bankrupt cannot direct a company and that would be against the law.

 

Normally when wound up the company property equipment etc would be sold to pay off debts.

Edited July 27, 2010 by loopinlouie

[loopinlouie]

Also it makes a difference if the company was ltd or not. If not they can come after you, if ltd they cannot.

[scgoose1]

Also it makes a difference if the company was ltd or not. If not they can come after you, if ltd they cannot.

 

 

Thxs for reply. The company is not LTD. I have not as yet been made bankcrupt. But because i have no means of support and no money or assetts i am bankcrupt. My Ex partner has received a court order to appear. And has told me he may face prison, As the police have no fixed address for me i havent recieved anything. I didnt take the deposits knowing i couldnt proceed with the works, but yes was robbing peter to feed paul and trying to keep the business running. know i have no means of working and am unable to pay anyone there deposits back. Should i just hand my self in to the police and seek legal aid? All my bank statements can prove i havent solen a penny. But was suffering financial dificulty. this is very difficult to explain to anyone who has not been in my situation. I need good advice please.

[debtinfo]

In england and wales this would not be a police matter i would think. Im afraid i cannot help as there are different laws accross diferent parts of the UK and i only know the rules for england and wales.

 

I am a big supporter of free help which is why i post but in this case i think you really need some proper proffesional help from someone

[gavmoulds]

DO WHATEVER YOU CAN TO STEER WELL CLEAR OF GIB POLICE.

 

I probably shouldnt say this publicly but I know several people who have had serious problems with them and how they deal with crime...in particular how they deal with citizens whom are not local.

 

I cant really go into detail but please stay away from them. Despite it being 'british' law it has a much wider interpretation and the local legal system definately is not favourable to the accused...

 

I do not hink that you have committed fraud in any way whatsover....but remember you are fighting a seriously uphill battle against another country.

[ptol]

You need solid legal advice from a criminal layer familiar with this area of law.

 

My suspicion from your message is that you were trading whilst insolvent. Did you continue to accept customer orders and buy supplies after you became unable to pay bills at the point when they became due? If so, thats fraud.

[toddle2u]

My suspicion from your message is that you were trading whilst insolvent. Did you continue to accept customer orders and buy supplies after you became unable to pay bills at the point when they became due? If so, thats fraud.

This is a common misconception about insolvency which is not true. It is often though that the definition of trading whilst insolvent is continuing to trade when you cannot meet your debts as and when they become due. The fact is trading whilst insolvent is continuing to trade with no future prospect of being able to meet your liabilities which is incredilbly difficult to prove and does not amount to frraud