Fraud and Small Business

Lucy_Cooke

I am posting this on behalf of a friend whom I suspect has been the victim of misrepresentation; basically fraud.

In the last 18-months he made a series of payments from his owner managed company to an investment firm (essentially a one man band, who initially claimed to be number of people in a company). He claimed to have investors ready to help expand his business. Contracts were signed for investment and none were fulfilled. The investment firm persuaded my friend that he should stop taking on public work and focus on the new ventures the investment would bring.

No investment came and no evidence of any work undertaken by this firm was produced.

The amount paid totalled £50,000 plus £10,000 in other expenses. These were for legal services and contracts, time and valuations.

Additionally, he is on the verge of having his business liquidated (by HMRC) as a result of this and his car repossessed. 12 people have already loss their jobs

On Thursday, I did some digging into the past of the director. I found out that he was sentenced to 5-years in jail for fraud; preying on a mentality ill person convincing him to part with more than £500,000. This is in the court notes and on public record.

He is convinced that he is not the only victim and he is particularly targeting older people operating out of well known establishments.


What should the very next step be?

1) start a process of letter(s) requesting payment
2) go to a solicitor
3) inform the police

Apologises if in the wrong place but I could not post on Citizens Advice.

bris

All three but the moneys gone any way it goes.

00ec25

as above, its a police matter
with such "prior" they may even be willing to do some work....