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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Dear Sir/Madam, I was a director (Now Regional Manager of

Resolved Question:

Dear Sir/Madam,
I was a director (Now Regional Manager of a UK recruitment firm). We joined up with a company that helped us recruit teachers and as part of the process we take a £500 deposit from the teachers.
The company we joined with gave out contracts that had incorrect salaries on causing us huge problems when we had to try and negotiate with the teachers to bring them down to the correct salary scale. The company also collected the £500 on our behalf and passed this fee onto us. We provided the teachers with a medical but cannot place many because of the contracts they were issued and the fact the teachers are not prepared to drop the salary. Now they are all demanding full refunds of the £500.
We have made a loss of on all of these teachers and informed the company we partnered with that there was an issue with all these teachers they wrongly contracted. They have said if we do not pay the teachers back the full £500 and pay them they will report me for advance fee fraud.
I have personally done this job for the last 3 years and placed close to 500 teachers in saudi whom were all happy and have infact refunded over 100 teachers alone this year. We have not profited in anyway other than making a substantial loss.
I have 3 young kids and never faced anything like this before. What will happen when they file for fraud? What can i do?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

So I am clear, did you know the teachers would likely have to take a salary drop? If so, were the teachers informed before paying the £500?

Customer: The company were given strict salary structure to follow but they went outside of this and offered teachers random salaries leaving us to clear up the mess. The teachers felt they were signing in good faith.
Alex Watts : Ok. But you didn't know this at the time?
Customer: No not at all. We gave them clear instructions on salary as a recruitment kit. They proceeded offering random salaries and now I have agreed to refund all candidates because of this and have infact refunded over 100 candidates this year. We have made a dreadful loss. There are 56 more candidates to refund but we need 30 days to complete these as I am awaiting an invoiced to be paid by our head office which will allow us to make this payment. I had agreed to pay this Monday under duress from the other company as they said if I did not agree then I would be taken to court for fraud. I absolutely have no idea about this and have 3 little children and after reading online horror stories of fraud cases of homes being raided etc it is quite frightening. I just do not know what will happen
Alex Watts :

Ok - then it can't be fraud. It is only where one party causes a loss to one party and is dishonest to make a gain for himself.

Alex Watts :

Therefore you do not need to worry.

Alex Watts :

If because of external reasons contracts have not been forthcoming that is not your fault.

Alex Watts :

If you have delivered what YOU promised then that is fine

Alex Watts :

Just because a third party messes up their end does not mean you are at fault.

Alex Watts :

Therefore you do not need to worry - it is not fraud.

Alex Watts :

The Act states:

Alex Watts :

(1)A person is in breach of this section if he—


(a)dishonestly makes a false representation, and


(b)intends, by making the representation—


(i)to make a gain for himself or another, or


(ii)to cause loss to another or to expose another to a risk of loss.

Alex Watts :

A representation is false if—


(a)it is untrue or misleading, and


(b)the person making it knows that it is, or might be, untrue or misleading.

Alex Watts :

Can I clarify anything for you about this today please?

Ash and 2 other Law Specialists are ready to help you