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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have been providing my bank with false information

Resolved Question:

hello, I have been providing my bank with false information to make it appear that I am managing to stay within the bank covenants of my overdraft.
Am I breaking any laws?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.
-Could you explain your situation a little more?
Customer: replied 1 year ago.
Sure, as an employee I have been providing the company's bank with false information. I have been giving them false management accounts for the last 21 months in order that, in the first instance the company could secure a bank loan of £1m, and then continue to stay within the covenants set by the bank on the loan. So the company should have a net worth no less than £1.5m, however, the company is on the verge of insolvency... net worth is now zero. Despite this, the information sent to the bank every month shows a balance sheet net worth of over £1.5m.
Expert:  Ash replied 1 year ago.
Ok. Technically this is fraud, because you are making representations which are false and misleading.
You could be arrested, charged and sent to prison.
Can I clarify anything for you about this today please?
Customer: replied 1 year ago.
Is the above true even though I am providing this information based on the instructions given to me by the finance director of the business? Would it still be me at risk?
Expert:  Ash replied 1 year ago.
Ok - if you didnt know or didnt reasonably expect it to be false then its the FD is at risk of this. If you are just relaying what you have been told then you are ok.
Does that help?
Customer: replied 1 year ago.
I am knowingly producing the false information and he is the one emailing it to the bank with me in cc. He gave me the instruction to produce the false data and he knows that is what he is sending to them.
Expert:  Ash replied 1 year ago.
Ok - you could be jointly liable then, if you knew they were false and didnt do anything about it.
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