Decision to prosecute

Insolvency Service reports prison sentence for construction boss for fraudulent removal of company funds

The Insolvency Services reports on a Nottinghamshire construction boss who has been sentenced to two years and four months' imprisonment, for fraudulently removing £702,050 from four failing construction companies between 2014 and 2017. Wesley Grainger-Smith (whilst not an official director) exercised significant control over the companies and transferred the funds to his personal casino account, in violation of section 206 of the Insolvency Act 1986. Although approximately £570,000 was reportedly repaid through gambling winnings, the unauthorised use of company funds led to his bankruptcy in March 2017, a five-year directorship disqualification in July 2017, and a further ten-year ban in June 2019.

Judicial review challenging inquest conclusion of unlawful killing (Glaister v HMAC North Wales)

Corporate Crime analysis: This decision of the Administrative Court (Fordham J) analyses: (1) the legal ingredients necessary to sustain a finding of gross negligence manslaughter; and (2) the correct manner of summing-up those matters to a jury, as well as (3) the form of conclusions that are acceptable for a jury to return in an inquest (an investigation process that is statutorily prohibited from determining civil or criminal liability). The judgment is something of a tour de force on the topic that shall be of interest to both inquest practitioners and criminal practitioners, as well as those advising organisations as to health and safety steps and liabilities. Two individuals whose roles were described in the conclusions of an inquest jury finding an unlawful killing (by reason of gross negligence manslaughter) challenged the assistant coroner’s decision to leave manslaughter to the jury as a possible conclusion, the directions that he gave, and conclusion expression. The court dismissed the claim. Written by Philip Rule KC, barrister, No5 Chambers.

FCA secures first criminal sentence for unregistered crypto ATM operations

The Financial Conduct Authority (FCA) has announced that Olumide Osunkoya, who pleaded guilty on 30 September 2024 to a number of charges, was sentenced to four years in prison on 28 February 2025 for illegally operating a network of crypto ATMs in the UK without the required registration from the FCA and associated offences. Osunkoya pleaded guilty to operating crypto ATMs at 28 locations through his company, GidiPlus Ltd, after being refused FCA registration. He continued operations under a false identity, involving forgery and the use of false identity documents. His activities facilitated money laundering. The FCA has initiated confiscation proceedings under the Proceeds of Crime Act 2002 to recover the proceeds from his criminal activities.

Home Office reports on rental fraud and launches enhanced anti-fraud measures

The Home Office has released new National Fraud Intelligence Bureau data revealing that individuals aged 18-39 account for 73% of rental fraud victims, with losses approaching £9m across 5,000 reported cases in the past year. In response, the government is implementing a two-pronged approach launching phase two of the 'Stop! Think Fraud' campaign whilst simultaneously rolling out the National Cyber Security Centre's enhanced two-step verification initiative. The Home Office is also developing an expanded fraud strategy and increasing pressure on technology companies to combat fraud on their platforms, with these matters to be addressed at the upcoming Joint Fraud Taskforce meeting. The data particularly highlights the vulnerability of young renters to fraudulent property listings, with 48% of victims aged 18-29 and 25% aged 30-39, prompting specific guidance against making payments prior to in-person property viewings.