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Civil Fraud Case Update: Q3 2025
Mary Young
On 13th February 2024, the Insolvency Service (IS) released their latest monthly enforcement stats in relation to the directors’ disqualifications. The figures, whilst not surprising highlight some interesting points to note:
- The average length of disqualification remains on average around the 8 year mark (s.6(4) CDDA86 provides for a minimum of 2 and max of 15 years);
- The total number of disqualifications remains relatively high at 111 cases in January 2024 - identical to 6 months ago in July 2023. Between July 2023 -January 2024 the stats show expected dips and troughs with the numbers peaking at 123 in November 2023 before falling back down over December and January. It would seem even delinquent directors get a festive break!
- Since December 2021 when The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 (the Act) came into force the IS has had their powers under the CDDA86 extended to cover directors of dissolved companies. I have previously blogged about the Act here when it was being debated in parliament and it is interesting to note, several years on, these additional powers appear to be little used by the IS. There was only 1 disqualification in January 2024 which related to a dissolved company from a previous 2023 high of only 11 cases in September 2023 but, generally, just a handful of cases throughout 2023. Is this because the problem is not as rife as first thought? That the IS’s focus is elsewhere or directors of these companies are too difficult to prosecute? I suspect its more to do with focus and budgetary restraints.
- The number of disqualifications related to Covid-19 financial support abuse (which I also predicted would be a focus some 2 years ago in my blog here) is also on the rise with 84 related cases already in January 2024. In context the highest recorded figure in 2023 relating to Covid-19 abuse disqualifications was 87 (November 2023). It will be very interesting to see if these type of cases continue their upward trajectory into February, March and April 2024 or will peter out. BBLS/CBILS type fraud remains firmly in the IS crosshairs and remains a politically hot topic in the run up to a general election year.
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