Financial fraud: what does it take to be a fraudster?

Ian Smith, barrister at 11 SB, and Sean Upson, partner at Stewarts Law examine the question of culpability of individuals as fraudsters from a civil law and criminal law perspective.

The Steffelin prosecution in the US  provides a useful insight into a claim for a financial misstatement which, loosely, has been described as fraudulent but not relying on dishonest intention. The article considers the evidential burden in unintentional fraud claims as well as remedies for financial misstatement under ss 90 and 397 of the FSMA. Is 'unintentional fraud' fraud at all or a high-profile label for what is essentially a negligence-based claim?

To read the full article which was first published in Butterworths Journal of International Banking and Financial Law in November 2011, please click here.