British big business fraud


Banks and drug money, cartoon

From daily News Line in Britain:

Friday, 5 April 2013

BIG BUSINESS FRAUD BOOMING! – as workers fight for their rights

WHERE crime ends and business starts and vice versa has always been seen as a blurred grey area which always remains, whatever the scandals that rock the ruling class.

The Fraud Investigation and Dispute Services team at Ernst & Young has released new research revealing that the total fines issued to UK firms and executives for fraudulent activity has exceeded £1 billion in the past five years, with 68% of the fines being applied to the financial services industry (which equates to 55% of the total value).

The study collected data from over 700 cases of fraud reported since 2007 using information provided by three major UK governing bodies.

The data compared the penalties imposed on firms and individuals alongside the reasons behind the fine.

The investigation found that since 2007, UK companies have been fined a total of £976,119,238 whilst individuals have been fined a total of £45,967,462.

The study found that 68% all cases of fraud over the past five years were within the financial services industry, with cases of financial fraud highest in the mortgage industry and specialised finance sector.

Overall, the total fines for the financial services industry exceeded regulatory censure.

John Smart, Partner at Ernst & Young, said: ‘It is worrying to see that the regulators have needed to step in so frequently and issue punishments of this severity to businesses and executives.

‘Just under half of the penalties handed out in the past five years have been monetary fines and the market, for the most part, is not in a condition for businesses to be losing money due to negligence.

‘These results should serve as a stark warning to all businesses in the UK to get their houses in order.

‘Whilst the results vary across different industries, firms should be mindful that these are not isolated situations, and fraudulent actions can occur across all industries and all sizes of business.’

The study’s findings also revealed that individual prison sentences across all regulatory prosecutions ranged from eight months to ten years, with partners and directors receiving the heaviest punishments.

The research reveals that since 1997, the average prison stay of a convicted fraudster – either acting individually or on behalf of a company – is 2,000 days.

John Smart concludes: ‘The extent and variation in the level of fines and prison sentences sends a clear message to UK businesses and their employees that misconduct will not be ignored.

‘Board members will need to take a good look at what they are doing and undertake a full risk and systems review in order to identify any blind spots and identify who the fraudsters are.’

Additional findings from the research include:

• 45% of all fines in the past five years were between £10,000 and £100,000.

• The consumer staples industry, incorporating food, beverages, tobacco and household goods, had the second largest total of fines and the largest average fine at £56,342,307.75, despite making up just 2% of all cases.

Meanwhile the ruling class carries on with its war with the working class all over the planet.

6 thoughts on “British big business fraud

  1. Are you aware of the Glasgow Rangers Football. £150M Tax avoidance racket?
    Google it. I was in DEEP, on Radio and blogging it for a year. The banks and all you said bailed them out and people made MILLIONS of pounds when they died and were re-born as a new team (Same name, stadium etc)
    This is me on the Radio, debating them cheating:

    Everything you say here is spot on…
    Happening all over…
    The bankers need taken out and shot!!

    Like

      • I was joking about Bankers being shot 🙂
        As you know….
        There was a news article in the UK today stating some bankers who were to blame for the marker crash should be banned for life from dealing in money: http://news.sky.com/uk In there with all other UK news today.
        I am opposed to the Death penalty also.
        Did you read the story today, from Saudi Arabia?

        A man who stabbed another man leaving him paralysed from the waste down. The man that stabbed him, is to be operated on and he is to be paralysed from the waste down also, as punishment. I had to read it twice !! http://www.dailyrecord.co.uk/news/uk-world-news/sharia-law-judges-order-man-1811899 “Eye for an eye” Sharia law. How inhuman!!! He stabbed a man so should be locked up. The rule is pay an amount or be operated on, so he can’t move from the waist down either..
        Sick or what.
        Other cultures amaze me, some disturb me
        Shaun..

        Like

        • Yes, there are many examples of cruel punishment in Saudi Arabia.

          Many people think that is because there are extremely strict laws in (Saudi) sharia law. That is not true. There are hardly any written laws. Judges get their jobs from the dictatorial royal family. And then, they can basically make their own rules according to what they personally think what sharia law should be. Sharia law is very complex, and differs a lot in various countries.

          Like

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