Fraudulent Disposition in UK Law

Leading Cases
  • Cattley v Pollard
    • Chancery Division
    • 07 December 2006

    There is another recognised state of circumstances in which a person not nominated a trustee may be bound to liability as if he were a nominated trustee, namely, where he has knowingly assisted a nominated trustee in a fraudulent and dishonest disposition of the trust property.

    Secondly, the rule as to limitations of time which has been laid down in reference to express trusts has also been thought appropriate to cases where a stranger participates in the fraud of a trustee. Thirdly, a similar extension of the doctrine has been acted on in a case where a person received trust property and dealt with it in a manner inconsistent with trusts of which he was cognizant.

    It would appear illogical for a dishonest assistance claim against the accessory to be subject to a six year limitation period if the trustee's breach of trust is not fraudulent but subject to no period of limitation if the trustee's breach were fraudulent: the accessory, to be made liable, has to have been guilty of dishonesty in both cases and there is no readily apparent rationale as to why a different period of limitation should apply.

    Unlike HB in Mara v Browne [1896] 1 Ch 199, Mr Amhurst did not assume the position of a trustee on behalf of others. He never had title to the trust funds or claimed the right to deal with them on behalf of those properly entitled to them. He acted throughout on his own or his confederates' behalf. The claim against him is simply that he participated in a fraud. Equity gives relief against fraud by making any person sufficiently implicated in the fraud accountable in equity.

  • Williams v Central Bank of Nigeria
    • Supreme Court
    • 19 February 2014

    It comprises persons who never assumed and never intended to assume the status of a trustee, whether formally or informally, but have exposed themselves to equitable remedies by virtue of their participation in the unlawful misapplication of trust assets. In either case, they may be required by equity to account as if they were trustees or fiduciaries, although they are not.

  • Singularis Holdings Ltd (in Official Liquidation) (a Company Incorporated in the Cayman Islands) v Daiwa Capital Markets Europe Ltd
    • Court of Appeal (Civil Division)
    • 01 February 2018

    The existence of the fraud was a precondition for Singularis's claim based on breach of Daiwa's Quincecare duty, and it would be a surprising result if Daiwa, having breached that duty, could escape liability by placing reliance on the existence of the fraud that was itself a pre-condition for its liability. The distinction that Mr McCaughran seeks to draw between this case and Barings is, as Mr Miles argued, a distinction without a difference. The judge was right for the reasons she gave.

  • The Federal Republic of Nigeria v JP Morgan Chase Bank, N.A.
    • Queen's Bench Division (Commercial Court)
    • 21 February 2019

    These three cases make clear that the core of the Quincecare duty of care is the negative duty on a bank to refrain from making a payment (despite an instruction on behalf of its customer to do so) where it has reasonable grounds for believing that that payment is part of a scheme to defraud the customer.

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  • Larceny Act 1916
    • UK Non-devolved
    • January 01, 1916
    ... ... ) In an indictment for any offence of embezzlement or ... of fraudulent application or disposition against this ... Act, distinct acts of ... ...
  • Local Registration of Title (Ireland) Act 1891
    • UK Non-devolved
    • January 01, 1891
    ... ... S-33 ... Fraudulent dispositions and entries. 33 Fraudulent dispositions and entries ... registered dispositions for valuable consideration, any disposition ... of land or of a charge on land which if unregistered would be ... ...
  • Bankruptcy Act 1869
    • UK Non-devolved
    • January 01, 1869
    ... ... (2.) That the debtor has, in England or elsewhere, made a ... fraudulent conveyance, gift, delivery, or transfer of ... his property or of any part ... the bankruptcy, in the possession, order, or disposition ... of the bankrupt, being a trader, by the consent and ... permission of ... ...
  • Law of Property Act 1925
    • UK Non-devolved
    • January 01, 1925
    ... ... respecting the payment of capital money ... arising under a disposition upon trust for sale ... are complied with; ... (iii) the conveyance is ... they shall also be protected in like manner ... Fraudulent concealment of documents and falsification of pedigrees. 183 Fraudulent ... ...
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Books & Journal Articles
  • Critiques and further directions for fraud studies. Reconstructing misconceptions about developing fraud theories
    • No. 27-2, April 2020
    • Journal of Financial Crime
    • 323-335
    Purpose: The purpose of this study is to reconstruct the use of disposition variables as determinants of fraudulent behaviours. It is hoped, it stimulates our critical understanding of psychologica...
    ... ... that in theprediction of social behaviours, whether fraudulent behaviours or not, there are no absolute answers to oranalyses of it ... aim of this paper is to reconstruct the use of disposition variables as determinants offraudulent behaviours.A misconception of ... ...
  • When and why (honest) people commit fraudulent behaviours?. Extending the fraud triangle as a predictor of fraudulent behaviours
    • No. 27-2, April 2020
    • Journal of Financial Crime
    • 541-559
    Purpose: This study aims to provide theoretical and empirical insights concerning how macro-level characteristics influence micro-psychological characteristics, in perpetrating fraudulent behaviour...
    ... ... Theoretically and empirically, it is not as simple as itlooks. The causes of the individuals’antisocial or fraudulent disposition are not directlylinked to the commission of such illicit conducts. This process is overlooked by manyprior studies. Theoretical approach have been ... ...
  • The Penetration of Asset Protection Trusts
    • No. 6-2, April 1998
    • Journal of Financial Crime
    • 111-128
    People seek to accumulate, maintain and protect wealth. The trust relation is among the most popular and flexible legal models available in furtherance of these ends, particularly in the offshore w...
    ... ... that have been effected in the Bahamas to the law governing fraudulent convey-ances. This area of law has been extant in the Anglo-Saxon legal ... for over 400 years as a limitation on a settlor's power of disposition of wealth in favour of a trustee. This Act laid down a principal rule — ... ...
  • Asset Protection Trusts and Gibraltar's Legislation
    • No. 2-2, March 1994
    • Journal of Financial Crime
    • 115-120
    ‘Asset Protection’ can be defined as the process of organising one's assets and affairs in advance, so as to best guard them in the future against future financial loss. ‘Asset Protection Trusts’ a...
    ... ... of the bank-ruptcy law, rather than falling within the ambit of fraudulent conveyancing laws, as in the cases of the Cook Islands, Cayman Islands and ... who are individuals and are not insolvent at the date of the disposition and who do not become insolvent in consequence thereof; and (iii) where ... ...
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Law Firm Commentaries
  • What Happens When A Charge Is Discharged In Error?
    • Mondaq UK
    ... ... by Lord Justice Kitchin: "the registration of a voidable disposition such as that with which we are concerned before it is rescinded is not a ... have been different therefore if, for example, it had been a fraudulent discharge as that would have been a void disposition and its registration ... ...
  • What happens when a charge is discharged in error?
    • JD Supra United Kingdom
    NRAM Ltd v. Evans [2017] EWCA Civ 1013 is an interesting case in which a bank discharged a mortgage in error. While the bank was successful in getting its charge reinstated at the Land Registry, it...
    ... ... by Lord Justice Kitchin: "the registration of a voidable disposition such as that with which we are concerned before it is rescinded is not a ... have been different therefore if, for example, it had been a fraudulent discharge as that would have been a void disposition and its registration ... ...
  • Beating Mortgage Fraud
    • Mondaq UK
    ... ... solicitors accounts cannot escape fraudsters trying to take out fraudulent mortgages over your property, and unfortunately, successfully getting away ... registered against your property that states there can be no disposition of your property at all without a certificate signed by a solicitor or ... ...
  • Undue Influence: A Rare Success Story
    • Mondaq UK
    ... ... Undue influence; ... Fraudulent calumny; ... Testamentary Capacity ... The well-established test to be ... [2007] and is as follows: ... In a case of testamentary disposition of assets, unlike a ... lifetime disposition, there is no presumption of ... ...
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