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Case study

The one with the
supplier, their agent and the ponzi scheme…

Advice was provided to a large manufacturing company in relation to it being misled in relation to procurement of postal services.  The client company had high expenditure of postal costs in relation to supply to its customers.  The client organisation was approached by a third party on the introduction of an existing supplier.  This resulting in the client company being misled to enter into finance agreements with numerous finance houses through a scheme which was alleged to provide savings on postal services via purchase of office equipment.  In fact, the alleged savings were being provided from the funds provided by the finance houses in a scheme similar to a Ponzi scheme as contracts were rolled into new contracts anually.

The discovery of the fraudulent scheme by the client led to our advising the client to commence proceedings including the obtaining of a freezing injunction.  The case concerned proving that fraudulent misrepresentations had been made, that certain defendants had conspired to cause loss to the client and that the party using the fraudulent third party as its agent was vicariously liable for the losses caused

The case proceeded to a 14-day trial in which the client succeeded in proving the fraud and obtained judgment against all defendants.

  • Case Study
  • Sector
    Manufacturing and Engineering
  • Service
    Fraudulent Misrepresentation
  • Service
    Freezing Injunctions
  • Service
    Procurement Fraud

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Fax: 0843 216 4240


Tenet Compliance & Litigation Limited
Sterling House, 71 Francis Road, Edgbaston, Birmingham B16 8SP


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Tenet Compliance & Litigation Limited. Registered Office, Sterling House, 71 Francis Road, Edgbaston, Birmingham B16 8SP. Registered in England and Wales. Registered No: 09776405. Authorised and regulated by the Solicitors Regulation Authority. SRA Identification No. 626562.

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