Cyber-Ticket Touting as Fraudulent Trading

Abstract

This note examines the case of R v Hunter and argues that the offence of fraudulent trading requires the business itself to be used as an instrument of fraud. It is submitted that this offence is a financial offence found in the Company Act 2006 (with a corresponding offence in the Fraud Act 2006), because an integral aspect of a business is that it generates profits or at least its raison d’être is to generate profit. Many businesses run at a loss, but that is not the raison d’être of a business. If it is accepted that it is the business itself that needs to be the instrument of fraud, then there is no need to consider the elements of the incidental frauds (false representations, deception etc) used by that business to maintain itself as an instrument of fraud. It is also submitted that the decision in R v Hunter is erroneous to the extent it suggests that wilful blindness is sufficient mens rea.