The justice gap: how fraud victims are being failed
For millions of fraud victims, the hope of securing justice has felt somewhat thin. The BBC’s recent report – “Fraud victims ‘are being failed’ by justice system” reinforced what many already know: the criminal justice system continues to fail fraud victims.
Representatives from the charities Victim Support and the Victim Care and Advice Service are on the front line of supporting fraud victims, and they tell a similar woeful story. When a crime relating to fraud is reported to the bank or police, it isn’t taken seriously, and similarly, if it has an international aspect, then it is deemed too complicated to investigate.
Resource constraints, competing priorities, and strategic considerations often leave these gaps which are being strongly felt by fraud victims. It is within these gaps that private prosecutions play a crucial and often underestimated role.
Why private prosecutions matter in fraud cases
According to the Office for National Statistics’ Crime Survey for England and Wales, there were 4.1 million estimated instances of fraud across the UK in the last year. Yet only around 13,000 cases ever made it to prosecution.
To combat the growth in fraud in the UK, private prosecutions have emerged as a powerful route to justice within the UK’s legal landscape. For law firms, like EMM specialising in this area, private prosecutions reflect a broader shift: individuals, businesses, and charities increasingly seek effective, efficient legal remedies beyond traditional channels. Private prosecutions are a robust tool capable of delivering justice, deterring wrongdoing, and protecting vulnerable groups. In this article, we demonstrate how private prosecution offers hope to victim of charities seeking criminal justice for wrongdoing.
What is a private prosecution?
A private prosecution is a criminal case brought by an individual or organisation rather than the Crown Prosecution Service (CPS) or other statutory authorities. Although privately instigated, the case proceeds through the criminal courts in the same way as any public prosecution. The prosecuting party must ensure that the evidential standard and procedural rules are met – and that the prosecution is fair, balanced, and conducted in the public interest.
The CPS maintains the power to review, take over, or discontinue a private prosecution. This acts as a safeguard while also recognising the legitimacy and importance of the process.
Private prosecutions often progress quickly than public prosecutions and allow the private individual to play a greater role in the prosecution process. Private prosecutors are also entitled to recover their legal costs, but what does this mean for charities?
Why charities are turning to private prosecutions
Charities rely on reputation and public confidence. Where criminal acts, such as theft, fraud, or abuse of charitable resources, go unchallenged, the consequences can impact public trust, reducing potential donations. Private prosecutions can help demonstrate a charity’s commitment to its organisational integrity, helping to protect donor trust.
Private prosecution can offer a route to justice, where public authorities are too overwhelmed to prosecute potential wrongdoers. They enable charities to take the initiative to investigate, detect and deter wrongdoing; the charity protects its ability to serve the public interest by prosecuting those using fraudulent means to intervene with its work. To illustrate this point, we provide a fictional case study demonstrating how private prosecution can be a benefit to charities.
Case study example: a charity using private prosecution to fight fraud
A national charitable organisation identifies irregularities in the activities of one of its regional officers, responsible for fundraising oversight. Internal auditors note discrepancies in donation records and discover that substantial sums have been diverted into the employee’s personal bank account over several years.
Despite presenting evidence to the authorities, the case is not prioritised due to workload pressures and the perceived complexity of the financial investigation. The charity faces reputational risk, donor anxiety, and a potential loss of confidence among beneficiaries and supporters. Working with specialist legal advisors, the charity:
- conducts a detailed forensic accounting review
- gathers evidence from donors, staff, and financial institutions
- prepares a full evidential file meeting the CPS charging standards; and,
- issues proceedings against the suspect for fraud by abuse of position.
The legal expertise and investigative capabilities formed the backbone of a compelling case, which considers complex patterns of misconduct and builds beyond the immediate capacity of public prosecutors.
Outcomes: justice, recovery, and restored confidence
The defendant ultimately pleads guilty before trial, and as a result:
- a conviction is secured, with a custodial sentence imposed
- confiscation orders are awarded, helping to recover a portion of the stolen funds
- the charity’s proactive enforcement strengthens donor confidence; and,
- it recovers a substantial amount of its legal costs from central funds.
A clear route to justice for charities facing fraud
Private prosecutions offer hope to charities. They empower such organisations to shine a light on wrongdoing, hold offenders to account, and ensure that important cases do not fall through gaps in public enforcement. For charities, they offer a targeted, efficient, and principled means of protecting their mission and the communities they serve, helping charities strengthen donor confidence and maintain organisational integrity.
Natalie Tenorio-Bernal & Dylan Silvain
If you would like to discuss how Edmonds Marshall McMahon can assist your charitable organisation, please contact Natalie Tenorio-Bernal, a Senior Investigator, or Ashley Fairbrother, a Partner, at EMM.
