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False accounting charges often arise in professional contexts and can have devastating consequences for your career and reputation, making the prospect of criminal proceedings particularly frightening. If you have been accused of false accounting, you are likely feeling anxious and worried about these charges and what they could mean for your future. This article will explain what false accounting involves, the sentencing options available to courts, and the circumstances under which you might receive a suspended sentence rather than immediate custody.
What is false accounting?
False accounting is an offence under Section 17 of the Theft Act 1968, which makes it a crime to dishonestly destroy, deface, conceal, or falsify any account, record, or document made or required for any accounting purpose, with a view to gain for yourself or another, or with intent to cause loss to another.
The key elements that prosecutors must prove include dishonesty, the destruction, defacement, concealment, or falsification of accounting records or documents, that the records were made or required for accounting purposes, and intent to make a gain or cause a loss. The offence covers a wide range of activities involving the manipulation of financial records and documents.
Common examples of false accounting include altering invoices, receipts, or other financial documents to hide theft or fraud, creating false entries in accounting books or computer systems, destroying or concealing financial records to hide wrongdoing, backdating documents to create false impressions about timing of transactions, manipulating expense claims or timesheets, creating false contracts or agreements to justify payments, and altering bank statements or other financial documents.
The offence can be committed by anyone who handles accounting records, not just qualified accountants, and includes both creating false records and destroying or concealing genuine ones.
What are the usual sentences for false accounting?
False accounting can be tried in either the Magistrates’ Court or the Crown Court, depending on the seriousness of the case and other factors. The maximum sentence is 7 years imprisonment, reflecting the serious view that courts take of offences that undermine the integrity of financial records and accounting systems.
Not every false accounting case results in a prison sentence, though. Various sentencing options are available to the courts, including community orders, suspended sentences, fines, and immediate custody, depending on factors such as the amount of money involved, the sophistication of the falsification, your role and responsibility, the impact on victims, and your personal circumstances.
More serious cases involving substantial amounts, sophisticated manipulation, breach of professional trust, or repeat offending are more likely to result in immediate prison sentences. For less serious cases involving smaller amounts, first-time offenders, or where there are strong mitigating factors, courts often consider community-based sentences such as community service, unpaid work requirements, supervision orders, or fines.
What is a suspended sentence and how does it work?
A suspended sentence is a custodial sentence that is not implemented immediately. Instead, its enforcement is postponed for a designated period, which is typically between six months and two years. During this suspension, an individual remains in the community rather than being imprisoned, assuming they adhere to any stipulations imposed by the court.
If the individual completes the entire suspension period without committing additional offences or violating the conditions, the prison sentence will not be imposed. However, should a new offence be committed or a condition breached during this period, the individual will most likely be required to serve the original suspended sentence in addition to any new penalty.
A suspended sentence serves as both a form of punishment and a second chance. It recognises the gravity of the offence while providing the individual with an opportunity to demonstrate their ability to refrain from further criminal conduct.
Can false accounting result in a suspended sentence?
The short answer is yes, false accounting can lead to a suspended sentence. A suspended sentence is more probable when mitigating factors are present. These factors suggest that a person is less of a risk and that a prison sentence is not necessary for public protection or as a deterrent. Examples of those factors include:
- Clean record. Having no prior criminal convictions, especially for dishonesty offenses, is a significant mitigating factor.
- Genuine remorse. The court looks for sincere remorse and an offender who takes full responsibility for their actions.
- Strong personal ties. Stable employment, family responsibilities, and a positive role in the community can all weigh in favor of a suspended sentence.
- Low risk of reoffending. The court may be persuaded that the person is unlikely to reoffend.
On the other hand, certain aggravating factors can make a suspended sentence less likely, pushing the court towards an immediate prison sentence.
- Prior offences. A history of dishonesty offenses or professional misconduct will be seen as an aggravating factor.
- Sophisticated offence. The more complex and calculated the false accounting, the less likely a suspended sentence becomes. This includes falsification over a long period.
- Significant losses. Cases involving substantial financial losses or gains, or abuse of a position of trust, are often seen as too serious for a suspended sentence.
- Abuse of trust. Using a professional position to commit the crime is a major aggravating factor.
What factors do courts consider when deciding on a suspended sentence for false accounting?
Courts consider multiple factors when deciding whether to impose a suspended sentence for false accounting. The scale and sophistication of the falsification is crucial, including the amount of money involved, the duration of the false accounting, the number of records or documents affected, and the level of planning and concealment involved.
The impact on victims and the broader system is a key consideration. This includes direct financial losses to employers, clients, or other parties, the cost and time required to investigate and rectify the false records, damage to the reputation of businesses or professional practices, and the broader impact on confidence in accounting and financial systems.
Your role and level of responsibility is important, too. Courts will consider whether you were acting alone or as part of a wider scheme, your position within an organisation and level of trust placed in you, whether you initiated the false accounting or were following instructions from others, and your professional qualifications and experience in accounting or finance.
As ever, your personal circumstances play a vital role in sentencing decisions. Factors such as your age, health, employment status, family responsibilities, and previous good character can all influence the court’s decision. Evidence of genuine remorse, cooperation with authorities, and efforts to make restitution will be viewed favourably.
How serious does the offence have to be for a prison sentence for false accounting?
Not every false accounting case results in an immediate prison sentence. Indeed, to impose one, the court must be satisfied that the offence is “so serious that neither a fine alone nor a community sentence can be justified” (per the Sentencing Code).
Examples of less serious cases that might avoid immediate prison include first-time offenders involved in relatively minor falsification, cases where you were acting under significant pressure from others, or where there are exceptional personal circumstances such as serious illness or family crises. Cases involving genuine attempts to rectify the situation or where the falsification was limited in scope and duration may also be treated more leniently.
Cases that typically warrant immediate prison sentences include those involving substantial amounts of money, sophisticated or systematic falsification over extended periods, abuse of professional position or trust, or where you have previous convictions for similar offences.
What can I do to improve my chances of getting a suspended sentence for false accounting?
To improve your prospects of a suspended sentence, you should focus on demonstrating to the court that you are a person who deserves a second chance. This might be proved by:
- Showing genuine remorse and responsibility. You need to show the court that you are truly sorry for your actions. This means accepting full responsibility, being completely honest about your involvement, and acknowledging the harm you caused to victims and your profession. The court will look for sincere regret, not an attempt to minimise what you did.
- Cooperating fully with investigations. Work with the authorities and provide all possible assistance. This could involve helping to correct falsified records, explaining how the fraud was committed, and assisting with calculating and addressing any losses.
- Rectifying and compensating for losses. If you can, take immediate steps to fix the falsified records and pay back any money lost. Even if you cannot fully compensate for all the damage, showing a genuine commitment to making amends can be viewed favourably by the court.
- Addressing professional implications. If your false accounting affects a professional qualification, show the court that you understand the gravity of the situation and are taking appropriate steps to address it with your professional body. This demonstrates that you are taking full responsibility for the consequences of your actions.
Where to get more help
If you are facing false accounting charges, reach out to Stuart Miller Solicitors – the team that has extensive experience in defending clients in financial crime and professional misconduct cases. We understand the serious implications for your career and future, and we are here to provide the expert legal advice and representation you need. Contact us today for a free, confidential consultation to discuss your case.
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