Benjamin Waidhofer was instructed by Gareth Hall and Alex Mincoff of DAC Beachcroft to defend XY who was charged with 3 offences of fraudulent trading and 2 substantive offences of fraud, contrary to section 9 of the Fraud Act 2006, section 993 of the Companies Act 2006 and section 1 of the Fraud Act 2006.  The trial, listed before HHJ Rachel Drake at Reading Crown Court, lasted a little over 11 weeks.

XY was first interviewed in February 2020, although DAC Beachcroft and Benjamin were instructed just a matter of weeks before the trial commenced.  XY had been charged alongside 3 others and was the second named defendant on the indictment.  The case alleged against XY was that he was involved as director and operator of both incorporated and unincorporated entities which offered to source residential accommodation that were sold to investors as properties available for investors to rent as serviced accommodation through platforms such as Airbnb.  

It was alleged that the structures were created not only to conceal the existence of others, but – crucially – that fees were obtained for services that were either impossible to deliver or that could only be obtained through fraud.  

The prosecution relied upon no fewer than 18 specific investors at trial to demonstrate what it alleged as a systemic practice of fraud including false assertions to investors, landlords and property agents, with false documents and misleading adverts placed on social media. 

It was said that the practice resulted in an extravagant ‘jet set’ lifestyle funded by the proceeds of crime, including recourse to expensive cars, private yachts and jets, high-value watches and designer goods. 

During the course of the trial, Benjamin demonstrated the legitimacy of the ‘rent to rent’ business model and the appropriate route to legitimate entry. Benjamin also demonstrated, through careful cross-examination, the misconceived assertions about corporate structures and financial reporting, whilst demonstrating a factual shift between the impression conveyed by the prosecution about investors and the true position in respect of each and every one of them.  

In the course of the trial, it became apparent that the overall proceeds of the enterprise eclipsed  £4 million and, in the course of cross-examination of those called by the prosecution to explain financial transactions, Benjamin demonstrated that the prosecution narrative of what banking material showed wholly failed properly to reflect the evidence placed before the jury.  The preparation of the defence case also involved the deployment of substantial material which had only been obtained through litigated applications for witnesses summonses and consequent disclosure. 

At the conclusion of the trial, the jury found XY not guilty of each and every count alleged against them. 

Benjamin Waidhofer is frequently sought out to advise upon the most high-profile cases of considerable factual and legal complexity which straddle the criminal/civil jurisdiction.  He is ranked as a leading junior in both Chambers & Partners and the Legal 500.  He specialises in representing both private individuals and corporations  facing allegations or investigation for substantial dishonesty or money laundering and he is often sought ought to advise upon, and thereafter conduct, private and state funded prosecutions.  This case was prosecuted by West Berkshire District Council on behalf of Trading Standards and Benjamin has particular expertise in defending allegations prosecuted by Trading Standards under either the Fraud Act 2006 or the Companies Act 2006 as well as specific legislation relating to particular alleged misconduct.  Any queries about this matter or any other ought to be addressed to .