Why is it that such frauds are not so well known or reported ?

 2 immediate reasons spring to mind: Shame and Embarrassment.

 Surely it is better to sweep such matters under the proverbial carpet? No shame to those who have been duped; No embarrassment to those who have scammed.

 In each case in which each of these religions have been plagued, there is one common denominator:

 A man, (usually white, and in his mid to late 30s), down on his luck, approaches a Religious Community. He tells a tale of woe:

“I am a man who has sinned. I am a convicted fraudster. I have lost my home, my job, my family…and now I want to start again. I seek Sanctuary. I seek forgiveness. I seek retribution”.

 He is to be distinguished from the Pardoner, in Chaucer’s Pardoner’s Prologue, and Tale, who preaches ‘Radix Malorum est Cupiditas’, that money is the root of all evil. He scoffs and gloats that he is guilty of the same thing and then has the chutzpah/cheek to offer to help people in exchange for more money. His fellow travellers on their Pilgrimage to Canterbury are not taken in by the Pardoner.

 Our current Religious Leaders were taken in.

Why is this ?

 Apparent honesty in a world of deception is charmingly disarming.

 Let us analyse the facts as we have them:

1. A Man confesses his sins;

2. He has lost everything; His house, his family, his career;

3. He seeks the mercy of a religious house;

4. He seeks divine retribution;

5. He seeks salvation.

He appears sincere. He appears to be telling the truth. A quick google search shows that he has been wanted in connection with a fraud of some kind but the papers are sketchy. Nothing is clear.

Everyone sees a pattern of fraud, but does not see the underlying focus of attack being the religious community itself.

The religious leaders are sceptical…suspicious. How can we trust such a fellow? Does a leopard ever change it’s spots?

Ah, but we are a Religious Order who believes in mercy and forgiveness. Here is a man who confesses all, but what does he want ?

“I want nothing from you, or from anyone. I just want to do good”

 …and so it begins..

He starts by going to religious services. It turns out he has a good voice, and he can sing. He joins the choir and soon he is being embraced by the wider community. He volunteers for everything: He puts out chairs, cleans away, puts out food, and then one day he is asked if he would like to collect money from the wider community. He says, sure.

 This is a test of course. Will he take any money ? Will he skim from what he collects ?

But our fraudster has his eye on bigger goals.

He collects with all sincerity and honesty, to the very penny; Nothing is unaccounted for.

The community find him endearing, he is personable. He is a staunch member of the community.

He gains their trust. One or 2 senior members suggest that he becomes a Freemason, (being a symbol of honour and integrity), and perhaps he should stand for the Board to take a more senior role ?

He declines with apparent modesty, but the Community are aware of his background and he has fought so hard to gain their respect.

Soon he is involved in the Finance Committee advising the Financial Board, and only now his plan unfolds.

He is involved in a number of start-up Companies and has a fantastic array of business plans, but is short of cash.

So people start to lend him £1,000 here and there on the promise of a 20% return within weeks. He remains true to his word, and repays with 20%. Again this is not his ultimate aim.

His aim is to be accepted as trustworthy. His objective, however, is to go for larger amounts.

So the figures keep building up to £5,000, £10,000 with a 20% return some weeks later, and true to form he pays the amounts.

Now he has access to the big financial players within the respective Religious Community, but the picture he wishes to paint is not complete.

No. Firstly he must also be seen to be a generous philanthropist, giving of his time, and lending and giving charitable amounts publicly, or better still in a tailored well-publicised hush.

And now, his deception is complete. He appears to be the epitome of a bad man turned good; Unquestioned and unconditionally a ‘good egg’.

The sums to invest are now considerable, but wait…everyone has a vice: Everyone. There is some funny money to be made on the side, if you want to participate in money laundering, drugs, alcohol, or perhaps gambling, or a share in a brothel…or a prostitute.

‘The path to hell is paved with good intentions’.

He seeks within the community those who are volatile either in unhappy marriages, or perhaps elderly, or lonely. He casts a line, and receives some takes, whilst at the same time he takes considerable sums with which to invest.

Now for the sting: he suddenly cannot repay, but reminds them that they have done wrong, and if he goes down then so do they.

 No one dares prosecute. The shame and embarrassment to themselves, their families and the wider community. Better to cover up such a scandal, but this man travels the world far and wide, preying on the weakness of a community showing a sinner mercy.

No one reports the matter. Better to keep things quiet and sweep them under the carpet…

Has this happened to your Community, whatever your religion? Get in touch, I may be able to assist.

David Rosen is a Solicitor-Advocate, Partner and head of litigation at Darlingtons, London, EC4. He is a working member of the Fraud Advisory Panel, and a Certified Fraud Examiner of the Association of Certified Fraud Examiners.

The overall economic picture, whether in the UK or internationally remains very uncertain, as it has been now for several years. At time like this, Great British spirit is often what separates us from other countries and some good old fashioned “balls” and optimism may be required.

A survey released last week suggest that whilst the road may be rocky, British businesses are adopting a glass half full approach with some 50% of medium-sized businesses planning to hire full-time employees in the next year. Smaller businesses are adopting a more cautious approach, with just over 20% stating that they are intending to increase headcount.

Overall, around 40% of businesses are planning to recruit ion the next year with less than 10% believing they will be reducing staff numbers.

Before sending an e-mail, please think about what you are trying to achieve and decide on the best communication method to use. For example, a telephone call might be more effective.

Keep your message brief and relevant and do not send unnecessary copies of the message.

When writing your e-mails, always assume that they may have to be disclosed to a court or regulator, because in some circumstances that could happen.

Always write your e-mails as if they are permanent, because even when they have been deleted they can often still be retrieved and may be disclosable to a court or regulator.

Your e-mails, even if marked private or confidential, might also be viewed by network supervisors or management when lawful to do so.

Uphold the privacy of others by observing the company’s rules and guidelines.

Avoid asking for sensitive personal data unless necessary for a legal or business purpose, or passing on sensitive personal data about somebody else.

Do not make negative comments about any individual, including customers, employees or suppliers. If you feel that there is an issue which other people need to be aware of, then sending an e-mail is not the appropriate way of doing this. Speak to your manager first about the next steps.

Do not send any e-mail which might be construed as offensive or discriminatory and do not download obscene material.

If you are in doubt about any issue raised above, why not take legal advice or alternatively, specialist IT security and employee investigation services are available also.

Franchising is worth considering when you want to start a business but don’t have a particular business idea in mind. It is also beneficial when you want to piggy back on an established brand using your own business skills to maximise already established potential. It also offers some security of running with an establish business model, although there a number of potential drawbacks also with franchising.

What are the different types of franchise agreements ?

• Distribution agreements – where you sell another person’s product but trade under your own name. In such a case you have more freedom to run the business as you want.
• Agency agreements – where you sell another person’s product or service on their behalf
• Licensee – where the other person provides you with a right to make and sell their product. Here too there are usually few restrictions on how you run your business.
• However, the most popular form of franchising is through what is called a ‘Business Format Franchise”. This is where one person – the Franchisor – grants you a licence to use their business idea in a specific location, becoming the Franchisee.

As a Franchisee you would sell the Franchisors product or service trading under their trade name and in return you would receive their help and support in areas such as training, set up, product development, advertising & advice on running the business. They would also provide you with a complete package which would incorporate all the essentials necessary to start up the business. However, for these “benefits”, which are often compulsory, it is a common feature of a franchise agreement that in addition to paying a premium for buying the franchise there are above market rate charges payable for additional services or goods on an ongoing basis. Additionally, franchise agreements usually involve the franchisee having to pay a percentage of annual turnover.

Although the outlet itself is owned and operated by you, the Franchisor will keep control over the way in which the products or services are sold and marketed. They will also keep a watchful eye over the quality and standard of your business to make sure that it is running in a way that fits with their overall organisation and business ideas.

Before entering into any franchise agreement it is necessary to understand the advantages and disadvantages, as well as to know what you need to look out for before signing on the dotted line.

Advantages of a franchise

• You will be basing your business on a proven idea with a recognised brand name, thereby benefitting from any advertising or promotion by the Franchisor.
• The Franchisor will help you to set up your business and support you in several ways including training and advice.
• You will usually have exclusive rights to trade in a specific location, lowering the number of competitors.
• You will have access to established suppliers and other franchisee’s who can offer you advice and support.

Possible disadvantages

• Additional costs of the initial payment to the Franchisor along with a yearly management fee which will lower your profits.
• Restrictions on how to sell the product or service are usually included in the agreement which can stifle your business plans and ideas. This could include the need to follow their specific systems or procedures.
• Other franchisees may not be suitable and end up giving the franchise a bad reputation, having consequences on your business.
• When the franchise comes to an end or it is terminated, all goodwill that you will have built up in your location will have to be passed back to the Franchisor.

Due diligence before entering into a franchise arrangement

• Check whether the franchise you want to enter into is a proven business concept. How successful is it?
• It is essential that you speak to other franchisees of this particular product or service to see whether they are happy with the way the Franchisor handles them and what the level of support that they receive is.
• Check the location which you have been offered. Is there demand for that product or service? Is there a lot of competition in the area?
• Speak with your accountant – will you have enough profit to run a successful business and still pay the annual management fee or royalties?
• Check any agreement carefully. What kind of restrictions is the Franchisor trying to place on you?
• Will you be accepted as a Franchisee? Do you have a business plan that they will want to add you to their network of outlets?
• When you are sure you want to proceed and have chosen the franchise that you want to join it will then be necessary to enter into their franchising agreement. Long established Franchisors maybe unwilling to be flexible but that does not mean that you should simply agree to all terms without trying to negotiate.

We highly recommend that you seek experienced legal advice before entering into any agreement as it will be necessary to have advice on the practical implications of the terms you are agreeing to. It can be that after entering into such a contract and realising it is not beneficial for you, it can cost more to try and then terminate it.

How can commercial lawyers help with franchise agreements ?

Service levels and expertise will vary but advice can include :-

• Reviewing any agreement and advising on terms such as fees, location, restrictions and exit clauses.
• Negotiating with the Franchisor to amend the terms, making them more beneficial for you.
• Advising on general steps to be taken before, during and after an agreement is made.
• Where applicable, dealing with commercial property aspects of the premises you will be trading from.

• 7% of UK businesses have sufefred fraud
• 14% have provided goods or services without ensuring a contract
• with new customers, 40% of businesses don’t have adequate procedures to ensure a proper contract is in place
• Only 47% undertake credit checks for new customers,
• 73% don’t check whether the delivery address for goods is the registered address for the business
• 67% of companies don’t check for an online presence for the business they are about to do business with
• 20%  did not carry out checks on the basis they were dealing with a big company and that this meant there was no risk

In our view the above figures are shocking. In the current climate, it is hard enough to stay in business due to macro economic conditions. Most businesses should also be aware that when a counterparty defaults, the legal system for recovery is far from quick and far from perfect, and then there’s the risk of a debtor going bust. To succeedi n business it is vital to consider risk, to mitigate that risk in a practical and proportionate way, and there are many tools available to do this, so really there is no excuse.

When firms do lose money after neglecting due diligence or failing to have a contractual agreement in place, there is a reluctance to chase up monies through legal channels.  Just a quarter of firms (25%) that lost monies after failing to be paid appropriately after delivering goods or service threatened legal action.  The vast majority (40%) accepted losing these monies and the passive action taken was to refuse to offer services to the company in the future.

Below are some tips for minimising security risks while using a wireless connection.

1.      Always change the default administrator password of your router and the username; usually we all know that the username and password of the router are on a label at the back of your router. Do not keep the same username and password. Always make sure that you change the username especially of your router and then the password which needs to be in alphanumeric 15 characters password.

2.      Turn on the WPA / WEP Encryption – Most wi-fi devices support encryption. Basically encryption is a form of scrambling messages being transferred over wireless networks so that they are not easily traceable or read by someone when the data is being transferred.

3.      Change the default SSID, which are basically the access points which the router uses for a network name called the SSID. The Original Equipment Manufacturers normally ship their products with the same SSID set. So for instance for Juniper, the SSID for Juniper devices is normally “juniper”. If someone knows your SSID it doesn’t mean that someone will be able to break into your network, but it’s basically the first door to break in as if someone knows your SSID and it is not configured properly on the network there are chances for hackers to attack it. So it’s always better to change the SSID instantly when you are configuring wireless security on your network.

4.      Last and the most important point is enabling firewalls, Most of the routers now have built in firewalls but they do have an option to disable it as well. You need to make sure that that this setting is always set on enabled.

The study, conducted between June and July 2010, interviewed eight executive risk and compliance officers in seven industries from five continents around the world.

Perhaps one of the key issues in risk management is changing form  a culture of managing a risk which has manifested into a problem as opposed to risk prevention or mitigation. In other words, moving from a passive to a proactive policy and culture. This of course takes time, particularly in large or multinational companies.

The full survey, well worth a read can be found here.

Some of the most obvious sources of risk management are from legal advice, specialists in areas such as Health & Safety and insurance advice, but there are many other types of providers such as commercial investigators who also provide risk managment services.