Minor Cases of Fraud Should Not Be Taken to Court

Minor cases of fraud in big companies should not be taken to court – they are not worth the costs

Taking just any fraud to court might seem highly unproductive to some companies and there are several reasons for that, such as high court expenses, a long processing time and often a complicated legal process. In the end, sentences are often too light offering no real punishment.

If a company wants to take a fraud case to court, it should consider some facts. Financial calculations about losses and benefits should be made in advance and court expenses (such as fees, taxes) have to be taken into account as well. It could turn out that the costs exceed the damage done to the company.

Most of these cases will be processed for a long time and this is usually due to slow administration. Once the case is in process, the fraudster can use the law system to stall the process and by doing that, increase the company expenses. After a period of time, when the conviction is reached, another proceeding will be started solely for the purpose of confiscation of the fraudster’s properties. Even when there’ money available, it’s not a guarantee that the process will end quickly.

Supposedly the most serious sanction when it comes to frauds is court proceedings, but too often the sentences are trivial, and are not of custodial type. Because of this, there are not many prosecutions of this kind.

To conclude, most cases of frauds in big companies should not be taken to court, considering the reasons above. Companies should use administrative penalties, since courts are not suitable for this kind of frauds.