Client guide to trade finance disputes: warehouse receipt fraud

Warehouse receipt fraud and the practice of financing the same goods more than once remains a serious and recurring risk in commodity markets. When fraudulent receipts are used to support multiple lending facilities, losses can be substantial and recovery prospects difficult.

This guide outlines what warehouse receipt fraud is and how it arises; highlights the key related legal issues and how disputes commonly arise; and looks at some example cases from the English Courts. It also provides hints and tips on how to spot fraud, how English law can assist victims of fraud and how to reduce exposure to fraud.