For the purposes of this Q&A, it is assumed that the relevant shares are shares held in the capital of a private limited company incorporated in England and Wales. Potential criminal consequences Consideration should be had as to whether, through the deliberate sale of shares to which the seller did not have legal title, a criminal offence has been committed. For example, under section 2 of the Fraud Act 2006 (FrA 2006), an offence is committed if the defendant made a false representation dishonestly knowing that the representation was, or might be, untrue or misleading with the intent to make a gain for themselves or another or to cause loss to another or expose them to risk of loss. If a person suspects they may be the victim of a fraud, they can report their suspicions to the police or Action Fraud.