Director Disqualified for 11 years by a signed undertaking of the director.
The disqualified director caused or allowed the liquidated company to provide incorrect bank details and false bank statements on 2 separate occasions, to an investment company for the purposes of obtaining funds, which purported to show that the disqualified director held a bank account which was in fact a personal bank account held by him. As a result, the investment company made 2 payments totalling £849,999 to his personal bank account. The investment company would not have made the 2 payments if they had known they were being made to his personal bank account and they are a creditor at liquidation in the amount of £849,999. In that:
- The insolvent company entered into 2 investment deals with an investment company, to obtain funds for the development of a mobile application.
- A condition of the investments was that bank statements must be provided detailing receipt of the investment funds into the company bank account, held by the disqualified director, bank details of which having been previously disclosed to the investor.
- On 12 February 2020 the investment company made a payment of £249,999 to his personal bank account.
- On 10 August 2020, he confirmed the bank account number and sort code of his personal account for the investment funds to be paid into, falsely stating it was an account held by the disqualified director. The same bank details had previously been provided to the investor.
- On 05 August 2020 and 12 August 2020, he provided the investor with copies of bank statements for an account which had the same account number and sort code of his personal bank account. These statements falsely show the bank account was held in the name of the liquidated company.
- Following the confirmation of his personal bank account details, the investment company made a further payment of £600,000 on 10 August 2020 to his personal bank account.
- On or around 03 November 2020, he advised the investor that the disqualified director had changed bank accounts. On 03 November 2020, he provided a copy of a bank statement to the investor which falsely showed the new bank account contained over £900,000.
At liquidation, a company owed a total of £1,211,141 to creditors, including amount owed to the investment company.
Director Disqualified for 13 years by Order of the Court.
Between 9 February 2018 and 25 September 2018, the date of provisional liquidation, the disqualified director caused the liquidated company to misappropriate customer monies and failed to return customer funds totalling £2,202,899.94 in that:
- Customer 1 engaged the liquidated company to exchange US Dollars into Pound Sterling. On 13 February 2018 and 19 February 2018, a total of 2,000,000.00 was transferred to the liquidated company. Of these funds, £1,431,984.42 was paid to Customer 1. £250,000.00 remains outstanding.
- Customer 2 engaged the liquidated company to exchange US Dollars into Euros. 1,479,421.76 was transferred to the liquidated company between 8 May 2018 and 4 July 2018. Of these funds, 117,443.87 was returned by the Liquidated Company. 1,338,270.97 or £1,017,085.94 remains outstanding.
- Customer 3 engaged the liquidated company to exchange Bitcoin into Pound Sterling. Between 9 February 2018 and 2 July 2018, Bitcoin 350, the equivalent of £1,698,377.20 after fees, was transferred to the failed company. Of these funds, £762,563.20 was returned by the liquidated company. £935,814.00 remains outstanding.
- He has failed to account for the outstanding monies or explain why these customers were not paid in full.
Director Disqualified for 8 years by an undertaking agreed by the director.
Between 11 March 2019 and 20 January 2020 the banned director caused the liquidated company to take unauthorised card payments from customers and make unauthorised refunds from company credit card machines to his personal bank accounts. This resulted in liabilities of £73,353 at liquidation.
- On 6 June 2016 The Banned Director signed a loan agreement between the dissolved company and C wherein the liquidated company provided a loan facility to Dissolved Company in the sum of £1,500,000 and thereafter permitted dissolved company to make loans in the sum of £1,246,000 to C.
- During his tenure as director, he permitted dissolved company to make loans in the sum of £1,868,958.39 to N.
- During his tenure as director, he permitted dissolved company to make payments in the sum of £1,166,072.79 to G which were recorded as loans but are now stated by G to have been treated as fees due to the recipient company.
- During his tenure as director, he permitted the dissolved company to make loans in the sum of £177,821.00 to V.
- These loans/payments were made using investor deposits, which was contrary to the marketing material produced for the company which stated that investor deposits would be ring fenced for the acquisition and/or development of the site.
- He permitted dissolved company to pay to B £86,969 more than had been certified as owing to that company.
- On 19 February 2016 he signed a loan agreement allowing the failed company to provide a loan facility of £1,000,000 to C and thereafter allowed Failed Company to make loans in the sum of £970,000.
- During his tenure as director, he permitted failed company to make loans:
- in the sum of £1,782,428.52 to N; and
- in the sum of £95,000 to the failed company.
- During his tenure as director, he permitted the failed company to make payments to N which were recorded as loans but are now stated by G to have been treated as fees due to G in the sum of £785,745.01.
- These loans/payments were made using investor deposits and were made for purposes other than those for which the monies had been released by solicitors for the failed company .
- He made insufficient enquiries into certificates issued by I which falsely certified that build costs totalling £1,751,719.80 had been incurred where in truth only £317,384.54 had been incurred.
Director Disqualified for 3 years by Court Order.
On 17 August 2021 the banned director caused the liquidated company to breach the terms of its invoice finance facility agreement by pre invoicing for work that had not yet been completed, in that:
- On 13 March 2017 the disqualified director signed an invoice finance facility agreement with a bank on behalf of the liquidated company
- Under the terms of the agreement the company could only notify invoices to the bank when goods or services have been delivered and the contract of sale has been performed so that the Debt is undisputed and enforceable.
- On 17 August 2021 an invoice batch totalling £23,760 was notified to the bank for work that had not been completed.
- On the same date the company received £16,400 of funding against that batch of invoices.
The bank is a creditor in the liquidation for £28,015 that it has been unable to recover from the company’s customers, including sums that it had advanced to the company for work that was not completed.
Director Disqualified for 4 years by a director signed undertaking.
The disqualified director allowed company in liquidation to breach the terms of the factoring agreement it had entered into, resulting in the liquidated company receiving the benefit of funds in the amount of at least £218,720 to which it was not entitled:
- The liquidated company operated a factoring agreement with a factoring company.
- The terms of the agreement included that the liquidated company should notify and remit to the factoring company any monies paid to the liquidated company which were properly due to be paid to the factoring company.
- The liquidated company received monies directly from debtors in relation to 53 invoices with the total value of £305,447
- The amount of at least £218,720 was received directly from at least 24 debtors which should have been paid to the factoring company and the liquidated company retained those funds rather than remitting them to the factoring company.
- 18 of the debtors paid at least a further £142,915 in settlements and legal fees to the factoring company relating to the payments which were retained by the liquidated company and not received by the factoring company.
Director Disqualified for 9 years by a signed undertaking of the director.
Between 10 August 2015 and 21 September 2016, the director caused or permitted the liquidated company to use investor deposits totalling £3,220,482, released to the liquidated company by the Company’s solicitors to make loans and/or payments to connected companies and other third parties, for purposes other than those for which the monies had purportedly been released, and contrary to the marketing material of the liquidated company, which stated that investors’ deposits would be ring fenced.
- The director made insufficient enquiries into certificates issued by the insolvent company on behalf of the company which falsely certified that build costs totalling £1,751,719.80 had been incurred where in truth only £317,384.54 had been incurred.
- Between 02 September 2015 and 21 September 2016, the director caused or permitted the insolvent company to use investor deposits totalling £3,514,983, released to the insolvent company by the Company’s solicitors to make loans and/or payments to connected companies and other third parties, for purposes other than those for which the monies had purportedly been released.