A business owner who had been banned from acting as a company director has been jailed after continuing to a run a number of companies.
The Insolvency Service, which published the report, found that the man was directly or indirectly involved in the running of four other businesses after receiving a directorship ban in 2011.
The business owner had personally accepted a disqualification undertaking in connection with the failure of a company which had failed to pay all of its taxes.
However, between November 2011 and May 2014, the regulator found that, in direct contravention of his disqualification, the man continued to run a number of restaurants, among other offences.
The restaurants were operated through two new companies and were using names that had been banned through earlier insolvencies.
The report shows that the business owner had also fraudulently transferred £59,000 to an associate from a company he shouldn’t have been running before it too entered into Creditors Voluntary Liquidation. The connected company also failed to deliver to the liquidator all the files that were needed to help formally shut down the company.
At a hearing on 5 September 2018, the man plead guilty to four counts of running companies while disqualified, two counts of using a prohibited company name, as well as one count of fraudulently removing property in anticipation of the commencement of the winding up of a company, as well as a further count of failing to deliver up books and records to a liquidator.
Commenting on the judgement, Ian West, Deputy Chief Investigation Officer of the Insolvency Service, said: “[The company director] knew exactly what he’d signed up for when he accepted his four-year disqualification but he brazenly ignored its restrictions and continued running restaurants and a property company.
“This was a flagrant abuse of company and insolvency law and thanks to the joint investigation with the Metropolitan Police, [the company director’s] sentence should serve as a warning to others that such abuses will be investigated and disqualifications will be enforced.”