Press release: Plymouth property developer disqualified for 8 years

By HM Government

David John Trathen [64] was the director of Rocco Primrose Limited (RPL) which developed housing on an old school site formerly owned by Plymouth City Council.

Formerly known as Trathen Lewis Limited, RPL was first incorporated in August 2013 and traded for around three and a half years before entering into creditors’ voluntary liquidation in April 2017 with an estimated deficiency of £416,353.

Independent insolvency practitioners were appointed to wind up the company but their job was made difficult by the fact that David Trathen failed to deliver adequate accounting records showing the true nature of the company’s business.

Further investigations by the Insolvency Service found that from at least June 2016 to the end of the business in February 2017, David Trathen failed to ensure that RPL maintained adequate accounting records.

This meant it was impossible to account for various payments out of the business, explain the source of credits to RPL’s bank account, what RPL owed to HMRC in taxes, as well as determining the amount of remuneration, if any, received by David Trathen.

In one example, investigators were unable to account for at least £141,000 of RPL’s income, generated from the sale of 20 building plots of land now known as Lilford Gardens – the former site of West Park Primary School in Wanstead Grove.

In another example, investigators could not explain why there had been more than £407,000 worth of expenditure from RPL’s bank account and whether this related to genuine company expenses.

And because of the lack adequate accounting records, investigators could not determine whether David Trathen’s statement of affairs in the liquidation was accurate and the real reason why RPL failed as a business.

As a result, the Secretary of State accepted a disqualification undertaking from David Trathen, and from 1 May 2018, he is banned from running companies, both directly and indirectly, for 8 years.

Dave Elliott, Head of Insolvent Investigations (Midlands & West) for the Insolvency Service said:

Directors have a duty to ensure that companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder.

Without such records, it is not possible to determine whether or not a director has discharged his duties properly, or is using a lack of documentation as a cloak for other wrongdoing.

Notes to editors

Rocco Primrose Ltd (formerly Trathen Lewis Ltd) (CRO No. 8651577) was incorporated on 15 August 2013 and its registered office was at 6 Houndiscombe Road, Plymouth and it traded from 2 Mariners Court, North Quay, Sutton Harbour, Plymouth, PL4 0BS as property developers.

Mr Trathen was a director from 15 August 2013 onwards. The company went into creditors’ voluntary liquidation on 11 April 2017 with an estimated deficiency of £416,353.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7637 6498 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

Email
press.office@insolvency.gsi.gov.uk

Media Manager
020 7596 6187

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

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From:: Press release: Plymouth property developer disqualified for 8 years

Press release: Directorship ban for charity CEO

By HM Government

Jo Harvey-Barringer, currently residing in Sussex, was the Chief Executive Officer and a director of Broken Rainbow LGBT Domestic Violence Service (UK) Limited (Broken Rainbow).

Broken Rainbow was incorporated in January 2004 to provide a telephone helpline service to members of the LGBT community who had experienced domestic violence, initially in London but also from premises in Manchester (from 2015).

The charity had various funding streams but relied heavily on funding provided by the Home Office. Home Office funding was not guaranteed and was often delayed causing cash flow issues.

At the start of 2016, following further delays in Home Office funding and a review of the charity’s financial stability it became apparent that payments had not been maintained to HMRC in respect of the charity’s PAYE debt.

In addition, charity Trustees had serious concerns over how it could continue to deliver its services and sought advice from an Insolvency Practitioner.

Following this, the charity was placed into creditors voluntary liquidation on 5 July 2016.

Between December 2014 and May 2016, payments amounting to £143,671 were made to Jo Harvey- Barringer, at a time when only £3,490 was paid in respect of the PAYE liability incurred during that period. This included a single payment of £12,500 made to her on 08 April 2016.

Anthea Simpson, a Chief Investigator with the Investigation and Enforcement Services, of the Insolvency Service said,

This ban should serve as a warning to other directors, particularly to those operating in the charity sector, that Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes.

Deliberate neglect of tax affairs whilst paying others is not a victimless action as it deprives the taxpayer of the funds needed to operate public services and if they put their own needs before them they could be investigated by the Insolvency Service and lose the privilege of limited liability trading.

On 6 June 2018, the Secretary of State accepted a disqualification undertaking from Jo Harvey-Barringer, after she admitted failing to make payments to HMRC, while continuing to make payments to herself and other creditors.

Her ban is effective from 27 June 2018 and lasts for 3.5 years and means that for the duration of the ban, she cannot directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership.

Notes to editors

Jo Harvey-Barringer, currently resides in Hove, Sussex and her date of birth is July 1968.

Broken Rainbow LGBT Domestic Violence Service (UK) (company registration number: 05009850) was placed into creditors voluntary liquidation on 5 July 2016.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

Email
press.office@insolvency.gsi.gov.uk

Media Manager
020 7596 6187

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Twitter
LinkedIn
[YouTube](https://www.youtube.com/channel/UCcLiLoFYKt6sLLafxk1AplQ

From:: Press release: Directorship ban for charity CEO

SEC accused of ‘discouraging’ executive whistleblowers

By Gavin Hinks

Proposals to reform whistleblowing policy in the US has met with criticism that it will focus rewards on low-ranking employees in smaller businesses, rather than big banks and large corporates.

The post SEC accused of ‘discouraging’ executive whistleblowers appeared first on Board Agenda.

From:: SEC accused of ‘discouraging’ executive whistleblowers

Regulation: Insolvency Service: non-qualifying regulatory provisions summary reporting

By HM Government

Under the Small Business, Enterprise and Employment Act 2015, the Insolvency Service and all other statutory regulators have a duty to report against the Government’s Business Impact Target. The Government’s target is for a saving of £9 billion to business and voluntary or community bodies from qualifying measures that come into force or cease to be in force during this Parliament.

The objectives of the BIT are to:

provide a wider focus for the reduction of regulatory burden on business and voluntary or community bodies (defined as “business”), enabling business to free up resources and boost productivity
ensure that there is even greater transparency around the impact of regulation on business
provide greater incentives for regulators to design and deliver policies that better meet the needs of business
Reporting against the Business Impact Target

The Insolvency Service is required to assess the impact of any regulatory activity or changes to current activity by the Recognised Professional Bodies which qualify as impacting on business. We must publish these assessments annually from 2017. This will enable the Government to know whether it is on course to meet the Business Impact Target.

We must also publish a summary of new and updated Regulatory Provisions which fall under the statutory and administrative exemptions annually: these are known as Non-Qualifying Regulatory Provisions (NQRPs) and do not need to be costed.

From:: Regulation: Insolvency Service: non-qualifying regulatory provisions summary reporting

Press release: Lengthy ban for Glasgow convenience store director

By HM Government

Naeem Javed was a director of Petal (Scotland Ltd (PSL) , from 2004 until the company ceased trading on or around 20 July 2016 and went into liquidation on 29 November 2016.

Once the company entered liquidation, Mr Javed failed to deliver up the company’s accounting records as required by insolvency law. This hampered the investigation and the potential recovery of assets for the benefit of creditors.

An investigation by the Insolvency Service, following the conclusion of the liquidation, found that between 23 December 2015 and 31 December 2015 Mr Javed removed funds totalling £85,000 which had been obtained through false indemnity claims resulting in a loss to the company’s bank.

It was also found that between 13 April 2016 and 31 May 2016 Mr Javed used the company to obtain Marks & Spencer gift cards on credit, at a time when the company had unpaid liabilities of at least £161,077 and insufficient funds to pay for these. This resulted in a loss of £90,000 to the creditor.

On 27 April, Mr Javed gave an undertaking to the Secretary of State for Business, Energy & Industrial Strategy, which, from 18 May 2018, prevents him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership for 11 years.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

The Insolvency Service will rigorously pursue company directors who deliberately defraud their stakeholders for their personal gain. Fair treatment of business partners and creditors is essential for business confidence which is, in turn, essential for economic growth.

The substantial period of the undertaking agreed illustrates that Mr Javed has paid the price for his conduct, and cannot now carry on in business other than at his own risk.

Notes to editors

Petal (Scotland) Ltd (Company No. SC273151) traded as a Spar convenience store from premises at 1357-1359 Barrhead Road, Glasgow.

The company was incorporated in 2004 and was ordered into compulsory liquidation in December 2016.

Mr Javed’s date of birth is February 1972. He was appointed director of PSL on 15 October 2004 and remained in office until the date PSL ceased to trade.

Mr Javed signed an undertaking for 11 years, which was agreed on 27 April 2018. The disqualification commences on 18 May 2018 and is effective until 18 May 2029.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

Email
press.office@insolvency.gsi.gov.uk

Media Manager
020 7596 6187

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Twitter
LinkedIn
YouTube

From:: Press release: Lengthy ban for Glasgow convenience store director

Press release: Husband and wife banned for failing to preserve company records

By HM Government

Mr Mohammed Miah and Mrs Anwara Miah, were both directors of Murrayfield Developments Limited (MDL), which was incorporated in 2004 and traded as The Original Raj Hotel in Edinburgh.

From January 2012, Mr and Mrs Miah were joint directors of MDL and the company ceased trading on 19 November 2015 and went into liquidation on 9 December 2015 owing creditors over £260,000.

An investigation by the Insolvency Service, which followed the liquidation, led to a trial.

The court heard that the Insolvency Service investigation found Mr and Mrs Miah failed to preserve or deliver up the accounting records for MDL to the liquidator, as they were required to by insolvency law. This meant it wasn’t possible to account for over £1 million paid out from the company’s bank account, including cheques written to cash after the commencement of winding up proceedings. This was aggravated by the directors’ failure to provide a statement of affairs to the liquidator.

It was also found that Mr and Mrs Miah caused MDL to trade to the detriment of HMRC whilst insolvent from 1 January 2014 to the date of liquidation resulting in a tax debt of at least £228,920.

In the absence of either Mohammed Miah or Anwara Miah at the court hearing, the Sheriff granted a disqualification order against both Mr and Mrs Miah.

The disqualification commenced on 6 March 2018 and is effective until 6 March 2025.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency.

Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.

Notes to editors

Murrayfield Developments Limited (Company number SC262655), was incorporated in 2004.

Mr Mohammed Miah’s date of birth is March 1959. He was appointed as a director of MDL on 30 January 2012 and remained in office until the date of liquidation. Mrs Anwara Miah’s date of birth is June 1960. She was appointed as a director of MDL on 2 February 2004 and remained in office until the date of liquidation.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

Email
press.office@insolvency.gsi.gov.uk

Media Manager
020 7596 6187

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Twitter

LinkedIn

YouTube

From:: Press release: Husband and wife banned for failing to preserve company records

Press release: Six year ban for failing to keep company records

By HM Government

David Simpson Duffy was the sole director of Annick Structures Ltd (ASL), which traded as a construction and civil engineering company.

ASL was incorporated in 2012 and was ordered into compulsory liquidation in February 2016, following a petition by HMRC.

At liquidation, the company had an estimated deficiency to its creditors of over £900,000.

The investigation by the Insolvency Service, following the conclusion of the liquidation, found that from March 2014 to February 2016, Mr Duffy failed in his duty as a director to preserve or deliver up to the liquidator adequate accounting records for ASL, as he was required to do by law.

The result of which was that it was not possible to verify the true level of income and expenditure to and from the company bank account and specifically:

whether outstanding loans totalling £308,725 were collected for the benefit of the company or remained outstanding at liquidation
whether debtor sums totalling almost £35,000 and stock/Work in Progress sums totalling over £582,000 were collected for the benefit of the company
what the purposes were of transfers totalling £1.8 million and payments totalling £2.5 million related to

This was aggravated further by Mr Duffy’s failure to ensure that ASL prepared and filed annual accounts with Companies House, for the period to 28 February 2015.

Following the Insolvency Service investigation, Mr Duffy signed a six year undertaking, which was accepted on 11 May 2018.

The disqualification commenced on 1 June 2018 and is effective until 1 June 2024 and prevents Mr Duffy from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership for the duration of his ban.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

Directors have a duty to ensure that their companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder in the interests of fairness and transparency.

Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety.

Notes to editors

Mr Duffy’s date of birth is June 1974. He was appointed as sole director of ASL on 13 June 2012 and remained in office until the date of liquidation.

Mr Duffy signed a 6 year Undertaking, which was accepted on 11 May 2018. The disqualification commences on 1 June 2018 and is effective until 1 June 2024.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

act as a director of a company
take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

Press Office

The Insolvency Service

4 Abbey Orchard Street
London
SW1P 2HT

Email
press.office@insolvency.gsi.gov.uk

Media Manager
020 7596 6187

This service is for journalists only. For any other queries, please contact the Insolvency Enquiry line on 0300 678 0015.

For all media enquiries outside normal working hours, please contact the Department for Business, Energy and Industrial Strategy Press Office on 020 7215 1000.

You can also follow the Insolvency Service on:

Twitter
LinkedIn
YouTube

From:: Press release: Six year ban for failing to keep company records