Boss of a financing company receives ten year ban after heading false invoice scheme to secure ?4 million of illegitimate funds.
David Andrew Marsden (62), from Exeter, was the director of finance company First Capital Factors Limited (FCF). Incorporated in 2009, FCF offered recourse factoring facilities for small and medium businesses where they would buy a company?s invoices to provide them with advanced finance.
To be able to purchase their clients? invoices, FCF secured funding from other companies. However, one of FCF?s funders spotted irregularities within FCF?s portfolio and sought advice from a business advisory firm in August 2016, who agreed that these concerns within FCF?s loan book.
The funder used its statutory right as a fixed charge holder to appoint an administrator and following further enquiries, it was discovered that David Marsden instructed a number of his clients to produce false invoices, before he submitted them to FCF?s funders to secure illegitimate funds.
FCF operated a back-to-back receivables finance facility, where FCF would assign debts to the funder in exchange for 65% funding. Using this method, David Marsden fraudulently secured close to ?4.3 million before transferring money from FCF to other companies he was connected with in order to avoid paying his creditors.
On 18 September 2018, the Secretary of State accepted a disqualification undertaking from David Marsden, after he admitted acting in collusion with certain clients to defraud a back to back receivables finance provider.
Effective from 9 October 2018, Andrew Marsden is now banned for 10 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
Martin Gitner, Deputy Head of Insolvent Investigations for the Insolvency Service, said:
All the evidence pointed to Andrew Marsden orchestrating the scheme and he clearly controlled all the companies he colluded with to raise millions of pounds worth of false invoices.
His substantial ban will protect other creditors from suffering losses and improve standards in the marketplace. It should also act as a deterrent to others who may be tempted to misuse invoice finance facilities in order to secure illegitimate funds.