Parham Najmabadi of Johnstone, Renfrewshire, the director of internet sales company A2ZShop Co Ltd, has been disqualified from acting as a director for seven years by Paisley Sheriff Court for keeping company funds due to creditors and failure to pay taxes.
The ban, which started on 14 October 2013, following an investigation by the Insolvency Service, means Mr Najmabadi cannot promote, manage or be a director of a limited company until October 2020 without leave of the court.
The court heard that Mr Najmabadi (33) was the sole director of A2ZShop Co Ltd which traded as an internet retailer from August 2008 to 11 August 2011 when it went into liquidation following a winding up petition from HM Revenue and Customs (HMRC).
An Insolvency Service investigation found that, after the petition was served, Mr Najmabadi transferred 73,547 from the company account into one of his personal bank accounts to thwart creditor claims.
Following the companys liquidation, Mr Najmabadi failed to co-operate with the liquidator or to repay the funds he had removed from the company, leaving creditors out of pocket for more than 57,000.
The sum removed by Mr Najmabadi was in excess of the final deficiency to creditors, meaning that had he not taken these funds for himself, all creditors would have been paid in full.
Commenting on Mr Najmabadis disqualification, Robert Clarke, Group Leader, Insolvent Investigations North at the Insolvency Service, said;
Despite knowing that the company was failing, Mr Najmabadi chose to ignore creditor claims and act purely in self-interest, resulting in wholly avoidable losses to others.
Directors who show such a blatant disregard for their fiduciary duties to act in the best interest of their investors can expect to be investigated by the Insolvency Service and removed from the business environment for a lengthy period.