Kevan Robert Quinn has been disqualified from being a director of a limited company for seven years by Edinburgh Sheriff Court.
Mr Quinn became the director of the long established distribution company Grampian MacLennan?s Distribution Services Limited, on 16 June 2014 and the Company went into Liquidation on 14 October 2014.
In court Mr Quinn offered no defence to the allegations that in this period. Having sold the business premises to a company owned by a business associate and paid off the mortgage he then could not account for over ?76,000 of the sale proceeds. He also transferred some ?78,000 from the company bank account to himself or his other businesses allegedly in respect of business expenses.
Mr Quinn offered various explanations for these ?expenses? but under investigation these proved to be false . During his period of directorship, no payments were made to HMRC in respect of VAT, leaving a liability of ?519,281 outstanding and only one payment of ?12,000 was made in respect of PAYE leaving ?590,101 outstanding .
Alongside this over ?300,000 was owing to trade creditors and over ?275,000 owing in redundancy and holiday pay to staff.
Commenting on the case, Rob Clarke, Group Leader, Insolvent Investigations North, said:
It is clear that Mr Quinn paid little regard to the interests of the company in his period of directorship. Effectively on taking over the management of this long established company he sold off the assets and took whatever funds he could for his own benefit leaving the creditors including staff to face significant losses.
The period of disqualification in this case demonstrates that such behaviour will not be tolerated and the Insolvency Service will act robustly against directors who misconduct themselves in this manner.