Mitchell James Mosley, a director of Red Dog Motorcycles Limited (RDML) has been banned from being a director for 12 years by the County Court at Medway for raising false invoices and causing the companys bank account to be used to convert and transfer criminal property of at least 524,295.
The disqualification, following an investigation by the Insolvency Service, which found Mr Mosley (50) raised the false invoices for the purchase and sale of 11 motorbikes, means he cannot act as a director, control or manage a company until 2026.
Commenting on the disqualification, Andrew Stanley, Official Receiver for Medway Official Receivers office said:
Directors have a range of fiduciary duties to the company that they hold stewardship for and these powers should be used solely for the benefit of the company.
The seriousness of Mr Mosleys conduct warranted a 12 year disqualification and sends a clear message to other company directors that if they abuse the powers bestowed on them they will be investigated by the Insolvency Service and removed from the business environment for a significant period of time.
Mr Mosley stated that RDML, which sold new and used motorcycles, spares and accessories, suffered cash flow problems in 2009 and he sought advice from an Insolvency Practitioner.
RDML entered a Creditors Voluntary Arrangement (CVA) in March 2009 agreeing to pay 12 monthly contributions of 1,5000, increasing these to 2,000 for the following 48 months resulting in creditors receiving 45p in the pound.
Mr Mosley was arrested by Police in June 2011 and charged with 11 counts of money laundering. An investigation showed that Mr Mosley raised false invoices for the purchase and sale of 11 motorbikes which had never come into his or RDMLs possession. The invoices were raised in an attempt to disguise the source and circumstances of the receipts into the companys bank account resulting from transactions he agreed to undertake using compromised debit cards belonging to third parties who were unaware of the transactions.
Mr Mosley stated he then paid 90% of the money to the third party whose instruction he was acting upon and that RDML benefitted from the remainder. In all, Mr Mosley caused RDMLs bank account to convert and transfer criminal property totaling at least 524,295.
As a result of Mr Mosleys arrest, RDML was unable to continue trading and make the payments into the CVA. The Supervisor of the CVA subsequently presented a petition to wind up RDML and a winding up order was made by the County Court at Medway on 25 June 2012.
On 17 September 2013 Mr Mosley was disqualified from acting as a director for a period of 5 years under S2 Company Directors Disqualification Act 1986. Due to the serious nature of Mr Mosleys conduct as a director of RDML, the Official Receiver, acting on the direction of the Secretary of State, sought a lengthier disqualification. The court agreed and District Judge Green made a twelve-year disqualification order against Mr Mosley in the County Court at Medway.