Neil John Bowers, a company director, has been sentenced to eight months imprisonment suspended for 18 months at Cambridge Crown Court, after pleading guilty to failing to preserve proper company records and defrauding creditors.
His co-director Andrew William Villis has also been sentenced to 120 hours unpaid work after he pleaded guilty to failing to preserve company records.
The convictions follow an initial investigation by The Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills (BIS).
Mr Bowers and Mr Villis were both directors of Waste 2 Go (Cambs) Limited, a recycling and scrap company based in Cambridge, that went into liquidation on 13 July 2009 owing 139,561.35 to creditors.
Mr Villis presented some records to the Official Receiver in October 2009 but these were incomplete and, despite numerous requests, nothing else was provided by either director.
The Official Receiver tracked down bank statements for the company and discovered that shortly prior to the liquidation, and at a time when the company was being chased by creditors, 33,514.93 had been paid to Ferry Group Limited, a company of which Mr Bowers was also a director.
Mr Bowers was sentenced to eight months imprisonment suspended for 18 months and ordered to do 120 hours unpaid work.
The court also ordered him to pay compensation of 33,514.93 to the Official Receiver, with 10,000 to be paid immediately and 7,400 in costs.
Mr Villis was sentenced to 120 hours of unpaid work and ordered to pay 7,400 in costs.
Deputy Chief Investigating Officer Ian West from the Department for Business Innovation and Skills said:
Company Directors should take note that it is a criminal offence to fail to keep adequate accounting records. They should be in no doubt that the Department of Business will prosecute those that ignore this warning.