Glasgow-based Alan Coffey, director of Datadesk Computer Services Limited (Datadesk), was disqualified for seven years from 26 December 2013 for failing to keep adequate accounting records, following an investigation by the Insolvency Service.
The disqualification order was made at a hearing at Airdrie Sheriff Court in Scotland, which Mr Coffey (44) did not attend.
Mr Coffeys failure to maintain or preserve adequate accounting records meant it was not possible to verify if 312,266 paid out of the bank account was for the benefit of the company.
This included over 123,141 paid to a company which holds petroleum exploration and extraction rights in Sierra Leone, West Africa and 26,000 paid for the purchase of coffee and related products. In addition, there were unexplained cheque payments totalling 79,038.
Datadesk Computer Services Limited went into liquidation on 3 February 2012.
Datadesks main work was to provide computer hardware and support to corporate clients. However, due to a downturn in the computer business, Mr Coffey diversified and approached a third party, representing himself as an individual with international buying experience and contacts in the coffee industry. Other coffee supply companies were approached and whilst Datadesk was paying for the purchase of this coffee, it was delivered to an associated company under the control of Mr Coffey.
Robert Clarke, Head of Insolvent Investigations North, at the Insolvency Service, said:
Keeping proper records is a pivotal duty for directors and there is no place in the business environment for those who neglect their responsibilities in this area and cover up the activities of the companies they manage.
The lack of records in this case made it impossible to determine whether there was other, more serious, misconduct at Datadesk and that is reflected in the lengthy period of disqualification.
This ban should serve as a reminder to any directors tempted to do the same: the Insolvency Service will vigorously investigate you and seek to remove you from the marketplace.