Joseph John Jordan, 28, a company director has been disqualified for 14 years after giving an undertaking to the Secretary of State for Business, Energy & Industrial Strategy.
An investigation by the Insolvency Service?s Public Interest Unit found Mr Jordan to have caused Henderson & Forbes Limited to misrepresent itself to investors in the sale of fancy coloured diamonds. These misrepresentations led to investments totaling in excess of ?1.5 million generating gross profits in excess of ?1.3 million.
Henderson & Forbes Ltd went into liquidation on 11 August 2014. The investigation began as a result of a return by the liquidator Darren Edwards of Aspect Plus Limited.
The investigation found that Mr Jordan was the sole director of Henderson & Forbes Ltd, a company which sold diamonds to investors between 23 October 2013 and 11 August 2014.
Investors were informed that the diamonds would increase in value by between 8 and 50% per year. In reality the company marked up the diamonds by between 463% and 1333% meaning the diamonds were worth considerably less than the price investors were paying.
Henderson and Forbes Ltd?s customers have lost in excess of ?1.5million whilst Henderson and Forbes Ltd made a gross profit of at least ?1,360,808.
Mr Jordan has failed to maintain and/or preserve adequate accounting records covering the period of trade, 23 October 2013 to 11 August 2014.
Analysis of the company bank account shows over ?400,000 being paid to a third party. Mr Jordan has provided no explanation for these payments.
Mr Jordan has provided a disqualification undertaking for a period of 14 years commencing on 11 November 2016.
Anthony Hannon, the Official Receiver in the Public Interest Unit, said:
The period of disqualification sends a clear message that misrepresentation to investors will not be tolerated. The fact investors have lost over ?1.5 million makes this an even more serious case.
Directors who do not maintain and preserve their company?s books and records adequately will be investigated by the Insolvency Service.
The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors who act in this way.