Simon Wakefield, the sole appointed director of Wakefield Trading Ltd has been disqualified from acting as a director for eight years for allowing a known criminal to perpetuate a fraud on a financial institution and for failing to maintain or deliver up the companys accounting records
The disqualification, from 7 December 2015, prevents Mr Wakefield from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.
An Insolvency Service investigation found Mr Wakefield signed up to a factoring agreement and allowed sales invoices totaling over 400,000 to be assigned to the factoring company, who advanced over 240,000 to Wakefield Trading Ltd.
When the factoring company attempted to collect the monies due, it was unable to collect the vast majority of the cash as most of the customers were unable to be located.
Money paid into the companys bank account by the factoring company was either withdrawn in cash or paid to unknown recipients directly, for which Mr Wakefield was unable to provide a satisfactory explanation.
No records for Wakefield Trading Ltd have been delivered up by Mr Wakefield to the Liquidator, as he is required to do, contending that these are in the possession of a third party.
Commenting on the disqualification, Robert Clarke, Investigations Group Leader at the Insolvency Service said:
Company Directors should note that if they allow their company to be used by a third party for potentially criminal activities the Insolvency Service will vigorously investigate such cases and they will be subject to a long period of disqualification.
Furthermore, directors should be aware of their requirement to maintain proper accounting records and, in the event of insolvency, to deliver these up to the Liquidator.
In this particular case, Mr Wakefield allowed himself to be manipulated by another and must now suffer the consequences of his own inaction