Keith Sidney Wayment, director of Wayment Flooring Specialists (WFS) Limited, has been banned from being a director for 11 years by Medway County Court for presenting false invoices to its financing company for work that had not been done.
The disqualification, which follows an investigation by the Insolvency Service means that Mr Wayment, 62, cannot act as a director, control or manage a company until 2024.
WFS used the services of a finance company, Invoice Financing Company, to collect payment from its clients by presenting invoices for any work they carried out.
The company got into financial difficulties in 2009 and started raising forward invoices, claiming for work it had not yet completed and was therefore not entitled to claim for.
The company which provided a floor laying service for office refurbishments, new builds and retail outlets, ceased to trade at the end of May 2010 and went into compulsory liquidation on 30 June 2010, with losses of more than 1.3m.
On 19 May 2010, HM Revenue & Customs petitioned to wind up WFS. The company ceased trading at the end of May 2010. On 8 June 2010, and before the company was wound up, the invoice financing company issued a demand letter to WFS for 772,669, which included 582,475 raised through false invoicing and outstanding charges of 190,193.49.
Commenting on the disqualification, Andrew Stanley, Official Receiver for Medway Official Receivers office said:
Directors who utilise an invoice financing company as an involuntary bank and source of cash flow, show total disregard for suppliers and the business community generally.
The disqualification order made in this case sends a clear message to other company directors that if they run a business in a way that is detrimental to either its customers or its creditors, they will be investigated by the Insolvency Service and removed from the business environment for a long time.