James Patrick Lloyd, a company director, has been sentenced to four months imprisonment suspended for one year at Snaresbrook Crown Court for failing to keep proper company records. Mr Lloyds conviction follows an initial investigation by The Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills (BIS).
Mr Lloyd, who was the sole director of Quality Building Developments Limited, an electrical and heating installation company based in Ilford, Essex, pleaded guilty to failing to preserve books and records, including failure to explain withdrawals of over 1.1m from the company .
Quality Building was wound up on 23 September 2009 on the petition of HM Revenue and Customs (HMRC) leaving trade and tax debts totalling of 269,612. Mr Lloyd provided the Official Receiver, the company liquidator with five boxes of books and records but these failed to include:
Any Construction Industry Scheme records;
Any details of what wages were paid to subcontractors; and
Any records at all to cover the three years between March 2004, when the company was incorporated, and April 2007.
Deputy Chief Investigation 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 and be in no doubt that the Department of Business will prosecute those that ignore this warning.