Alex Charles Richard Gabb, an appointed director of FCS Resourcing Ltd (FCS) has been disqualified from acting as a director for 7 years for breaching the terms of a factoring agreement through the way in which he manipulated invoices that were part of the agreement.
An investigation by the Insolvency Service found Mr Gabb arranged payment of invoices directly to FCS after having submitted the invoices to the factoring company; submitted invoices to the factoring company that differed from those issued to customers; and submitted invoices to the factoring company that were false.
The disqualification, from 6 January 2016, prevents Mr Gabb from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.
The investigation found FCS Resourcing Ltd entered into the factoring agreement on 14 June 2010, whereby invoices were assigned to the factoring company, which advanced monies to FCS, and payments from customers were collected and controlled by the factoring company.
From 2 September 2013 to 20 January 2014, FCS issued at least 20 invoices to six customers that breached the factoring agreement, causing a loss of over 67,000 to the factoring company. In total, the factoring company claimed 142,569 in the administration.
The factoring company appointed administrators over FCS Resourcing Ltd on 29 January 2014.
Commenting on the disqualification, Robert Clarke, Investigations Group Leader at The Insolvency Service said:
Company Directors should be aware that if their company enters into a factoring agreement, they should abide by the terms of that agreement and not submit invoices to the factor that they know will not be reimbursed.
When The Insolvency Service becomes aware of such acts in companies that are subject to insolvency proceedings, they will be vigorously investigated and the directors subject to significant periods of disqualification.