Andrew John Lane was the sole director of Football Sport Auctions Ltd (FSA), has been disqualified for ten*years.
Following an investigation by the Insolvency Service, Andrew John Lane gave a disqualification undertaking to the Secretary of State for Business, Energy and Industrial Strategy, preventing him from being involved, directly or indirectly, in the promotion, formation or management of a company for ten years from 26 January 2018.
FSA was incorporated in 2010 and acted as an operator of auctions of sports memorabilia.
A client would enter into an agreement with FSA to sell goods at auction on their behalf. FSA would deduct a commission, before forwarding the sale proceeds to the client.
The company went into liquidation in April 2016, owing over ?214,000 to creditors.
Between 1 April 2015, when the company was already in default to clients for auction sale proceeds, and the date of liquidation, Mr Lane failed to ensure that FSA forwarded the auction sale proceeds of further goods to clients.
In auctions which took place between June 2015 and March 2016, FSA incurred further liabilities totalling at least ?67,536 to at least 39 clients. At liquidation Mr Lane disclosed that FSA owed at least ?104,063 to at least 45 separate clients. Relevant claims submitted by clients to the liquidator indicated that they related to failures by FSA to forward auction sale proceeds or failed to return unsold goods.
Despite escalating liabilities to clients after April 2015, Mr Lane continued to enjoy substantial earnings from FSA and items of personal expenditure paid for by FSA.
Robert Clarke, Group Leader of Insolvent Investigations North at The Insolvency Service, said:
Directors who put their own personal financial interests above those of customers and creditors damage confidence in doing business and are corrosive to the health of the local economy.
This ban should serve as a warning to other directors tempted to help themselves first; you have a duty to your creditors and if you neglect this duty you could be investigated by The Insolvency Service and lose the privilege of limited liability trading.