Philip Henry Martin, an undischarged bankrupt has been sentenced to 20 months imprisonment at Amersham Crown Court after he pleaded guilty to acting in the management and formation of two companies whilst an undischarged bankrupt and to fraudulently removing 54,000 from one of those companies
Additionally, Mr Martin received a 7 and half year ban from being a director of a limited company.
Mr Martin (42) was initially adjudged bankrupt on 15 December 2010 with estimated liabilities of 2.1 million. Being an undischarged bankrupt he was precluded from acting in the management or formation of a company. Following an initial investigation by the Insolvency Service and a full criminal investigation and Prosecution by The Department for Business Innovation and Skills (BIS) it was shown that between 18 November 2011 and 23 May 2012 Mr Martin acted in the management and formation of Multiguard Solutions UK Ltd and Premiere Building and Construction Ltd whilst an undischarged bankrupt.
A winding up order was made in respect of Multiguard Solutions UK Ltd on 14 May 2012.
The investigation also showed that approximately 108,000 was removed from the company account and paid into another account controlled by Mr Martin. Of the 108.000, 55,000 was used for Mr Martins personal expenditure. This offence was committed both before and after winding up proceedings in relation to Multiguard Solutions UK Ltd had commenced.
In sentencing Mr Martin, His Honour Judge Sheridan QC remarked:
Mr Martins conduct was exactly the type of conduct the legislation was designed to prevent.
The Judge noted that at the time Mr Martin was introduced to Multiguard Solutions UK Ltd, the company was already in financial difficulty, but it did not need Mr Martin to finish it off.
The Judge listed the aggravating features as including the lengths Mr Martin went to in order to hide his identity from the vendors of Multiguard Solutions UK Ltd, the use of a Patsy director Mr Cross whom Mr Martin funded to stay in Thailand out of the reach of the Official Receiver and the fact that Mr Martin pretended to be Mr Cross and encouraged others to lie to the Official Receiver.
Deputy Chief Investigation Officer Glenn Wicks from the Department for Business Innovation and Skills said:
This man was a bankrupt, meaning he should not have been controlling a company. He ripped-off a lot of people and destroyed the company. The courts will clearly consider imprisonment for these very serious offences as he has discovered.