Ilyas Abdulsattar Umerji Nagia, the director of Leicester-based clothing manufacturing company House of Creation Limited, has been disqualified from acting as a director for nine years for hiring illegal workers and leaving a 1 million gap in the accounts.
The disqualification follows an investigation by the Insolvency Service, after an initial raid on the trading premises of the company by the UK Border Agency (UKBA).
Mr Nagia has given an undertaking not to act as a company director until 27 December 2021.
In February 2011, a raid by UKBA officials discovered 16 staff employed at House of Creation did not have permission to work in the UK. The company was fined 80,000 for this but failed to pay. It entered liquidation in May 2011 with debts of more than 240,000, including the fine, which remains unpaid.
A subsequent investigation by the Insolvency Service found inadequate checks at the company had resulted in the hiring of illegal workers, at least ten of whom the company paid less than the national minimum wage.
The investigation also found that over 1 million had been withdrawn in cash from the companys bank account in the final two years of trading but there was no record of where the money had gone.
Mr Nagia, who was the sole director of the company, told investigators that his business had suffered from a combination of the economic downturn and an increase in the national minimum wage.
Commenting on the case, Robert Clarke, Head of Company Investigations Birmingham said:
Directors have a duty to the local community, the jobs market and the wider economy to ensure that their business adheres to the employment regulations.
These rules exist to both protect those who seek employment and to ensure that those who are employed are treated fairly.
The undertaking signed by Ilyas Abdulsattar Umerji Nagia sends a clear message to other company directors that if you run a business which contravenes employment regulations, either wilfully or through negligence, you could be not only risking a sizeable fine from the UK Border Agency but also removal from the business environment for a lengthy period.