Two directors of a scrap metal company have been disqualified for a combined 20 years for, among other things, allowing an undischarged bankrupt and already disqualified director to act as a company director.
Following an investigation by the Insolvency Service, Jody Dean Firth (33) and Albert Leonard Goddard (57) both gave undertakings to the Secretary of State for Business, Innovation and Skills not to be a director of a limited company for 13 and 7 years respectively.
Mr Firth and Mr Goddard were directors of JKL (Wakefield) Limited which went into Voluntary Liquidation on 26 February 2013 owing creditors and shareholders 52,535,011.
JKL (Wakefield) Ltd traded under the style Eric France Metal Recycling and was the main sponsor of rugby Super League team Wakefield Trinity Wildcats and rugby championship club Dewsbury Rams.
The misconduct uncovered by investigators included that they allowed a connected party who was a disqualified director and un-discharged bankrupt to act as a director of JKL.
Commenting on the disqualification, Ken Beasley, Official Receiver of the Insolvency Services Public Interest Unit, said:
These two directors have deprived the taxpaying public of huge amounts of revenue whilst lining their own pockets.
The Insolvency Service will not tolerate dishonest behavior and our investigators will make every effort to expose and deal with such misconduct.
The investigation further found that between 2008 and 2013 JKL (Wakefield) Ltd evaded tax liabilities to HM Revenue & Customs resulting in VAT losses of at least 50,204,505 and losses of 4,888,661 in respect of unpaid PAYE tax and National Insurance whilst Mr Firth and the connected party received 1,250,000 from suppliers which was not accounted for in the companys books and records. Further, the connected party received a bonus payment from JKL (Wakefield) Ltd of 1,102,147 which was also not accounted for in the companys books and records.