Legal News

The directors of a Sheffield-based plastering company have been disqualified for eight years, after being found to have caused their company to factor false invoices totalling £715,000.

Michael O’Toole, 56 of Sheffield and Mark Rice, 39 of Sheffield – directors of Plast-Tec Plastering Systems Limited – both provided an eight-year disqualification undertaking to the Secretary of State in respect of their conduct. Mr O’Toole’s disqualification commenced on 6 July 2017 and Mr Rice’s ban began on 28 June 2017.

Plast-Tec Plastering Systems Limited’s registered office was based at Neepsend. Mr O’Toole was appointed as a director on 1 December 2013 and Mr Rice’s was a director from the company’s incorporation on 18 October 2007.

The matters of unfitness, which Mr O’Toole did not dispute in the Disqualification Undertaking, were that between December 2015 and April 2016, he caused Plast-Tec Plastering Systems Limited (PTPS) to factor false invoices totalling at least £715,000 to Lloyds TSB Commercial Finance.

An Insolvency Service investigation found invoices totalling £760,000 had been factored – of which only one, for £45,000, was found to be a true invoice.

Deputy Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, Martin Gitner, said:

“The directors failed to run their business in accordance with the terms set out in its agreement with the invoice discount facility provider.

“The company obtained money to which it was not entitled by submitting details of sales invoices which did not exist – and this caused the provider to incur financial losses.

“Using false documents is contrary to the conduct expected of a company director – and the Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from operating a business in an environment with the benefit of limited liability.”

A disqualification order has the effect that, without specific permission of a court, a person with a disqualification cannot act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership; or be a receiver of a company’s property

Duncan Lewis Crime Solicitors

Duncan Lewis Crime Solicitors can advise at any stage of a business offence, including at the start of an investigation and before charges are brought.

Our specialist business crime solicitors advise on false accounting, failure to keep adequate records, breach of bankruptcy restrictions, embezzlement, extortion, VAT and tax evasion, misrepresentation, company fraud, financial fraud and white collar crime.

Duncan Lewis Solicitors can liaise with investigating authorities, including HMRC, The Insolvency Service, SFO, FCA, BEIS and City of London Police.

There are Duncan Lewis offices across England and Wales – and a Duncan Lewis criminal defence lawyer can usually reach a police station for interview under caution within an hour. Duncan Lewis is a leading provider of Legal Aid criminal defence services.

Duncan Lewis can also advise on Confiscation Orders under the Proceeds of Crime Act (POCA).

For expert legal advice on all business offences, call Duncan Lewis business crime solicitors on 0333 772 0409.

For 24/7 help at a police station, call the Duncan Lewis Solicitors 24-Hour Emergency Helpline on 0333 772 0607.