Crime Solicitors

The director of a Chelmsford-based financial services company has been banned for eight years for failing to ensure that adequate books and records relating to both companies were maintained, preserved or delivered up to the liquidator.

James Lau 47, from Woodford Green in London – also known as James On-Loon Lau – was the director of GG Blue Sky Limited and WFM Management Services Limited.

GG Blue Sky Limited was incorporated on 10 December 2009 and operated in Chelmsford as a derivatives trading room.

WFM Management Services Limited was incorporated on 13 October 1997 and provided financial advice to companies and individuals.

James Lau was appointed as a director of GG Blue Sky Limited (Blue Sky) on 22 February 2010 and was appointed as a director of WFM Management Services Limited (WFM) on 13 October 1997.

Blue Sky and WFM were placed into Liquidation on 17 September 2013, with an estimated deficiency to creditors and shareholders of £7,817,272 in Blue Sky and £26,162 in WFM.

An investigation by the Insolvency Service’s Company Investigation Team resulted in The Secretary of State accepting an undertaking offered by James Lau, disqualifying him from managing, or in any way controlling a company, or being a director until 15 December 2024.

The investigation found that company records were inadequate to explain and account for more than £4 million in income and expenditure from Blue Sky and £500,000 in income and expenditure from WFM over a period of less than two years.

A large proportion of the funds allegedly related to client pension and other investment management, but it has not been possible to explain who these monies belonged to – or where they went – leaving clients out of pocket.

The records were also inadequate in explaining what had happened to properties purchased for more than £600,000 – and payments totalling £41,300 made to an Internet gambling site.

Commenting on the case, Group Leader, Insolvent Investigations North, Rob Clarke, said:

“This failure to maintain, preserve or deliver up records is totally unacceptable, especially where creditors and shareholders are owed substantial amounts – and potential assets were not preserved or disclosed for realisation by the liquidator.

“The Insolvency Service has ensured that such behaviour will not be tolerated and that robust action will be taken against directors where misconduct is found.”

Duncan Lewis Business Crime Solicitors

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