Legal News

The Hull Crown Court has sentenced a bankrupt to 14 months imprisonment after he was found to have acted as a shadow director at UPVC Trade Frames (Hull) Ltd.
The conviction of Stephen Joseph Beet followed after an investigation by The Insolvency Service and a full criminal investigation and Prosecution by the Department of Business Innovation and Skills (BIS).
Mr Beet pleaded guilty to the use of prohibited name, acting in the management of a company during a time when he was an un-discharged bankrupt, fraudulent trading and forgery.
Commenting on Mr Beet’s conviction, Deputy Chief Investigation Officer, Mike Williams said Mr Beet’s conviction was a message to all those bankrupts who failed to comply with the restrictions imposed upon them and to expect being brought to justice.
The investigation showed that, Mr Beet set up a new company, UPVC Trade Frames (Hull) Ltd, which supplied and installed double glazing.
The company was incorporated following the failure of two similar ventures, Trade Frames (Hull) Ltd and Trade Frames. Mr Beet was the sole director of Trade Frames (Hull) Ltd which went into liquidation in February 2006. Trade Frames, a sole trading business was set up in February 2006 and also run by Mr Beet.
The name Trade Frames was prohibited because a similar name had been used in the previous liquidated company of which he had been a director. This business was unsuccessful resulting in personal debts and Mr Beet’s bankruptcy.
He took care not to mention himself as the director of the company but he did act as such by arranging overdrafts with the banks, attending meetings at the banks, recruiting salesman, dealing with the bailiffs and inspecting suppliers products.
Bankrupt people are prohibited from being directors of a company without the permission of the court an a bankruptcy lawyer said.
Though knowing very well that they could not meet the obligations the company provided low quotations to secure business from customers leaving the customers with incomplete services or in some cases no work done at all while no money was being paid to the creditors resulting in a loss of £23,000 to customers and a £208,000 debt to its creditors.
Money paid to the company was also diverted to Mr Beet, and in one instance, a customer’s cheque for £350 was altered to show the defendant, not the company as the payee.
Sentencing Mr Recorder McKone told Mr Beet that he was a persistent and dishonest flouting of the law over three years resulting in substantial loss to others which was an offence needing only immediate custody.