Legal News

Birmingham Crown Court has handed down prison sentences to two directors of a bridal boutique for offences which include diverting company funds to themselves.

Rodney Wallace, 55 – former director of Avalon Personnel Ltd – received a total sentence of 27 months’ imprisonment and his wife, Pauline Wallace, 52 – former director of Curio Bridal Boutique Ltd – received a sentence of ten months’ imprisonment suspended for two years, after pleading guilty on the first day of their trial in October 2016.

Avalon Personnel Limited’s registered office was in Smethwick in the West Midlands. The company was placed into voluntary liquidation on 8 July 2011.

Curio Bridal Boutique Ltd’s registered office was also in Smethwick in the West Midlands – the company was placed into voluntary liquidation on 28 November 2012.

Their case had been adjourned for a Newton Hearing, in order to determine the extent of self-enrichment from the fraud committed by Rodney Wallace.

The convictions follow an investigation and prosecution by the Insolvency Service – an executive agency of the Department for Business Energy & Industrial Strategy (BEIS).

Both defendants accepted that they had made false representations to the High Court, in order to secure a validation order enabling them to access funds in a frozen company bank account.

Thereafter, Rodney Wallace committed fraud in anticipation of the winding up of the same company, by diverting £111,000 to a phoenix company.

He also accepted that he and his family had received at least £42,000 of those diverted funds arising from his dishonest scheme.

His diversion fraud attracted a consecutive sentence. Rodney Wallace had also failed to deliver up the books of the company.

He had already been disqualified from acting as a director on 5 February 2014 for a period of nine years.

The officer in charge of the investigation, Deputy Chief Investigation Officer Glenn Wicks, said:

“This couple made a false representation to the High Court – and also created a phoenix company to continue trading.

“Their actions showed a total disregard to not only the judicial process, but to their creditors.

“The sentence imposed on the two shows that anyone who is prepared to break the law during the liquidation of a company will be dealt with seriously."

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.