Have a question?
033 3772 0409

Crime Solicitors

Directors of a former Bournemouth-based credit union disqualified (26 April 2017)

Date: 26/04/2017
Duncan Lewis, Crime Solicitors, Directors of a former Bournemouth-based credit union disqualified

An Insolvency Service investigation has resulted in three directors of a former Bournemouth-based credit union being disqualified after the company went into administration owing more than £7 million.

Richard Charles Nichols, 57, from Hampshire, Phillip Raymond Neale, 52, from Bournemouth and Gillian Birkett, 60, from Bournemouth were directors of Enterprise The Business Credit Union Ltd – trading as DotcomUnity Credit Union (EBCU).

The company went into administration on 14 May 2015, with an estimated £7,277,425 in creditor claims.

The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Richard Charles Nichols for a period of nine years, commencing on 24 April 2017.

Nichols had not disputed that he had failed to ensure that the rest of the EBCU Board either agreed – or were even aware of – changes in the contract with a company of which he was also a director.

This caused additional fees of £392,629 to be charged by that company.

Additionally, by failing to include the monies charged and paid out to his other company in EBCU’s accounts, Nichols failed to ensure that EBCU filed accurate accounting information to the Prudential Regulatory Authority (PRA), at a time when EBCU’s capital position was below the required level and it was subject to the PRA’s regulatory enquiries.

The Secretary of State also accepted disqualification undertakings from Phillip Raymond Neale and Gillian Birkett for six years each. Both they and Nichols did not dispute that they had failed to ensure that EBCU obeyed a voluntary imposition of requirements – agreed with the PRA on 24 December 2014 – to cease the normal operation of the credit union until such time that it was able to meet regulatory requirements.

In the following weeks, EBCU further damaged the liquidity of the company, by continuing to issue loans in direct breach of the restriction.

The disqualification prevents all three from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of their disqualification terms without the permission of the Court.

Commenting on the disqualification, Group Leader at The Insolvency Service, David Brooks, said:

“On 19 December 2014, Mr Nichols told the Board of EBCU that the company had ‘broken all rules in the book’ and ‘can’t continue to flout the rules’ – however, both he and Mr Neale and Mrs Birkett then allowed the company to do just that, leading directly to its failure.

“In addition, Mr Nichols allowed a serious conflict of interests to occur regarding a second company, which carried out almost all administrative functions within the credit union.

“He then failed to prioritise his duties to EBCU regarding both the agreement of a fee structure with that company – and the accurate reporting of the inter-company transactions in its accounts.

“This is serious misconduct and the high tariff of disqualification reflects the seriousness of such behaviour – we are grateful for the assistance of the Prudential Regulation Authority, in particular, in this matter.”


Duncan Lewis Business Crime Solicitors

Duncan Lewis business 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.


For all Crime related matter contact us now.Contact Us

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is 143-149 Fenchurch St, London, EC3M 6BL. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.