Crime Solicitors

The director of a firm which traded in fizzy drinks, car parts and accident data has been banned for nine years, for failing to ensure the company kept adequate accounting records.

Javid Morgra, 32, of Bolton in Lancashire admitted that he had failed to keep sufficient company records and gave an undertaking to the Secretary of State for Business, Energy and Industrial Strategy not to be a director of a limited company for nine years from 7 August 2017.

Mr Mogra was the sole director of Middleborough Ltd, which was wound up by the court in the public interest on 14 November 2016.

The company owed creditors at least £2,119,589, despite filing accounts showing turnover of £2,321,657 for the period ending 31 August 2015.

In giving his undertaking, Mr Mogra did not dispute that he had failed to ensure Middleborough Ltd kept adequate accounting records – and that, as a consequence, it has not been possible to verify his explanation for the shortfall of £54,229 paid to Middleborough by a customer in respect of beverages supplied between 29 June 2015 and 27 August 2015.

The Insolvency Service has also not been able to verify his explanation for an underpayment of £1,435,954 to the supplier, a shortfall of £1,235,302 received from the customer – and an overall loss of £348,390 incurred on sales of car parts between 2 January 2015 and 16 September 2015.

Mr Mogra’s explanation regarding the sale of 6,136 sets of accident data and a debt due to a supplier of at least £624,929 incurred between 1 July 2015 and 16 September 2015 is also unverified, along with other matters such as the accuracy of financial statements at Companies House, the accuracy of VAT returns, the nature and extent of Middleborough’s assets and liabilities – and the legitimacy of the company’s trading, including showing that all transactions were carried out in the usual course of business and to the benefit of the company

Official Receiver of the Insolvency Service’s Public Interest Unit, Ken Beasley, said:

“The Insolvency Service will not tolerate directors who cannot show that their companies are being run for legitimate purposes.

“The director of this company has fallen far short of the standard of record keeping that can be reasonably expected – and, as a result, there were serious concerns over the true nature of this business.”

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.

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

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