The Insolvency Service has disqualified two directors of a company for a total of 17 years after they submitted falsely inflated invoices to a factoring company.
William and Fiona Lloyd will not be able to manage or in any way control a company, or be a director for 12 years and five years respectively.
The company, White Dot Box Holdings, had a contract with the internet search provider to prom...
William and Fiona Lloyd will not be able to manage or in any way control a company, or be a director for 12 years and five years respectively.
The company, White Dot Box Holdings, had a contract with the internet search provider to prom...
ote their service among their clients. In July 2009 the provider withdrew most of their business, resulting in a reduction in turnover, at which point the company started to experience financial difficulties.
The company also had an agreement with a factoring company who would advance 75% of the monies to the company based on the invoices which were issued to the provider. The factoring company would then collect payments directly from the search provider.
White Dot Box Holdings was placed into liquidation on 11 August 2010 with an estimated deficiency of £665,855.
The investigation showed that between January and May 2010, Mr Lloyd deliberately produced and submitted by email, 17 falsely inflated invoices to the factoring company, all of which were signed by Mrs Lloyd as an authorised signatory.
To facilitate the submission of the falsely inflated invoices Lloyd created fake Slovenian email accounts in the name of the search provider so the factoring company would advance monies based on these invoices. White Dot Box Holdings received £366,900 from the factoring company to which it was not entitled.
Claire Entwistle director of company investigations north said: “Using false documents is contrary to the conduct expected of a company director and The Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from the business environment.”
Although Mr Lloyd was not formerly appointed as a company director, he was sufficiently involved in the management and decision-making to be considered to have acted as a director.
An Insolvency Service spokesperson told AccountingWEB: “While the process of raising money using false invoices is not an uncommon offence in the fraud cases that we see, much more common than this offence is taxation fraud and failure to file proper accounts or paperwork.”
The company also had an agreement with a factoring company who would advance 75% of the monies to the company based on the invoices which were issued to the provider. The factoring company would then collect payments directly from the search provider.
White Dot Box Holdings was placed into liquidation on 11 August 2010 with an estimated deficiency of £665,855.
The investigation showed that between January and May 2010, Mr Lloyd deliberately produced and submitted by email, 17 falsely inflated invoices to the factoring company, all of which were signed by Mrs Lloyd as an authorised signatory.
To facilitate the submission of the falsely inflated invoices Lloyd created fake Slovenian email accounts in the name of the search provider so the factoring company would advance monies based on these invoices. White Dot Box Holdings received £366,900 from the factoring company to which it was not entitled.
Claire Entwistle director of company investigations north said: “Using false documents is contrary to the conduct expected of a company director and The Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from the business environment.”
Although Mr Lloyd was not formerly appointed as a company director, he was sufficiently involved in the management and decision-making to be considered to have acted as a director.
An Insolvency Service spokesperson told AccountingWEB: “While the process of raising money using false invoices is not an uncommon offence in the fraud cases that we see, much more common than this offence is taxation fraud and failure to file proper accounts or paperwork.”
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