Boss jailed for fraudulently moving £51k in funds

The boss of a personal injury claims business has been jailed for 21 months and banned for seven years after fraudulently removing company funds in the months before the courts would make a winding-up order resulting in the closure of the business

Bury-based Darren Bullough appeared at Bolton Crown Court on 14 November after he pleaded guilty to one count of fraudulently removing funds and another count of failing to provide company books and records to the liquidator.

The court heard that Direct Assist Ltd was first incorporated in June 2007 and was a personal injury claims management company with two registered offices in Bury and Bolton.

Bullough was the sole director but seven years later, the company struggled financially after they lost a client who was their main source of business. This resulted in a petition being lodged at court to wind-up Direct Assist in September 2014 in relation to a £658,000 unpaid tax bill.

However, following the petition to wind-up the company, a substantial amount of money was removed from the company’s accounts.

The company bank account was frozen to stop any more funds being removed, as well as preventing creditors losing out further, and after Direct Assist formally entered into compulsory liquidation in March 2015, an investigation was launched by the Insolvency Service.

Enquiries were made difficult as investigators could not find any evidence of company records from July 2013 onwards and this would have covered the period when the funds were taken.

However, investigators were able to discover that in the months before a winding-up order was made by the court Bullough fraudulently removed close to £51,000 between September and December 2014.

Around £28,000 went to family members, £3,600 worth of cash was removed from the company’s bank account and £18,500 was spent on Direct Assist’s credit card. Bullough was found to have made his first removal just one day after the winding-up petition was presented to the courts.

John Fitzsimmons, chief investigator for the Insolvency Service, said: ‘Darren Bullough was well-known as someone who led an extravagant lifestyle, spending money on expensive property and fast cars. But he recklessly removed funds from his business knowing that Direct Assist was in financial difficulty.

‘We welcome the courts substantial sentence and their recognition of the severity of Darren Bullough’s offences as not only was this money not his to do with as he pleased but by removing the funds, he denied payment that was rightfully owed to the company’s creditors.’

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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