Directors banned over £975k in false invoices
14 Aug 2019
Three directors who secured credit by using their companies to submit false invoices to factoring companies have been banned for a total of 29 years
14 Aug 2019
Deborah Mary Fisher of Lincolnshire was director of NJ Transport Limited, a haulier based in Weston Hills. Over two years between January 2016 and March 2018 she caused NJ Transport to submit false invoices to a factoring company totalling £425,500.
Under typical factoring systems, it is common practice for the company director to personally guarantee all funds advanced.
The factoring company realised the invoices were false when NJ Transport was preparing to enter creditors voluntary liquidation in March 2018.
When the factoring company tried to recoup money from Fisher personally under her guarantor agreement, she declared herself bankrupt in May 2018.
Meantime, Londoners Marcus Grose and Dominic Worley have also been banned over a separate invoice factoring fraud. They were directors of National Electrical Wholesale Limited. Incorporated in 2004, the company sold electrical goods to trade customers.
When National Electrical Wholesale experienced cashflow difficulties in June 2015, Grose and Worley caused the company to submit false invoices to a factoring company to secure credit.
Over the next 18 months, the electrical wholesale company submitted £550,000 worth of invoices from a total of 44 false debtors. The factoring company, however, uncovered the dishonesty when it queried some of National Electrical Wholesale’s invoices.
All three directors have been disqualified and are banned from directly or indirectly becoming involved in the formation, promotion or management of a company without permission of the court.
Fisher signed a nine-year disqualification undertaking, while Grose and Worley have each been banned for 10 years.
David Brooks, group leader of insolvent investigations for the Insolvency Service, said: ‘Factoring companies provide a vital service to companies experiencing cashflow difficulties, alleviating short term financial problems and allowing them to continue trading.
'These directors grossly abused this service. The disqualifications will severely curtail their activities for many years to come.’