Lender who faked millions in accounting records banned

The director of a Leeds finance company has been banned for 11 years after adding more than £12m in false entries to company records over a three-year period, to conceal the true amount of money loaned to clients

Liam Wainwright was a director of Rawdon Asset Finance Ltd (RAF). The company was incorporated in 2009 and provided finance to small and medium businesses unable to secure funding.

However, Wainwright allowed customers to borrow sums in excess of the security they had provided to the lender, a practice which exposed the company to substantial financial risk.

In May 2019, RAF entered into administration. An Insolvency Service investigation found that, in an effort to conceal where he had provided additional funding to clients, Wainwright submitted multiple false entries to RAF’s accounting records from 2016 until the company entered into administration.

As a result, RAF’s financial position had been misrepresented to its funders.

Investigators established that while the company’s loan book claimed it had loans of almost £20m, this figure contained a number of duplicate amounts or debts that had already been written off.

The true amount was an estimated £7.2m and RAF’s lenders were owed at least £18.7m.

Wainwright was disqualified as a director, after he did not dispute making multiple false entries totalling approximately £12,690,522 in the loan book, causing false accounts to be filed, and thereby misrepresenting the company’s position to its backers.

Robert Clarke, chief investigator at the Insolvency Service, said: ‘Liam Wainwright intentionally made multiple false entries worth millions in his company’s loan book.

‘The director was deliberate in his misconduct to conceal RAF’s true financial position from its financiers and exposed them to significant risk of financial harm with claims of more than £18m.

‘Keeping proper records is a pivotal duty for directors and there is no place in the business environment for those who disregard their responsibilities and cover up the activities of their companies.’

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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