Security systems boss jailed for defrauding creditors

The director of a Warwickshire company that manufactured security systems has been given a two year prison sentence for defrauding his creditors to the tune of £600,000, following an Insolvency Service investigation

Peter Druzyc appeared at Coventry Crown Court after he was found guilty of two counts of fraudulent trading and one count of fraudulently removing property in anticipation of winding up.

He was appointed a director of Secure Systems Limited (SSL), which designed and manufactured electronic security systems, in January 1999 before becoming the sole director in August 2005.

However, between 2009 and 2011 SSL entered into financial difficulties and as a result was placed into administration, before being liquidated in August 2013.

Investigators from the Insolvency Service looked into Druzyc’s conduct and concluded he was fully aware the company was performing poorly and could not meet its liabilities, yet continued to conduct business and avoided paying his creditors on purpose.

He owed between £400,000 and £436,000, as well as more than £45,000 to other creditors. Druzyc also paid out £43,500 across several payments from SSL’s bank account to other accounts he controlled, with the last payment taking place only seven days prior to the company entering into administration in February 2012.

In addition to the sentence, Druzyc previously agreed to an eight year directorship disqualification and at court was ordered to pay costs.

Glenn Wicks, lead investigating officer for the Insolvency Service, said: ‘This man systematically ripped off two companies with no intention of paying either his creditors or his tax liabilities and took every opportunity to dishonestly maximise his income and personal finances prior to SSL’s liquidation.’

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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