A convenience store director has been disqualified 11 years for using fraudulent means to remove funds from the company’s account and to obtain goods on credit.
Naeem Javed was a director of Petal (Scotland Ltd (PSL) – which traded as a Spar convenience store onBarrhead Road – from 2004 until the company ceased trading on or around July 20, 2016 and went into liquidation on November 29, 2016.
Once the company entered liquidation, Mr Javed failed to deliver up the company’s accounting records as required by insolvency law. This hampered the investigation and the potential recovery of assets for the benefit of creditors.
An investigation by the Insolvency Service found that between December 23-31, 2015 Mr Javed removed funds totalling £85,000 which had been obtained through false indemnity claims resulting in a loss to the company’s bank.
It was also found that between April 13, 2016 and May 31, 2016, Mr Javed used the company to obtain Marks & Spencer gift cards on credit, at a time when the company had unpaid liabilities of at least £161,077 and insufficient funds to pay for these. This resulted in a loss of £90,000 to the creditor.
On April 27, Mr Javed gave an undertaking to the Secretary of State for Business, Energy & Industrial Strategy, which, from May 18, 2018, prevents him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership for 11 years.
Robert Clarke, head of company investigation at the Insolvency Service said: “The Insolvency Service will rigorously pursue company directors who deliberately defraud their stakeholders for their personal gain. Fair treatment of business partners and creditors is essential for business confidence which is, in turn, essential for economic growth.
“The substantial period of the undertaking agreed illustrates that Mr Javed has paid the price for his conduct, and cannot now carry on in business other than at his own risk.”