Director of car dealership banned for 10 years

The director of a car dealership has been banned for 10 years after selling cars worth up to £70,000 and then not passing the money on to the original owners.

Kevin James Warland ran Choice Vehicles in Hinckley for nearly a decade before it went into liquidation owing creditors £570,000 in October 2014.

In its final 11 months, Choice Vehicles recorded sales of £4.9m.

An Insolvency Service investigation found that in 2014 the company sold five motor vehicles belonging to customers under sale or return agreements and failed to pass on the money from the sales – totaling at least £174,450 – to the customers.

The sales included vehicles that were sold for £68,000 and £58,000. Those two sellers were still owed more than £100,000 when Choice Vehicles collapsed.

Warland was given a 10-year disqualification order, banning him from being a company director, at Coventry County Court.

Aldona O’ Hara, investigation leader at the Insolvency Service, said: “Fair treatment of customers and creditors is essential for business confidence which is, in turn, essential for economic growth.

“This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action to seek and remove from them the privilege of trading with limited liability to protect the public for a lengthy period.”