Suspended sentence for Cheshire director after he repays £35k
A director of a recruitment company has had to repay £35,000 and carry out 60 hours of community service after the collapse of his firm.
Alan O’Grady, 55, from Widnes, was director of Tailored Recruitment Services Ltd, which supplied staff to the warehouse sector and major UK companies in the North West.
TRS was wound up in 2017 with more than £1m owing to HMRC in unpaid taxes.
The Insolvency Service investigation at that time found that Alan O’Grady had taken more than £40,000 out of the company, despite knowing it was insolvent.
He told investigators he could not remember the transaction, however it was discovered he had used the money to fund a property purchase for his mother-in-law.
O’Grady accepted a disqualification undertaking and was disqualified for nine years in 2019 for his failure to maintain adequate accounts and records as director of TRS, and for withdrawing funds to the detriment of creditors.
The case proceeded to a criminal prosecution, to which O’Grady pleaded guilty and also agreed to repay £35,000.
He was sentenced on October 19, 2021, at Liverpool Crown Court by Miss Recorder Bex QC.
John Ingham, at the Insolvency Service, said: “This sentence will send a message to those who are in a position of trust as company directors, to honour their liabilities to creditors and in particular the public purse, rather than for personal or third-party gain.”