Bosses of restaurants where footballers splashed cash banned
BOSSES of a lounge bar and restaurant where footballers allegedly spent thousands of pounds a night – but which went out of business with debts of nearly £700,000 – have been disqualified for tax evasion and employing illegal workers.
Rice Flame Bar & Grill operated from Chester Street in Manchester city centre and at the Trafford Centre, including the Rice Decadence where the footballers visited.
The two main directors have admitted using illegal till codes and other methods to supress cash sales from being notified to HMRC and employing illegal workers.
Manoj Krishan Verma, 42, of Altrincham, Greater Manchester had taken more than £700K and is now being forced to repay the tax due on the cash by HMRC.
While not formally appointed a director Verma has admitted he was in control of Rice Flame throughout its trading period and although his mother and brother were nominally directors they had no role or knowledge of the company.
The Secretary of State banned Manoj Verma from managing or in any way controlling a company or being a director 12 years until December 1 2028, and also Madoka Suzuki, 33, of Manchester, preventing her from managing or in any way controlling a company or being a director nine years until November 29 2025.
The Secretary of State has also disqualified Amit Krishan Verma, 32, and Usha Krishan Verma, 65, both also of Altrincham, until May 29 2019 following an investigation by The Insolvency Service’s company investigation team in Manchester.
Mr A Verma and Mrs Verma were each appointed directors of Rice Flame Bar & Grill Ltd (Rice Flame) between August 2 2007 and February 1 2011. Miss Suzuki was an appointed director between February 1 2011 and April 4 2013, and again between April 29 2013 until Rice Flame went into liquidation on November 12 2013. Mr M Verma was an appointed director of Rice Flame between April 4 2013 and November 6 2013.
Rice Flame was placed into liquidation on November 12 2013, with an estimated deficiency to creditors of £694,863. The company traded operating Asian, Chinese and Thai restaurants.
Mr M Verma and Miss Suzuki did not dispute that they caused Rice Flame to suppress its cash sales by deleting cash sales totalling at least £771,460 from its records, and to fail to declare those sales to H M Revenue & Customs, and failed to ensure that Rice Flame complied with its statutory obligations under the Immigration, Asylum and Nationality Act 2006.
Mr A Verma and Mrs Verma admitted they abrogated their duties as directors of Rice Flame in the period from August 2 2007 until they resigned as directors on February 1 2011, in that they took no part in the management of the company, thus allowing Rice Flame to suppress its cash sales between January 2008 and January 2011 by deleting certain cash sales from its records, and to employ illegal workers.
Commenting on the case, Rob Clarke, group leader director of insolvent investigations North, said: “This deliberate deception on the tax man is totally unacceptable, coupled with the large scale employment of illegal workers it demonstrates a wholesale disregard for the law and a total lack of business ethics.
“Working closely with HMRC, the Insolvency Service has effectively ensured those involved will be banned from the limited liability business environment for a long time.
“It should also be noted that those named as directors who act as front for others and who take no responsibility for the company will also face the consequences.”
