Asset stripping group sentenced
FOUR men have been jailed following a fraud case which saw a shopfitting, tobacco and confectionery and paper stationary business asset stripped.
Saleem Kiani, Christopher Fox, Robert Green and William Lane were convicted at Sheffield Crown Court after admitting their dishonest involvement relating to the collapse of Uno Shopfitting, Wavetown and Abbotts Wholesale.
The quartet asset stripped the businesses to the tune of around £4m.
The defendants were given prison sentences ranging from nine months (suspended) to 21 months in jail.
All have been disqualified as directors and one is to be considered for a Serious Crime Prevention Order.
The group was jointly engaged in asset stripping and during 2001 and 2002, obtained control of these three companies, which had been until that stage successful, solvent and profitable.
As a result of the defendants’ actions, both before and after purchase, the companies “lost their confidence, solvency and ultimately, their ability to trade successfully, while employees lost their jobs”.
Each company was obtained through false claims by the defendants of substantial wealth and promises of investment.
When the purchase of each company actually took place, however, the defendants used the company’s own money to acquire it – fundamentally undermining the company in the process.
Once control had been achieved, there was no investment and instead, the company account was effectively used as a personal ‘piggy bank’.
All the companies went into receivership in October, 2002.
