Directors of contracting business handed 16-year ban
Two directors of a South Yorkshire plastering company Plast-Tec Plastering Systems, have been disqualified for a total of 16 years for creating falso invoices.
Michael O’Toole, 56 of Sheffield and Mark Rice, 39 of Sheffield each received an eight-year order disqualifying them, after an Insolvency Service investigation found invoices totalling £760,000 had been factored, of which only one, of £45,000, was found to be a true invoice.
Rice had been a director since the incorporation of Plast-Tec in 2007, whilst O’Toole had been involved in the business as a director since 2013.
The company’s registered office was at Neepsend Triangle Business Park, Burton Road, South Yorkshire. It was forced to appoint liquidators from Begbies Traynor in May 2016 following the allegations, and it was officially dissolved on 23 June 2017.
The directors of the company paid £5,000 towards its liquidation according to documents, but secured creditor Lloyds Commercial Financing was owed £413,446.
Martin Gitner, deputy chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said: “The directors failed to run their business in accordance with the terms set out in its agreement with the invoice discount facility provider.
“The company obtained money to which it was not entitled by submitting details of sales invoices which did not exist and this caused the provider to incur financial losses.
“Using false documents is contrary to the conduct expected of a company director and the Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from operating a business in an environment with the benefit of limited liability.”
