Overview Of Claims Management Boss
A Nottingham-based claims management boss, previously jailed for being in contempt of court, has been fined £25,000 for failing to carry out Director duties, which had a failure to deliver up company records at its core.
35 year old Haroon Karim appeared at Nottingham Magistrates Court on 2 February 2022. He pleaded guilty before District Judge Grace Leong in failing to preserve company accounting records.
As well as being disqualified from running any company for two years, Haroon Karim was fined over £25,000. This was to run concurrently with the seven year ban he received in 2018.
Claims Management Companies
During the proceedings, the Court heard that Bramcote-based Haroon Karim ran several claims management companies, assisting people with personal injury claims following road traffic collisions.
One of the companies based in Nottingham, ACA Accident Claims Assistant Ltd, entered into Creditors Voluntary Liquidation in August 2016, which triggered an investigation by the Insolvency Service.
Failure To Produce Records
Investigators, however, were frustrated in their enquiries as Haroon Karim failed to deliver the company’s records despite repeated requests.
The claims management boss went on to tell investigators he had delivered the records to another party but could not verify this when questioned.
Unnecessary Expenses
Further enquiries uncovered bank records demonstrating that Haroon Karim spent company money on unnecessary expenses despite having company debts. One of these purchases was a designer suit worth £1,000, which the claims management boss claimed he bought to attend an awards ceremony.
Because of the lack of records, neither the Insolvency Service nor the Liquidator could establish what happened to the Company’s tangible assets which had been detailed on the Statement of Affairs as approaching £140,000 but with an estimated to realise value of nil. This led to Haroon Karim signing a seven-year disqualification undertaking in July 2018.
Criminal Investigation
A criminal investigation was then launched into the conduct of the claims management boss, which resulted in Haroon Karim being charged on three counts, including failing to deliver up books and records to the liquidator, failing to cause ACA Accident Claims Assistant Limited to keep accounting records and failing to preserve company accounting records.
A trial was set for 2 February 2022 before Haroon Karim pleaded guilty and was sentenced with a fine of £20,000 and costs of £5,715.34.
In separate proceedings, Haroon Karim was sentenced to six months for contempt of court. This was in connection with a claim brought by an insurance company in September 2017 after Haroon Karim had forged a claimant’s signature without their knowledge to start insurance compensation proceedings.
Insolvency Service Comment
Julie Barnes, Chief Investigator for the Insolvency Service, said:
Haroon Karim was evasive throughout our enquiries and with a lack of company records was unable to explain exactly what happened to the company assets – something we’ll never know.
But the court recognised the severity of the claims management boss’ misconduct and have not only extended his ban from running limited companies but ordered Haroon Karim to pay a substantial fine.
We hope this serves as a stark warning to company directors that they have clear responsibilities and if they are not upheld, could lead to disqualifications and even criminal prosecutions.
Are you a Director of a company?
If you are a Director of a UK insolvent company, Oliver Elliot can help you. We Know Insolvency Inside Out.
Share This Page!
What Next?
Expert Advice Is Just A Click Away
If you have any questions in relation to Failure To Deliver Up Company Records Leads To Fine Of £25,000 then contact us as soon as possible for advice. Oliver Elliot offers a fresh approach to insolvency and the liquidation of a company by offering specialist advice and services across a wide range of insolvency procedures.
Our expertise is at your fingertips.
Disclaimer: Failure To Deliver Up Company Records Leads To Fine Of £25,000
This page Failure To Deliver Up Company Records Leads To Fine Of £25,000 is not legal advice and should not be relied upon as such. This article Failure To Deliver Up Company Records Leads To Fine Of £25,000 is provided for information purposes only. You can contact us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.
Recent Posts / View All Posts
