Director Disqualification: Rolex Watches And Personal Jet Hire

In a report dated 18 December 2023 on Anthony Marks from the Insolvency Service said that Mr Marks had caused and or allowed Westway Holdings Limited to provide false or misleading information within promotional literature and annual accounts used to induce parties to invest in company bonds and ISA products.

As a result, with effect from 19 December 2023, Mr Marks was disqualified from acting as a Director for a period close to the maximum period (15 years) that the Secretary of State may seek under the Company Directors Disqualification Act 1986 ie. in this case it was 14 years.

Westway Holdings Limited

Westway Holdings Limited was reported to have acted as a vehicle for the receipt of at least £26m of funds from Investors into bonds and ISAs.

The Company went into Administration on 15 May 2020 and then into Creditors Voluntary Liquidation on 30 April 2021.

Company promotional literature state that these investment funds were to be used towards the purchase and development of supported housing. Westway Holdings Limited Information Memorandums [“IMs”] and company annual accounts for the period ending 28 February 2018 were used to induce investment to company bonds and ISAs.

These the Insolvency Service reported contained false information regarding properties stated to be owned by the company with gross development values in excess of £6m Westway Holdings Limited IMs contain information regarding Anthony Marks’ previous business history and his further companies. This the Service said failed to include that he had formerly been convicted of conspiracy to defraud and disqualified for 5 years in 2002 whilst known as Mark Anthony McGovern, together with the name of the company he and others were convicted of carrying on the business of, with intent to defraud.

Misleading Information

The report goes on to say that Westway Holdings Limited IMs included false or misleading information regarding a housing trust stated to be amongst the company’s contacts in the supported housing network. Westway Holdings Limited IMs included false information regarding advisors and service providers acting for the company. Anthony Marks provided false information to an FCA regulated firm which approved Westway Holdings Limited promotional literature for investors. In that: Anthony Marks stated in a questionnaire provided to this firm that he had not been convicted of a criminal offence or disqualification as a director. Anthony Marks was convicted of conspiracy to defraud and disqualified for 5 years in 2002 whilst known as Mark Anthony McGovern and further convicted of transferring criminal property in 2008 under the name Mark McGovern.

Use Of Funds

As to the deployment of the funds the report said that Anthony Marks caused and or allowed Westway Holdings Limited to misapply investor funds of at least £1.2m by making payments in respect of his and family members’ personal expenditure. These funds would have been derived from investments received by the company and were in addition to sums of at least £582,000 paid directly by the company to Anthony Marks. In that: Anthony Marks caused company funds of at least £203,318 to be used towards his purchase of a house. Anthony Marks caused company funds of at least £141,958 to be used towards his personally rented properties in the UK and Spain. Anthony Marks caused company funds of at least 265,580 Euros to be used towards further personal rent or property transactions in Spain.

Luxuries

Mr Marks clearly it seems had exquisite taste in jewellery having caused company funds of at least £53,215 to be used towards the purchase of Rolex watches.

In addition, Mr Marks had caused company funds of at least £121,770 to be used towards personal jet hire to Dubai and Estonia and hotel accommodation in Dubai.

Anthony Marks was reported by the Insolvency Service to have caused company funds of at least £182,200 to be used towards his relatives’ living, student, household, and other expenses. Anthony Marks caused company funds of at least £30,000 to be used towards the purchase of shares in another company in a relative’s name. Anthony Marks caused company funds of at least £21,862.50 to be used towards electrical works, including on a cinema room at his privately rented accommodation. Anthony Marks caused company funds of at least £214,323 to be used towards the purchase of premier league football tickets and VIP expenses. Anthony Marks caused or allowed company funds of at least £19,957 to be used towards purchases at high street shops. Anthony Marks caused or allowed company funds of at least £471,790, which should have been used towards the purchase and development of supported housing, to be used towards speculative transactions on the Gibraltar stock exchange and a loan made to a third party. In that: Anthony Marks caused Westway Holdings Limited to enter into speculative transactions on the Gibraltar stock exchange. Company funds of £321,790 were used to pay for losses on these transactions.

Monies Loaned

This somewhat lengthy report on Anthony Marks disqualification and use of the funds received said he caused or allowed company funds of £150,000 to be used as a loan to a third-party. As part of the terms of this loan agreement the funds advanced together with interest of £90,000 would be paid. Anthony Marks has failed to provide the Insolvency Service with an explanation why company funds derived from investors, which were to be used to acquire and develop supported housing, were used to make this loan. Anthony Marks has further failed to advise the Insolvency Service why the initial loan repayment instalment of £25,000 was paid to a family member and a £90,000 interest repayment made was paid to a further third-party’s bank account, rather than to Westway Holdings Limited’s bank account. The loan balance of £125,000 remained outstanding as at Westway Holdings Limited’s Administration.