Three bosses from Swindon have been sentenced after listing one as company director whilst the other two ran it in breach of their disqualifications.
Confiscation Orders Of £170,000
On 6 January 2022, a confiscation order worth just over £169k was made against Richard Brown who was ordered to pay the sum within 3 months. The confiscation order given to Alan Roche worth more than £54,300 was previously confirmed in Court on 16 December 2021.
Suspended Prison Sentences
A 20 month suspended prison sentence was given to Richard David Brown, 72, whilst both Alan Roche, 56, and Richard Edward Brown, 37, were given community orders on 26 July at Crown Court in Swindon.
The Court heard that Richard David Brown and Alan Roche ran two companies, Door Stores (Swindon) Ltd (“Door Stores”), incorporated in July 2006, and Fire Secured Door Sets Ltd (“Fire Secured Door Sets”), incorporated in June 2009.
Richard Edward Brown, the son of Richard David Brown, and Alan Roche were listed as Company Directors of both businesses, selling doors and fixtures.
Bankruptcy And Disqualifcation Restrictions Bypassed
However, In June 2010 Alan Roche went into Bankruptcy and was required to resign his Directorship in both companies. Richard Brown Junior carried on as Company Director.
Richard Brown Senior was disqualified from acting as company director for 6 years in March 2011, as a result of his unfit conduct whilst at another company. This meant he could not be involved in the day-to-day running of Door Stores or Fire Secured Door Sets.
Door Stores for a number of years until it went into Creditors Voluntary Liquidation in August 2015, owing creditors more than £240,000. The Statement of Affairs referred to an overall creditors deficiency heading towards c.£300,000.
The complete Door Stores business was then moved to the second company, Fire Secured Door Sets Ltd, with the directors being Richard Brown Junior and Alan Roche.
The Liquidation of Door Stores resulted in an investigation. This found that Richard Brown Senior and Alan Roche were both improperly involved in the day-to-day running of the company.
Alan Roche received the highest salary at Door Stores and Richard Brown Junior received a nominal wage, despite being the registered company director. Employees said all management was looked after by Richard Brown Senior and Alan Roche, whilst Richard Brown Junior was a sales associate at the company.
Because of their conduct at Door Stores, Alan Roche was disqualified for 3½ years in December 2016 and Richard Brown Senior was disqualified for 11 years in January 2017. Alan Roche again resigned from his directorship at Fire Secured Door Sets. Richard Edward Brown was disqualified for 3-and-a-half years.
Alan Roche continued in the management of Fire Secured Door Sets despite his disqualification until August 2017, whilst Richard Brown Senior continued operating up until the company was dissolved in August 2019.
The Insolvency Service invited the defendants for an interview but no-one took up the invitation. Alan Roche provided a statement claiming he was only employed by the companies.
Criminal Prosecutions By The Insolvency Service
The Insolvency Service initiated criminal proceedings. In May 2021, Richard David Brown pleaded guilty to 3 counts of acting in breach of a disqualification undertaking, while Alan Roche pleaded guilty to 1 count of acting in breach of a disqualification undertaking and two counts of acting as a director whilst being an undischarged bankrupt.
Richard Edward Brown pleaded guilty to the aiding and abetting of both defendants in being concerned in the management of Door Stores.
They were sentenced at the Crown Court in Swindon on 26 July. Richard Brown Sr received a 20-month suspended sentence and a further 13 year disqualification order and Alan Roche received an 18-month community order and a further 6 year disqualification order. Richard Brown Jr was given a 12 month community order.
Insolvency Service Comment
Glenn Wicks, chief investigator at the Insolvency Service, said:
For several years, Richard Brown Senior and Alan Roche were actively managing two companies in flagrant and persistent breach of their disqualification breaches and bankruptcy restrictions. Throughout, Richard Brown Junior was listed as company director whilst only taking a small wage and leaving any company management to his father and Roche.
All three defendants had a total and repeated disregard for the disqualification undertakings they had signed and as a result have been brought before the courts.
Are you a creditor looking to recover your money?
If you are a creditor of an insolvent company or a bankruptcy, Oliver Elliot can help you address your claim and concerns arising from the insolvency.
Share This Page!
What Next?
Expert Advice Is Just A Click Away
If you have any questions in relation to Sentenced For Running Companies Whilst Banned 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
This page Sentenced For Running Companies Whilst Banned is not legal advice and should not be relied upon as such. This article Sentenced For Running Companies Whilst Banned 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
