Rogue Directors Banned

The Insolvency Service has disqualified two “reckless” financial directors who claimed to sell financial products to people with poor credit ratings. The "financial products" were initially franchises which were being sold to supposedly help people out of their financial troubles by providing them with 6-figure incomes. Average franchise purchase costs were about £6,000 plus VAT and over 27 people got caught out for £120,000! The recorded commissions they earned amounted to just £450!

After being caught out the business transferred to another company and began offering advice on debt management and IVAs, as well as again selling franchises.

This vividly illustrates the need for anyone suffering from financial troubles, to seek proper and professional advice, rather than trying to get out of their problems using a "get rich quick" scheme. I'm very sorry to say that if it waddles and quacks it's usually a duck and you should stay clear of it! This is where a Licensed Insolvency Practitioner is worth his weight in gold (although sadly I don't get paid that way...!) in providing good, sound advice on dealing with financial problems.

It also shows that, eventually, rogue directors will get caught and punished appropriately.

The disqualification follows the Service liquidating the directors' companies last year, which included Charter Financial Solutions and Finance Select on the grounds of public interest.

Investigators found that, amongst other matters, the directors had deliberately given false information to a high street bank when applying for a company bank account. The directors wrongly stated they had never been associated with a business that had had a court order of a debt registered against it. In all five companies were closed down and Christopher Lake and Stephen Knight have been banned for a total of 16 years.

Further information can be obtained from The Official Receiver, Public Interest Unit North 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Telephone No: 0161 234 8531. Email: piu.north@insolvency.gsi.gov.uk.