The Insolvency Service has disqualified care home director Laurie Gray for six years after the company went into liquidation and had no explanation for the £518,000 left in its company accounts.
Gray was a director of Seabank Care Ltd in Saltcoats, incorporated in 2020, to operate Seabank Care Home. The company traded successfully for several years but began to encounter difficulties in 2016 and 2017.
No new admissions to the care home were allowed, and by 2018 it was recommended that the company cease trading and went into liquidation. A second care home, Woodside Care Home, also operated by Gray, was also forced to close due to the liquidation.
The liquidator was appointed, and an Insolvency Service investigation found that he had failed to “preserve or deliver up” adequate accounting records for Seabank Care Ltd.
He was unable to explain the company’s expenditure including cheque payments totalling £111,047. Other unexplained withdrawals included some worth £62,887, and payments to a connected party and their companies totalling £343,717. Funds leaving the company accounts totalled almost £518,000.
As a result, on 6 April 2021 the Secretary of State accepted a disqualification undertaking from Gray which meant that he cannot directly or indirectly, become involved, without the permission of the court, in the promotion, formation or management of a company.
Rob Clarke, chief investigator at the Insolvency Service, said: “As director of Seabank Care Home, Laurie Gray was entrusted with looking after the residents in his care, including using the funds they paid on legitimate costs. Instead, he failed to keep records or account for almost £518,000 leaving the company accounts.
“This ban should serve as a warning to other directors that if you fail to meet your obligations, including preserving accounting records, we can take action.”