Two Peterborough-based mechanics and motor parts suppliers have been banned from acting as a director for a total of 25 years, after one of the directors provided false documents to secure £176,000 worth of loans.
The court heard that Adam Hughes and Andrew Wood were directors of Concorde Tyre and Exhaust Centres Ltd. The company was incorporated in 2011 and sold motor parts, as well as providing repair services.
Between 2011 and 2017, the company expanded rapidly, operating nine sites across Central and Eastern England. However, this growth reportedly led to “cash flow problems” and administrators were appointed to undertake a pre-packaged sale of the business.
Following their appointment, however, the administrators discovered a third party had petitioned the court to wind-up the company.
The administrators also had “difficulties” establishing who owned the company’s assets and who had secured loans against them.
The directors’ conduct was referred to the UK’s insolvency service where investigators uncovered that Hughes and Wood provided false documents, including invoices, emails and bank statements, to “secure more than £176,000 from an asset finance company”.
Further enquiries also established that on at least three separate occasions, Hughes supplied false documents to secure finance against assets Concorde did not own.
It was also discovered that Wood knew that Concorde Tyre and Exhaust Centres did not own the assets but “allowed his business partner to secure finance under false pretences”.
Hughes received a 13-year disqualification order in the High Court before Judge Barber on 20 July 2021. Meanwhile, his business partner, Wood, had signed a 12-year disqualification undertaking a year earlier on 2 September 2020.
Mark Bruce, chief investigator for the Insolvency Service, said: “Directors securing funds against the assets their company legitimately owns is a perfectly acceptable practice.
“Adam Hughes, however, failed to act honestly while securing more than £176,000 and Andy Wood failed in his diligence. 25 years’ worth of bans is a substantial amount of time to be removed from the corporate arena and their disqualifications should serve as a warning to other directors tempted to defraud creditors by falsifying documents.”