The Insolvency Service has issued a nine-year bar to second-hand car salesman Steven Edwin Prosser after failing to pass on £750,000 to customers from the sale of 47 vehicles.
Prosser from Broxbourne, Hertfordshire, was appointed a director of Sell Your Car With Us Limited in May 2016. The company sold second hand cars and traded from premises on Hare Street in Buntingford, Hertfordshire.
Three years later, the company entered into liquidation in September 2019. The company’s insolvency, however, triggered an investigation which uncovered several instances of “misconduct”.
The company entered into agreements with customers to sell their vehicles for a commission before paying the customers within 14 days of the completed transaction.
Investigators, however, found that at least 48 customers did not receive any returns following the sale or disposal of their vehicles and that the company “failed” to return vehicles to customers who requested their cars back.
While Prosser failed to pass on payments to customers after he sold their cars, he transferred more than £125,000 from the company’s account. Over £52,000 went direct to the used car salesman, £6,000 to a separate company he was a sole director of, and nearly £67,000 went to third parties connected with Prosser.
The Secretary of State for Business accepted an undertaking from Prosser after he did not dispute that he “failed to ensure” the company adhered to the terms and conditions contained within its Sale or Return Agreements in respect of Sellers’ vehicles.
His disqualification came into effect on 11 August 2021, with Prosser being banned for nine years from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company
Katie Legge, deputy head of Insolvent Investigations, said: “Close to 50 people thought they were entering into legitimate agreements to sell their cars through a recognised dealer. But Steven Prosser failed to carry out his side of the bargain and sold their cars, while failing to pass on more than £750,000 to his customers.
“Steven Prosser’s disqualification should serve as a warning that we will bring action against rogue directors who mistakenly believe they can do as they please.”