Two directors of debt advice firm Smart Credit & Debit have been banned for a total of 12 years following an investigation.
James Smith, 25, and Richard Wilson, 47, both of Keighley in west Yorkshire, have been disqualified from acting as directors for six years each after they failed to maintain proper accounting records, or to account for significant cash withdrawals from the company.
The Insolvency Service’s company investigation team based in Leeds found that Smith and Wilson took advantage of and took money from people, while not providing the services they were being paid for.
The investigation revealed that the company’s records did not account for substantial cash withdrawals totalling £117,717, which occurred over the 10-month period that the business traded for.
Smart Credit & Debit was placed into creditors’ voluntary liquidation on 25 May 2011, owing £92,528 to creditors.
Of that, £62,415 was owed to trade and expense creditors, which had provided services to Smart Credit & Debit but had not been paid.
Clive Tranter, head of the company investigation north east team, said: “These directors displayed a lack of trust in their dealings with the financially vulnerable, their own clients and other companies that they provided with services.
“Directors of companies must ensure that they maintain sufficient accounting records that show and explain the company’s transactions as required by law. These directors failed to do so. The Insolvency Service will take action against directors who fail to meet these obligations.”
Smith and Wilson have given undertakings to the secretary of state for Business, Innovation and Skills not to promote, manage or be directors of a limited company until 2019.
Their disqualifications commenced on 30 and 31 January respectively.