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Director faces prison sentence for company record failings 13 February 2013

An Essex-based builder has been handed a four-month jail term suspended for one year after failing to keep proper company records.

James Patrick Lloyd, of Barkingside in Essex, was the sole director of Quality Building Developments, an electrical and heating installation company in Ilford.

He pleaded guilty to failing to preserve books and records and was sentenced at Snaresbrook Crown Court.

He was also unable to explain why more than £1.1m was withdrawn from the company account via cashed cheques and £124,424 taken out in cash.

Quality Building Developments was wound up on 23 September 2009 on the petition of HM Revenue and Customs, leaving trade and tax debts that totalled £269,612.

Lloyd provided the official receiver with five boxes of books and records but these did not include any construction industry scheme records, which sets out the rules for how payments to subcontractors must be handled, nor any details of the wages paid to subcontractors.

His conviction follows an investigation by the Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills (BIS).

There were also no records at all to cover the period between March 2004, when the company was incorporated, and April 2007.

Ian West, deputy chief investigation officer from BIS, said: “Company directors should take note that it is a criminal offence to fail to keep adequate accounting records and be in no doubt that the Department of Business will prosecute those that ignore this warning.”

 

 

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