The director of S’coolwear For Less, a school clothing company based in Bedfordshire, has been banned from acting as director of a limited company for eight years.
Leslie William Stephens was disqualified following an investigation by The Insolvency Service that found he had borrowed from the bank against sales that never actually took place.
Mark Bruce, a chief examiner at The Insolvency Service, said: “Directors who seek to improperly operate invoice discounting facilities or similar financial products damage commercial confidence and harm the UK’s reputation as a place to do business.”
S’coolwear For Less Limited went into administration on 9 June 2011 owing more than £500,000 to creditors, including £475,745 to its bank under the invoice discounting facility, operated by Stephens.
From 3 December 2010 to 6 May 2011, Stephens faked 2,033 invoices for various amounts relating to goods that had not been supplied.
His bank lent him funds of £513,799 against future payments for these goods but payments failed to materialise.
The bank was able to recover just £38,054 – less than a tenth of the amount owed – leaving an outstanding balance of £475,745 as at 9 June 2011.
Stephens, 55, of London has given an undertaking that he will not act as a director of a limited company from 23 April 2013 until April 2021.