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Business directors banned for fictitious invoices 19 August 2016

The Insolvency Service has banned a pair of family business directors, after they raised false invoices and ended up owing the bank nearly £400,00.

Father and daughter directors of Kingsway Lansdown Limited, a retail and wholesaler of electric goods, have been disqualified for a total of 16 years for raising false invoices.

Raj Kumar Thaneja and Ellena Jane Kehoe were directors of the Bradford-on-Avon business before it came under administration in June 2014. It had a total of £515,000 recorded assets and a £1.3m of debts.

Kehoe was a recorded director of the company although her father, Thaneja, was not formally appointed, he did not dispute to acting as a director.

Thaneja caused the company to raise the fictitious invoices to its bank which acted as an invoice discounting facility provider.

This meant that the bank would release funds from unpaid invoices to help manage cash flow while the company would remain responsible for the collection of payments.

However, his daughter Kehoe failed to prevent this and was therefore also disqualified from acting as a director.

Throughout December 2013 to May 2014 the company raised at least 26 false invoices with a total value of £238,000 – causing the bank to release £191,000 to the company.

The shortfall currently owed to the bank on the facility is £394,000.

Susan MacLeod, chief investigator at the Insolvency Service, said: “The directors did not run their business in accordance with the terms set out in its agreement with the invoice discount facility provider.

“The directors failed to live up to the expectations of the business community.”

 

 

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