The director of a letting agency has been disqualified from acting as a company director for seven years following an investigation by the Insolvency Service.
Philip Secunda, director of Town & Country Letting & Management Limited, was disqualified for failing to secure and pass on tenant deposits.
David Brooks, chief examiner at the Insolvency Service, said: “The undertaking signed by Secunda sends a clear message to company directors that there are penalties for not taking seriously your obligations as a director.
“If your company has failed and you have neglected your responsibility to protect tenancy deposits and prevent losses to tenants and landlords as stipulated by housing law, the Insolvency Service will investigate you and you could be removed from the business environment.”
Town & County Letting & Management was placed into voluntary liquidation in August 2011, owing over £60,000 in tenant deposits.
Instead of securing and protecting the deposits, Secunda used the money as part of the company’s general funds, resulting in the loss of £60,791.50 of landlord and tenant deposits.
Under the Housing Act 2004, for tenancies that have been started or renewed since 6 April 2007, landlords and agents in receipt of a deposit are required to protect it using an approved tenancy deposit scheme created for the purpose of “safeguarding tenancy deposits paid in connection with shorthold tenancies and facilitating the resolution of disputes arising in connection with such deposits”.
Secunda, 66, has given an undertaking to the Secretary of State for Business, Innovation and Skills that he will not act as a director of a limited company until May 2020.