The director of an investment company has been disqualified from acting as a company director for 10 years, following an investigation by The Insolvency Service.
Terence Farr, director of Claremont Forbes Land & Property Limited, was disqualified for failing to maintain proper accounting records and for running two Collective Investment Schemes.
Mark Bruce, chief examiner at The Insolvency Service, said: “Company directors enjoy the privilege of limited personal liability but they are expected to follow the law, which Farr did not do by running an unauthorised investment scheme.
“Such schemes invariably target vulnerable people often with little money, making them even more destitute.
“Directors are also required to keep sufficient accounting records that show and explain company transactions. However, Farr failed to do this and the volume of unexplained transactions over its trading lifetime was highly suspicious”.
The investigation found Farr had not kept adequate records to determine the relationship between both the company and its investors, and the company and associated Limited Liability Partnerships.
Company records failed to verify the reason or legitimacy of £944,477 of income into and £559,465 payments from the company bank account.
It also found Farr established, operated and promoted two illegal Collective Investment Schemes in two Limited Liability Partnerships without authority from the Financial Conduct Authority.
Farr gave an undertaking to the Secretary of State for Business, Innovation and Skills that he will not act as a director of a limited company for 10 years until 2023 without leave of the court.