Fraudulent scaffolding boss disqualified for 12 years
The boss of a Scottish scaffolding contractor has been disqualified from being a director following an investigation by the Insolvency Service.
Irvin John Downey, 37, director of Tubular Scaffolding Limited, was handed a 12 year order against him being a company director at a hearing in Hamilton Sheriff Court on 27 July 2016.
The effect of the order is that Mr Downey cannot, except with permission of the court, be the director of a company or take part in the promotion, formation or management of a limited company.
On 25 July 2014, Blantyre-based Tubular Scaffolding Limited, with liabilities to creditors of £506,937 was placed into compulsory liquidation following a winding up petition lodged by HM Revenue & Customs.
Following the Liquidator’s appointment, the investigation found Mr Downey, the sole director and shareholder of the Tubular Scaffolding Limited from 1 August 2012, used the company, which was originally incorporated in 1932 and had an excellent credit rating, as a vehicle to commit a fraud against suppliers.
Mr Downey accomplished the fraud through the submission of false and inaccurate information within loan and credit applications to unsuspecting suppliers in the knowledge that the company’s established credit history would result in the applications not being subjected to scrutiny.
Mr Downey’s fraudulent actions, in a four month period, resulted in a loss to suppliers in the sum of £264,497.
Robert Clarke, head of company investigation at the Insolvency Service, said: “The disqualification of Mr Downey sends out a clear message that where a corporate vehicle is being used to facilitate actual or potential fraudulent activity action will be taken to remove the directors from the business environment for a lengthy period of time.”