Suspended sentence for director who did not deliver accounting records to the liquidator
Construction director Mario Huiu failed to account for nearly £500,000 transferred out of his company's accounts in a one-month period in 2020
Huiu also failed to verify more than £200,000 in cash receipts and explain why his Incentive Services Limited company failed with debts of over £160,000
Insolvency Service investigations have resulted in Huiu being given a suspended sentence for failing to provide accounting records
A construction director who failed to explain transfers totalling almost £500,000 out of his company's bank account has been handed a suspended sentence.
Mario Huiu's failure to keep proper accounting records for Incentive Services Limited meant liquidators were also unable to verify cash receipts of more than £200,000 into the same bank account.
The 39-year-old, of Hayesbrook Road, Ilford, was prosecuted for offences under the Companies Act 2006 and Insolvency Act 1986.
Huiu was given a four-month prison sentence, suspended for 12 months, when he appeared at Thames Magistrates' Court on Friday 13 June.
Mark Stephens, Chief Investigator at the Insolvency Service, said:
Limited liability companies provide vital protection for business owners, but this protection comes with serious responsibilities.
Maintaining proper accounting records is not just a legal requirement - it is essential for responsible business management.
Directors such as Mario Huiu who fail to keep accurate financial records put their creditors and trading partners at unacceptable risk and jeopardise their own ability to make sound trading decisions.
Incentive Services Limited was incorporated in March 2017 under the name of EMA Dry-Lining Ltd. The company changed its name three times before settling on Incentive Services Limited in May 2020.
Huiu was sole director of the company when it went into liquidation seven months later in December 2020.
As director of the company, Huiu was required to maintain and preserve company books and records and deliver them to the liquidator.
His failure to do this meant the liquidator was unable to verify transfers of £498,480 from the company's account between May and June 2020.
Huiu's explanation during interview that the money was spent on paying suppliers was uncorroborated and described by the Insolvency Service as "not credible".
Similarly, unverified cash receipts of £261,960 into the same company bank account did not have supporting sales records.
Four other company bank accounts were identified during the course of Insolvency Service investigations. Huiu did not declare them all to investigators.
Huiu's failure to deliver books and records to the liquidator meant the true level of the company's financial turnover could not be verified.
The reasons why the company failed owing creditors £162,482 were also not explained due to the inadequate accounts.
Huiu was disqualified as a company director for six years in November 2021 following initial Insolvency Service investigations into his misconduct at Incentive Services Limited.
