David Green (56), from Liverpool, signed a disqualification undertaking following an investigation by the Insolvency Service. The ban prevents him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
Bilt Group Limited was incorporated in February 2016 as the vehicle to carry out significant construction projects in Liverpool, particularly in the Chinatown area.
Just 10 months later, however, in December 2016 Bilt Groups's principle customer decided to terminate the company's contract as they weren't satisfied with the standard of work delivered.
Without revenue coming into the company from the principle funder, Bilt Group was unable to pay its debts and entered into liquidation, owing £590,000 to creditors.
Insolvency practitioners were appointed to wind-up the company when they reported to the Insolvency Service that payments worth in excess of £1 million had been paid by Bilt Group to third parties and were not necessarily legitimate business expenditure.
Investigators discovered that David Green caused Bilt Group to move around £375,000 to a separate company which was also under David Green's control, while payments in excess of £660,000 were made to third parties not clearly linked to the company's trading activities.
Further investigations found that there was no evidence within Bilt Group's records that these payments were genuine company expenditure.
On 6 December 2018 the Secretary of State accepted a 7-year disqualification undertaking from David Green and his ban was effective from 27 December 2018
Signing the undertaking has meant David Green did not dispute that he failed to supply adequate books and records to liquidator that would have explained the nature of the company's transactions.
Martin Gitner, Deputy Head of Insolvent Investigations for the Insolvency Service, said:
David Green was trusted with funds to carry out important redevelopment projects in Liverpool. But he blatantly disregarded his responsibilities when he paid significant sums to third parties totally unconnected to the building works.
Seven years is a significant ban and should serve as a warning to other directors that there are serious consequences if you are found misusing company funds.
The Serious Fraud Office announced on 17 January 2019 that it had opened a criminal investigation into a suspected fraud relating to the Liverpool Chinatown redevelopment. The Serious Fraud Office encourages members of the public who have invested in this redevelopment to complete an online questionnaire.
Notes
David Green is from Liverpool and his date of birth is April 1962.
Bilt Group Limited (Company number 09981687 ).
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company's property
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
