John Paul Pearson has been disqualified from acting as a director for 7 years for producing a false document to an invoice finance provider in order to obtain finance for Milkshake Creations Limited.
Milkshake Creations Limited was setup in 2010 by a well known former professional footballer and another company that acted for the England World Cup squad in marketing their images and financial interests. Both parties were shareholders and directors of Milkshake. In August 2012, Mr Pearson was also appointed as a director.
An investigation by the Insolvency Service revealed that in March 2013, Mr Pearson purchased the shares in Milkshake from the other directors and entered into an agreement to pay over the following months. The other directors resigned, leaving Mr Pearson as the sole director.
The investigation by the Insolvency Service also found that in July 2013, Mr Pearson entered into discussions with and produced a forged document to an invoice finance company, which subsequently paid Milkshake Creations £46,000.
The invoice finance company were not able to recover any funds from Milkshake.
When Mr Pearson did not make the payments to the previous directors as agreed, they appointed an administrator and Milkshake Creations was placed into Administration on 14 August 2013.
At the time of administration, Milkshake had debts of more than £1million including the £46,000 owed to the invoice finance company and approximately £450,000 owed to the previous directors.
Commenting on the disqualification, Cheryl Lambert, Chief Investigator at the Insolvency Service, said:
Directors who deliberately cause other businesses to lose money can expect to be investigated by the Insolvency Service and enforcement action taken to remove them from the market place.
Mr Pearson has demonstrated that he is unfit to be involved in the management of a limited company. Taking action against him is a warning to directors of their appointments come with responsibilities and requirements to act with due care.
Notes to editors
Milkshake Creations Limited (CRO No. 07171951) was incorporated on 1 March 2010. Its registered office was 1st Floor, 1 Great Cumberland Place, London, W1H 7AL. It traded from the same address. John Pearson was the only director at the time of Liquidation.
Milkshake Creations Limited was placed into Administration on 14 August 2013. The company subsequently entered into Liquidation on 20 January 2015.
John Pearson is of London and his date of birth is 22 August 1974.
The Secretary of State accepted an undertaking from John Pearson on 11 August 2015. The disqualification is due to commence on 1 September 2015.
A disqualification order or undertaking 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
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Further information on director disqualifications and restrictions is available.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
All public enquiries concerning the affairs of the company should be made to: Cheryl Lambert, Head of Outsourced Investigations, Investigations and Enforcement Services, The Insolvency Service, 3rd Floor, Abbey Orchard Street, London SW1P 2HT. Tel: 0207 596 6117. Email: Cheryl.Lambert@insolvency.gsi.gov.uk.
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Published: 14 August 2015
From: The Insolvency Service