Brakes slammed on motorcycle company boss with 12 year ban for raising false invoices and transferring criminal property
Mitchell James Mosley, a director of Red Dog Motorcycles Limited (‘RDML’) has been banned from being a director for 12 years by the County Court at Medway for raising false invoices and causing the company’s bank account to be used to convert and transfer criminal property of at least £524,295.
The disqualification, following an investigation by the Insolvency Service, which found Mr Mosley (50) raised the false invoices for the purchase and sale of 11 motorbikes, means he cannot act as a director, control or manage a company until 2026.
Commenting on the disqualification, Andrew Stanley, Official Receiver for Medway Official Receiver’s office said:
Directors have a range of fiduciary duties to the company that they hold stewardship for and these powers should be used solely for the benefit of the company.
The seriousness of Mr Mosley’s conduct warranted a 12 year disqualification and sends a clear message to other company directors that if they abuse the powers bestowed on them they will be investigated by the Insolvency Service and removed from the business environment for a significant period of time.
Mr Mosley stated that RDML, which sold new and used motorcycles, spares and accessories, suffered cash flow problems in 2009 and he sought advice from an Insolvency Practitioner.
RDML entered a Creditors Voluntary Arrangement (“CVA”) in March 2009 agreeing to pay 12 monthly contributions of £1,5000, increasing these to £2,000 for the following 48 months resulting in creditors receiving 45p in the pound.
Mr Mosley was arrested by Police in June 2011 and charged with 11 counts of money laundering. An investigation showed that Mr Mosley raised false invoices for the purchase and sale of 11 motorbikes which had never come into his or RDML’s possession. The invoices were raised in an attempt to disguise the source and circumstances of the receipts into the company’s bank account resulting from transactions he agreed to undertake using compromised debit cards belonging to third parties who were unaware of the transactions.
Mr Mosley stated he then paid 90% of the money to the third party whose instruction he was acting upon and that RDML benefitted from the remainder. In all, Mr Mosley caused RDML’s bank account to convert and transfer criminal property totaling at least £524,295.
As a result of Mr Mosley’s arrest, RDML was unable to continue trading and make the payments into the CVA. The Supervisor of the CVA subsequently presented a petition to wind up RDML and a winding up order was made by the County Court at Medway on 25 June 2012.
On 17 September 2013 Mr Mosley was disqualified from acting as a director for a period of 5 years under S2 Company Directors Disqualification Act 1986. Due to the serious nature of Mr Mosley’s conduct as a director of RDML, the Official Receiver, acting on the direction of the Secretary of State, sought a lengthier disqualification. The court agreed and District Judge Green made a twelve-year disqualification order against Mr Mosley in the County Court at Medway.
Notes to editors
Mitchell James Mosley is of Kent and his date of birth is 20 June 1964.
Both directors’ disqualification orders will run concurrently.
Red Dog Motorcycles Limited (CRO No. 04541513) was incorporated on 20 September 2002. Mr Mitchell James Mosley was appointed a director of the company on 1 March 2007. The company’s business was that of selling new and used motorcycles, spares and accessories.
The company ceased to trade in June 2011 and went into compulsory liquidation on 25 June 2012, with losses of more than £414,000.
The petition was presented on 18 February 2012 and the winding up order was made on 25 June 2012.
On 14 October 2014 District Judge Green made a twelve-year disqualification order against Mr Mitchell James Mosley in the County Court at Medway. 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
- act as an insolvency practitioner
- be a receiver of a company’s property
In addition 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: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: firstname.lastname@example.org.
Published: 14 November 2014
From: The Insolvency Service