Press release

Breach of bankruptcy restrictions leads to further sanctions

George Kenneth Ilko was sentenced by Peterborough Crown Court to 51 weeks imprisonment, suspended for 2 years, with a requirement to undertake 240 hours of unpaid work after pleading guilty to acting in the management of six companies whilst subject to a bankruptcy order and a bankruptcy restrictions undertaking.

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At the hearing on 23 November 2015 Mr Ilko also pleaded guilty to a number of fraud offences, amounting to £11,000, relating to the presentation of cheques and the authorised use of company bank accounts.

The conviction follows an initial investigation by the Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills (BIS).

Mr Ilko was further disqualified from acting as a director of a limited company for 6 years.

Melody Rose Ilko, also from Cambridge, was sentenced to an 18 month community order with a requirement to undertake 180 hours of unpaid work, for aiding and abetting her husband in relation to the Company Director Disqualification Act offences.

Mr Ilko, aged 40, was adjudged bankrupt for the second time in November 2008. His bankruptcy lasted 1 year and he was then subject to a bankruptcy restrictions undertaking for a further 4 years. As a result of the bankruptcy order and the subsequent bankruptcy restrictions undertaking Mr Ilko was prohibited from acting in the management of any company without leave of the Court.

The court heard, Mr Ilko took little heed of his bankruptcy restrictions, save for seeking to avoid them. At all times, he was intimately involved in the formation, promotion and management of six companies and presented himself to clients as if they were his companies. His wife willingly assisted him by acting as a formal director and providing her signature when necessary, despite playing no effective role in the companies. Mr Ilko kept from other business partners the truth about his status, and then used the companies for the purpose of solving his own personal financial problems. He also passed a number of cheques that he either knew would not be honoured or knew were drawn without authority.

DCIO Ian West from the Department for Business Innovation and Skills said

The Department for Business Innovation and Skills (BIS) will take the necessary steps to ensure that those persons that commit company related fraud whilst acting as company directors whilst they are disqualified from doing so, will be investigated and prosecuted, as will those that aid and abet them. The conviction of Mr & Mrs Ilko should serve as a warning to others.

Notes to editors

George Kenneth Ilko’s date of birth is 26 August 1975. He is formerly of Cambridge, now of Gloucestershire.

Melody Rose Ilko’s date of birth is 19 January 1982.

The breach of the Undertaking was contrary to the Company Directors Disqualification Act 1986.

The fraud offences were contrary to the Fraud Act 2006.

BIS’ mission is to build a dynamic and competitive UK economy, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. Further information about the work of the Criminal Investigations and Prosecutions team 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.

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Published 23 December 2015