Bankruptcy restrictions orders have been made against the former partners of Watton-based Lloyd Precision Engineering.
Mr Caine Joseph Craig Lloyd was handed a bankruptcy restriction order for 12 years and his father, Joseph Arthur Lloyd, a 10 year order - following a four day trial at the County Court at Norwich.
The Lloyds were former owners of an engineering firm in Watton which has transferred to new owners.
The firm ceased trading in November 2010 and Joseph Arthur Lloyd (67) was declared bankrupt on the petition of HM Revenue & Customs on 26 June 2012. His son, Caine Joseph Craig Lloyd (40), was declared bankrupt on the petition of HM Revenue & Customs on 30 August2012. The Official Receiver was appointed as Trustee in Bankruptcy and immediately conducted an investigation to determine the causes of the failure and insolvency of the Debtors.
Commenting on the orders, Anthony Hannon, the Official Receiver said:
Bankrupts have a duty to tell their Official Receiver what has become of their assets and why and this, the Lloyds failed to do.
As father and son have found out, such behaviour has resulted in them being investigated by the Insolvency Service and significant bankruptcy restrictions imposed on them.
The Official Receiver established that the firm had traded as engineers from the 1990’s. Enquiries revealed that in November 2010 the assets of the partnership (with a value of between £131,780 and £280,130) were sold for £10 to a successor business (and the £10 was not even paid). In addition, mortgages were created over two family homes to a value of £250,000 and commercial premises for £90,000 without any money being supplied in return.
The mortgages were alleged to be a sham intended to prevent the assets being realised in the bankruptcies for the benefit of their creditors. The Official Receiver started bankruptcy restrictions proceedings on 20 June 2013 and Messrs Lloyd sought to defend the allegations.
Following a four day trial in the County Court at Norwich on 14 – 17 October 2014, District Judge McLoughlin made a finding of unfitness against Mr Caine Joseph Craig Lloyd and imposed a bankruptcy restrictions order for a period of 12 years and District Judge McLoughlin made a finding of unfitness against Mr Joseph Arthur Lloyd and imposed a bankruptcy restrictions order for a period of 10 years.
In his judgement District Judge McLoughlin commented that bankruptcy restriction orders were appropriate because their actions were not reasonable, prudent or honest.
Notes to editors
The firm, Lloyd Precision Engineering, was formed by Joseph Arthur Lloyd in the 1990’s. It traded from premises it owned at Norwich Road Industrial Estate, Watton IP25 6DR.
The petitions were presented under s267 - 271 of the Insolvency Act 1986 against Caine Joseph Craig Lloyd and Joseph Arthur Lloyd on 20 March 2012 and on 26 June 2012 a bankruptcy order was made against Joseph Arthur Lloyd and on 30 August 2012 a bankruptcy order was made against Caine Joseph Craig Lloyd. Joseph Arthur Lloyd is of Essex and his date of birth is of Suffolk and his date of birth is 19 February 1947. Caine Joseph Craig Lloyd is of Essex and his date of birth is 5 September 1974.
The Official Receiver is a member of the Insolvency Service.
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 companies should be made to: The Official Receiver, Eastbrook, Shaftesbury Road, Cambridge CB2 8DR. Tel: 01223 445307 Email: firstname.lastname@example.org.