Press release

Director of insolvency practitioner firm is out of practice

David Pollard, a director of an accountancy firm and insolvency practice has been disqualified for 6 years following an investigation by the Insolvency Service which uncovered that he had held on to client funds and claimed duplicate fees.

Mr Pollard (44) of Chesterfield, Derbyshire gave an undertaking to the Secretary of State for Business, Innovation and Skills not to be a director of a limited company for 6 years from 12 February.

Mr Pollard was the director of TAG (Chesterfield) Ltd and The Recovery Partnership Ltd which were wound up by the court in the public interest on 9 May 2013 owing creditors and shareholders £90,434 and £8,484 respectively. A claim for £156,615 was received for the latter but was disputed by Mr Pollard and is not included in the overall amounts due to creditors and shareholders.

The misconduct identified by investigators included Mr Pollard breaching his fiduciary duties by inappropriately handling clients’ and liquidation monies held on trust.

Mr Pollard failed to separate the financial affairs of TAG (Chesterfield) Ltd and The Recovery Partnership Ltd; as such it was not possible to determine elements of each company’s income and expenditure.

Investigators also uncovered that at least £24,157 was retained after companies were compulsory wound up or dissolved, that duplicate fees of at least £12,100 were taken and payments of at least £30,020 were made to connected parties and not disclosed to creditor. Those payments have not been recovered.

Commenting on the disqualification, Ken Beasley, Official Receiver of the Insolvency Service’s Public Interest Unit, said:

The Insolvency Service will always look closely at individuals who hold themselves out to be financial professionals but who cannot be trusted to handle people’s money in a proper way.

Notes to editors

TAG (Chesterfield) Ltd [CRO No. 07379216] was incorporated on 16 September 2010. The registered office of TAG is currently situated at 2nd Floor, 3 Piccadilly Place, Manchester, M1 3BN. The registered office of TAG prior to the liquidation was situated at Future House, South Place, S40 1SZ.

The Recovery Partnership Ltd [CRO No. 07585474] was incorporated on 31 March 2011. The registered office of Recovery is currently situated at 2nd Floor, 3 Piccadilly Place, Manchester, M1 3BN. The registered office prior to the liquidation was situated at Future House, South Place, S40 1SZ.

David Pollard is of Chesterfield and his date of birth is 12 December 1970.

David Pollard gave an undertaking in respect of his conduct in TAG and Recovery on 21 January 2015 to the Secretary of State not to be a director for 6 years. The undertaking has been accepted and the period of disqualification commenced on 12 February 2015.

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

In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations. Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

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.