Dodgy director punished
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Paul Mulholland of Kings Bromley, Staffordshire, stole £121,425 from BI Industries (Holdings) Ltd where he was sole director. The money was…
Paul Mulholland of Kings Bromley, Staffordshire, stole £121,425 from BI Industries (Holdings) Ltd where he was sole director. The money was paid to BI Industries by the European Commission to coordinate a research project to develop an alternative thickening agent to gelatine.
Mulholland instructed the company’s bank to transfer the money to another company account, held by Shobwood Engineering, of which he was also a sole director. Both companies went into liquidation. The monies were not recovered.
Mr Mulholland also pleaded guilty to eight counts of fraudulently removing funds from Elson Industries Ltd where he was, again, sole director. The charges represent removals, totalling £931,157, made by Mulholland prior to the company going into liquidation with debts of £234,297.
On passing sentence at Wolverhampton Crown Court, Recorder John Steel QC said that Mr Mulholland had breached the trust of banks, the EU and their research and development partners, and the HMRC. He also said that the defendant’s conduct involved self-enrichment and the “detection of these matters prevented the denting of public confidence in the business community.” The judge said that he had no alternative but to impose an immediate custodial sentence.
Notes for editors
- Paul Mulholland was found guilty on 9 July 2010 of the following charges at Wolverhampton Crown Court:
(a) One charge of theft contrary to section 1 Theft Act 1968.**
(b) Eight charges of fraudulently removing funds from Elson Industries Limited, contrary to section 206(1)(b) and (6) Insolvency Act 1986. The amounts were:
(1) 12 Oct 2004 - £295,000
(2) 28 Oct 2004 - £50,000
(3) 4 Feb 2005 - £3,750
(4) 7 Feb 2005 - £3,500
(5) 24 Mar 2005 - £45,000
(6) 27 Apr 2005 - £463,520.94
(7) 29 Apr 2005 - £50,387
(8) 17 May 2005 - £20,000
- Mr Mulholland was sentenced on 13 September 2010.
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Published: 13 September 2010