An investigation by the Insolvency Service’s Public Interest Unit found Mr Jordan to have caused Henderson & Forbes Limited to misrepresent itself to investors in the sale of fancy coloured diamonds. These misrepresentations led to investments totaling in excess of £1.5 million generating gross profits in excess of £1.3 million.
Henderson & Forbes Ltd went into liquidation on 11 August 2014. The investigation began as a result of a return by the liquidator Darren Edwards of Aspect Plus Limited.
The investigation found that Mr Jordan was the sole director of Henderson & Forbes Ltd, a company which sold diamonds to investors between 23 October 2013 and 11 August 2014.
Investors were informed that the diamonds would increase in value by between 8 and 50% per year. In reality the company marked up the diamonds by between 463% and 1333% meaning the diamonds were worth considerably less than the price investors were paying.
Henderson and Forbes Ltd’s customers have lost in excess of £1.5million whilst Henderson and Forbes Ltd made a gross profit of at least £1,360,808.
Mr Jordan has failed to maintain and/or preserve adequate accounting records covering the period of trade, 23 October 2013 to 11 August 2014.
Analysis of the company bank account shows over £400,000 being paid to a third party. Mr Jordan has provided no explanation for these payments.
Mr Jordan has provided a disqualification undertaking for a period of 14 years commencing on 11 November 2016.
Anthony Hannon, the Official Receiver in the Public Interest Unit, said:
The period of disqualification sends a clear message that misrepresentation to investors will not be tolerated. The fact investors have lost over £1.5 million makes this an even more serious case.
Directors who do not maintain and preserve their company’s books and records adequately will be investigated by the Insolvency Service.
The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors who act in this way.
Notes to editors
Mr Joseph John Jordan is of Woodford Green, London and his date of birth is September 1992.
Henderson & Forbes Ltd (Company Reg no. 08744504) entered Creditors Voluntary Liquidation on 11 August 2014.
The liquidator is Darren Edwards of Aspect Plus Ltd 40a Station Road, Upminster, Essex, RM14 2TR.
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
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Persons subject to a disqualification order are bound by a range of other restrictions.
The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.
BEIS’ mission is to build a dynamic and competitive UK economy that works for all, 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.
The agency also authorises and regulates the insolvency profession, 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.
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