High Court lands dodgy construction company director a 13 year ban for misappropriating company funds
Marc John McKibbin, a director W.A. Construction Management Ltd and Warwick Avenue Ltd, has been disqualified for 13 years by the High Court on 9 July for misappropriating company funds to the tune of £830,534.
Mr McKibbin’s disqualification follows an investigation by the Insolvency Service And prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company 13 years from 30 July 2014.
Commenting on the disqualification, Sue Macleod, Chief Investigator at The Insolvency Service, said:
Directors occupy a position in which they are expected to safeguard and act in the best financial interests of a company. Company assets should be handled in an appropriate manner. Directors who abuse their position will find themselves investigated by the Insolvency Service and could face a lengthy ban.
The investigation found that between 26 April 2009 and 26 September 2011, Marc John McKibbin misappropriated monies totalling £830,534 from W.A. Construction Management Ltd (WACM) and Warwick Avenue Ltd (WAL) of which at least £498,317 was to Mr McKibbin’s benefit, in that:
- Between 26 April 2009 and 19 September 2011 35 payments totalling £327,596 were paid to a third party (“party A”). According to WACM and WAL’s accounting records, no goods or services were provided by this party. Party A has stated they passed 85% of this to another third party, who in turn retained 15% prior to passing the remaining 70% to Mr McKibbin.
- Between 8 December 2009 and 26 September 2011 payments totalling £401,641 were made to a third party (“party B”). According to WACM and WAL accounting records, no goods or services were provided by this party. Party B has stated they provided services as a provision for cash facility and of these monies received, at least £269,000 was paid to Mr McKibbin as cash.
- Between 19 May 2009 and 26 July 2011 at least 20 payments totalling £101,297 were paid to a third party (party C). According to WACM and WAL accounting records, no goods or services were provided by this party.
- 3 key employees of WACM/WAL state they were not aware of any commercial dealings between the companies and party A,B or C.
The court also ordered Mr McKibbin to pay costs of £3, 894.93.
Notes to Editors
W.A Construction Management Ltd was incorporated on 9 September 1993. It traded as building installation. Warwick Avenue was incorporated on 12 January 2000 developing and selling real estate. Both traded from 15 Bell Yard Mews, Bermondsey St, London SE1 3TY.
Mr McKibbin was appointed joint director of W.A. Construction Management from 1 May 2005 and joint director of Warwick Avenue Ltd from 7 August 2007. He resigned from both companies on 25 November 2011
The companies went into Administration on 16 December 2011.
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;
- act as an insolvency practitioner; or
- be a receiver of a company’s property.
In addition, many other restrictions are placed on disqualified directors by other regulations.
Further information on director disqualifications and restrictions can be found at: https://www.gov.uk/government/collections/information-about-company-director-disqualification
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 from:
Media enquiries only should be directed to: Kathryn Montague, Media & Campaigns Manager on 0207 674 6910 or Ade Daramy, Media Manager on 0207 596 6187.
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Published: 19 August 2014
From: The Insolvency Service