Press release

IT Company directors disqualified for ‘downloading’ company funds to their personal accounts

The two directors of IT consultancy Insight Computing Ltd have been disqualified as company directors having left a large tax bill unpaid despite transferring nearly £1 million out of the company to their personal bank account.

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Russell Bloore and Karen Bloore, Insight’s directors who now reside in France, were disqualified for five and three years respectively. The Insolvency Service investigation following the firm’s liquidation found that the company owed HMRC at least £275,243, during which time Russell Bloore personally benefitted from at least £889,784 of the company’s funds.

Insight began trading in March 2002, providing IT integration services and business process technology to large corporate organizations, predominantly in the banking sector. Although its turnover reached the VAT threshold in February 2004, Russell Bloore failed to register it for VAT and submit returns until May 2012 shortly before the firm went into liquidation. He also failed to submit any corporation tax returns until May 2012.

Andrew Stanley, Official Receiver at Medway, said:

By not paying the correct tax, the director has short-changed the public purse by over a quarter of a million pounds and this is totally unacceptable. These directors abrogated their responsibilities and it should be no surprise they have been removed from the business environment.

The disqualifications, from 11 and 10 September 2015 respectively, prevent Russell and Karen Bloore from directly or indirectly becoming involved in the promotion, formation or management of a company for the duration of the term.

During the period 1 September 2004 to 5 November 2012, Insights bank account received income of £920,960; £889,784 of this was transferred directly to Mr Bloore’s personal bank account.

Notes to editors

Insight Computing Ltd (CRO No. 04386872) was incorporated on 5 March 2002 and traded from Mr Bloore’s home address in Solihull and then from 2009 in France, providing IT integration and business process technology. It was subject to a winding up order on 21 January 2013 with a deficiency of £310,252.

On 21 August 2015, the Secretary of State for Business, Innovation and Skills accepted a Disqualification Undertaking from Russell Charles Bloore, effective from 11 September 2015, for a period of 5 years.

The matters of unfitness, which Mr Bloore did not dispute in the Disqualification Undertaking, were that between 1 September 2004 and 21 January 2013 causing Insight Computing Limited to trade to the detriment of HMRC by:

  • Failing to register Insight for Value Added Tax when the sales threshold was reached in February 2004 and failing to submit VAT returns for the period June 2004 to March 2010 until May 2012 resulting in lost revenue to HMRC of £103,996;
  • Failing to submit any Corporation Tax returns until May 2012 resulting in a debt of £171,247;
  • Failing to ensure sufficient moneys were retained to meet VAT and Corporation Tax obligations resulting in HMRC being owed at least £275,243 excluding interest and penalties in the liquidation.

Analysis of the bank statements showed that between 1 September 2004, to the account being closed on 5 November 2012, £920,959.94 was received and £921,030.01 taken from Insight’s bank account;

Of the total sum expended, £889,783.54 was received by Russell Bloore whilst HMRC received no payments at all for the whole of Insight’s trading.

On 20 August 2015, the Secretary of State for Business, Innovation and Skills accepted a Disqualification Undertaking from Karen Jane Bloore, effective from 10 September 2015, for a period of 3 years. The matters of unfitness, which Mrs Bloore did not dispute in the Disqualification Undertaking, were that:  She abrogated her duties between 1 September 2004 and 1 March 2012 as a director of Insight Computing Limited, allowing it to trade to the detriment of HMRC by;

I. Failing to register Insight for Valued Added Tax (“VAT”) when the sales threshold was reached in February 2004 and failing to submit VAT returns for the period June 2004 to March 2010 resulting in lost revenue to HMRC of £103,996; II. Failing to submit any Corporation Tax returns resulting in a debt of £171,247; III. Failing to ensure sufficient moneys were retained to meet VAT and Corporation Tax obligations resulting in HMRC being owed at least £275,243 excluding interest and penalties in the liquidation; IV. Transferring at least £889,783.54 of the £920,959.94 received into the co-director’s bank account whilst no payments were made to HMRC.

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

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 can be found here

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Published 8 September 2015