Midlands based company wound up for operating as vehicle for a £1.56m fraud
Birmingham based AMA Tradings Limited (AMA) was wound up in the public interest on Tuesday 13 January 2015 at Manchester High Court, for operating as a vehicle for fraud.
The petition to wind-up the company was presented by the Secretary of State for Business, Innovation & Skills and followed an investigation by the Insolvency Service Investigations showed that AMA was initially incorporated as AMA Electronics Limited in June 2012 and remained dormant until purchased by its current director in March 2014, and the name changed to AMA and a set of false accounts for the previous year were filed giving a vastly inflated picture of AMA’s finances, including that it had combined profits of £1.6m.
The company then made a number of attempts to obtain goods on credit, including a BMW motor vehicle on finance.
In reality, AMA’s bank account showed that there had only been £1,000 through the account.
Investigators also found that a major waste management company had received an email, purportedly from a supplier and advising of a change to their bank details. The new account details were those of AMA’s bank account and resulted, on 15 October 2014, in the fraudulent diversion of £1.562m into the account. Before the fraud was uncovered, an amount of £594,398 was then electronically transferred out in a series of 119 transactions conducted on the same day.
The winding up petition was not defended by the company.
Commenting on the case, Scott Crighton, Group Leader with Companies Investigations North, part of the Insolvency Service, said:
This company operated with complete disregard for the rules of legitimate business.
During its life, the company provided no services to justify its existence and appears to have been used as nothing more than a means of perpetrating fraud. Those responsible for such companies should be aware that the Insolvency Service can and will come after them with all the resources at its disposal.
Notes to editors
AMA Tradings Ltd (CRO No. 08121549) was incorporated on 27 June 2012 and was ordered into compulsory liquidation on 13 January 2015. The petition to wind AMA up was issued on 27 November 2014.
The company was based at 52 Blucher Street, Birmingham.
Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS).
Further information about live company investigations is available.
All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: email@example.com.
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.
Published: 30 January 2015
From: The Insolvency Service