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Director Disqualified Following cash queries

21 December 2011 10:00

Insolvency Service

The director of DMR Assets Limited, a property management business in Coatbridge, North Lanarkshire, has been disqualified from acting as a company director by Airdrie Sheriff’s Court for seven years following an investigation by The Insolvency Service.

Mr Mario Rea was disqualified on 5 December 2011 for failing to explain the source of receipts totalling £578,406.06 paid into the company bank account between October 2007 and August 2008. He also failed to explain the purpose of sums totalling £637,868.50 withdrawn from the company bank account between November 2007 and December 2008. In addition, he failed to explain the purpose of sums totalling £138,641.81 withdrawn from the Company Solicitors Client Account between July 2008 and January 2009

A spokesperson for The Insolvency Service said:

“The Insolvency Service carries out a range of investigation and enforcement activities aimed at supporting fair and open markets and, where necessary, taking steps to remove from those markets individuals whose conduct is not in the public interest.

Mr Rea’s disqualification takes effect on 26 December 2011. The disqualification means he will be banned from acting as a company director, or in any way controlling a company, until 26th December 2018. If he breaches the undertaking he may be prosecuted”

Ends

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Notes to Editors

1. Mr Mario Rea’s address is: Grahamshill House, 7 Forrest Street, Airdrie, Lanarkshire ML6 7BA.

2. Mr Rea’s disqualification proceedings were conducted under Section 6(1) of the Company Directors Disqualification Act 1986.

3. The company entered into administration on 30 January 2009 with unsecured liabilities of £449,074 and a further £2,842,852 owed to a secured creditor.

4. Allegations:

In the absence of the company books and records and a response from Mario Rea to the enquiries made on him by Company Investigation, Edinburgh, it has not been possible to verify whether or not the receipts into and the payments out of the company bank account and company client account held by a solicitor were bona fide company transactions for the benefit of the company, or to the detriment of the company’s creditors, specifically it has not been possible to explain:

· The source of receipts totalling £578,406.06 paid into the company bank account between 24 October 2007 and 27 August 2008, and whether or not they were bona fide company transactions;

· The withdrawal of cheque payments totalling £383,937.40 paid out of the company bank account between 6 November 2007 and 16 September 2008, and whether or not they were bona fide company transactions;

· The purpose of Direct Debit payments totalling £31,317.42 from the company bank account between 8 November 2007 and 2 September 2008, and whether or not they were bona fide company transactions;

· The purpose of Telephone Banking withdrawals totalling £18,160 paid out of the company bank account between 11 June 2008 and 10 September 2008, and whether or not they were bona fide company transactions;

· The purpose of other withdrawals totalling £214,452.89 paid out of the company bank account between 12 November 2007 and 13 December 2008, and whether or not they were bona fide company transactions;

· The purpose of payments totalling £34,921.87 made into the Company Solicitors Client Account between 25 January 2008 and 30 June 2008, and whether or not they were bona fide company transactions;

· The withdrawal of payments totalling £138,641.81 made out of the Company Solicitors Client Account between 7 July 2008 and 12 January 2009, and whether or not they were bona fide company transactions.

In the absence of an explanation, it cannot be verified whether the above transactions were to the detriment of the company’s creditors, who at January 2009 were owed the total sum of £3,291,926, representing liabilities that began accruing from September 2007.

5. 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. The Service also 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 is available from www.bis.gov.uk/insolvency

6. BIS’ mission is to build a Dynamic and Competitive UK economy, 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. We investigate and prosecute a range of offences, primarily relating to personal or company insolvencies. The Disqualification Investigation Team in Edinburgh contributes to this work by investigating reports about the conduct of directors which have been submitted to the Secretary of State by Insolvency Practitioners appointed to act in the liquidation or administration of companies. Further information about the work of the Criminal Investigations and Prosecutions team is available at http://www.bis.gov.uk/policies/business-law/criminal-investigations

7. Media Enquiries should be directed to:

Ade Daramy, Press Officer on 020 7596 6187

Ins/Coms/211

Contact Information

Ade Daramy
Name
Ade Daramy
Job Title
Mr
Division
Insolvency Service
Phone
020 7596 6187
Fax
Mobile
Email
ade.daramy@insolvency.gsi.gov.uk