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Director disqualified for 15 years for property scam

21 December 2011 10:10

Insolvency Service

A director of Maple Grow Limited, Mahmood Anwar Yaqub, has been disqualified from being a company director or in any way managing or controlling a limited company by Birmingham County Court for 15 years, following an investigation by the Insolvency Service.

The investigation found that Mr Yaqub, 48, and other directors of the company obtained mortgage advances of almost £1.8m on six properties which they knew were worth less than £1m.

They had previously purchased the properties for around £960,000 before selling them to their own company. The properties have subsequently been sold for less than £600,000. Maple Grow Limited went into Administration on 26 March 2009 with liabilities of around £3.5m.

Mr Yaqub’s disqualification came into effect on 14 December. Four other directors of Maple Grow Limited have already offered disqualification undertakings totalling 32 years to the Secretary of State (see notes 5 and 6).

Commenting on the disqualifications, Claire Entwistle, Director of Company Investigations North said:

“The order given by Birmingham County Court in respect of Mahmood Anwar Yaqub sends a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you will be investigated by the Insolvency Service and removed from the business environment.”

Ends

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Notes to Editors

1. Maple Grow Limited was incorporated on 13 October 2006 and was based in Birmingham.

2. Between 19 December 2007 and 29 January 2008, three of the five directors obtained mortgage valuations in the total sum of £2,590,000 in respect of 6 properties. On 28 February 2008, these 3 directors obtained advances in the total sum of £1,767,500 from Yorkshire Bank in respect of these 6 properties. Mr Yaqub knew that these properties had a combined value of around £962,232, the properties having previously been purchased by Mr Yaqub and/or his associates from independent third parties between 19 December 2007 and 28 February 2008.

3. Post-Administration, 5 of the properties have been sold realising a total of £532,000, with the value of the 6th property being £45,000.

4. On 14 December 2011 Mahmood Anwar Yaqub was disqualified from being a director of a limited company for a period of 15 years by Birmingham County Court. The disqualification will commence on 04 January 2011. Mr Yaqub was also ordered to pay the Secretary of States costs in full.

5. The other two directors in this matter were Muhammed Usman Mughal and Mohsin Afsar. On 19 January 2011, Mr Mughal signed a Director Disqualification Undertaking banning him from being a director of a company for a period of 14 years. The Undertaking was accepted by the Secretary of State on 21 January 2011, with the disqualification commencing on 11 February 2011. On 24 May 2011, Mr Afsar signed a Director Disqualification Undertaking banning him from being a director of a company for a period of 12 years. The Undertaking was accepted by the Secretary of State on 26 May 2011, with the disqualification commencing on 16 June 2011.

6. The other two directors of Maple Grow Ltd were Ravinder Bhardwaj and Raj Sidhu. Both Mr Bhardwaj and Mr Sidhu signed a Director Disqualification Undertaking banning them from being directors of a company as they had failed to maintain, and/or preserve adequate accounting records for Maple Grow Ltd, or alternatively that they failed to ensure that such records were delivered up to the Administrator. Mr Bhardwaj signed his Disqualification Undertaking, banning him from being a company director for a period of 3 years, on 08 December 2011. The Undertaking was accepted by the Secretary of State on 09 December 2011, with the disqualification commencing on 30 December 2011. Mr Sidhu signed his Disqualification Undertaking, banning him from being a company director for a period of 3 years, on 15 August 2011. The Undertaking was accepted by the Secretary of State on 22 August 2011, with the disqualification commencing on 12 September 2011.

7. Disqualification undertakings were introduced in April 2001, they are an administrative equivalent of a disqualification order but do not involve court proceedings. Without specific permission of a court, a person with a Company Director Disqualification, including Undertakings, cannot:-

act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.

Further information on director disqualifications and restrictions can be found at http://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm

8. 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 http://www.bis.gov.uk/insolvency

9. Media enquiries should be directed to: -

Kathryn Montague, Media Relations Manager 020 7637 or Ade Daramy, Press Officer 020 7596 6187

Ins/Coms/213

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