Article

Lengthy Bankruptcy restriction imposed for breaking the rules

News Release issued by the COI News Distribution Service on 11 March 2010

Kevin John Moseley

On 08 March 2010, Exeter County Court made a ten year Bankruptcy Restrictions Order against Mr Kevin John Moseley after he obtained deposits from a customer both before and after his bankruptcy to their unreasonable risk and failed to keep any accounting records of his business as a builder.

Under the terms of the Bankruptcy Restrictions Order Mr Moseley is restricted from acting as a company director without the permission of the court. He must also disclose his bankruptcy restriction when applying for credit of more than £500, and the name by which he was made bankrupt when seeking to do any business in a different name.
The order was made after the Court satisfied itself that the following circumstances of conduct were made out:

A. During the period 30 November 2008 to 5 January 2009, Mr Moseley obtained deposits for building work of £15,000 from a customer and then failed to supply services, which were wholly or partly paid for.

B. Mr Moseley on 5 January 2009 was adjudged bankrupt and between this date and 4 March 2009, obtained credit of £6,663 from a customer by accepting deposits for services to be undertaken at a future date without declaring that he was an un-discharged bankrupt.

C. For the period 1 April 2004 to 23 March 2009, Mr Moseley failed to maintain or
preserve any accounting records.

The events leading up to the Bankruptcy Restrictions Order can be summarised as: -

To view the table of events that accompay's this release, please follow the link below: http://nds.coi.gov.uk/ImageLibrary/detail.aspx?MediaDetailsID=1641

Mr Jon McGurk, Exeter Official Receiver, commented:

"The particularly serious aggravating factors in this case which have led to this lengthy period of restriction include:

a) The level of financial and personal suffering of his customers caused by Mr Moseley's actions .
b) The overwhelming nature of his insolvency prior to taking further monies from a third customer in December 2008.
c) The false statement given to the Official Receiver's office that he had ceased trading prior to obtaining deposits from a customer without disclosing his status as an undischarged bankrupt.
d) The continued failure to keep records after he was made aware of his statutory duty to submit accounts after the bankruptcy.
e) The repeat of similar behaviour from his first bankruptcy, in which there were serious complaints by his customers and a failure to keep adequate accounting records, leading to a formal warning being sent to him.

Notes to editors

1. The Bankruptcy Restriction Order was imposed in Exeter County Court on 08 March 2010 following inquiries by the Official Receiver’s Office, Exeter.

2. The Insolvency Service administers the insolvency regime and Official Receivers investigate all compulsory liquidations and individual insolvencies (bankruptcies) to establish why they became insolvent. The Service also authorizes 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.

3. All public enquiries concerning the affairs of the Mr Moseley should be directed to the Official Receiver Services, Exeter: 01392 889 650 or exeter.or@insolvency.gsi.gov.uk

4. Media Enquiries should be directed to: Ade Daramy, Press Officer or Lynne Nasti, Press Office Manager, Insolvency Service, 21 Bloomsbury Street, London, WC1B 3QW.

Contacts:

Insolvency Service
nds.insolvencyservice@coi.gsi.gov.uk

Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk

Lynne Nasti
Phone: 020 7674 6910
lynne.nasti@insolvency.gsi.gov.uk