Insolvency Service
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Leamington Spa online recruitment companies now offline
Four Leamington Spa-based recruitment companies, Online Recruiter Ltd, Financial Times Accounts Ltd, First Star Recruitment Limited and Working Solutions Websites Direct Limited, have been ordered into liquidation in the High Court on grounds of public interest following an investigation by Company Investigations of The Insolvency Service.
Online Recruiter Ltd operated a website www.onlinerecruiter.org.uk , billing its services as “Recruitment The Right Way” on which it placed advertisements from organisations which it had made contact with, typically public sector bodies in the healthcare or education field.
Online Recruiter Ltd targeted advertisers who had recently placed an advertisement for a job vacancy with a legitimate recruitment publication unconnected with Online Recruiter Ltd. The company purported to be from the legitimate publication and asked the advertisers to check a proof advertisement replicating the genuine advertised vacancy. The recruiter was then asked to return a faxed order form urgently to ensure that the job advertisement was placed.
Following receipt of the order form, an invoice was sent out by Online Recruiter Ltd to the contact requesting payment to a company called Financial Times Accounts Ltd (a company unrelated to the national newspaper the Financial Times).
Financial Times Accounts Ltd, Online Recruiter Ltd , First Star Recruitment Limited and Working Solutions Websites Direct Limited were all connected companies.
The trading practices employed by these companies gave the impression that the targeted companies were being contacted in relation to the legitimate advertisement they had already placed and this order was a continuation of that operated by at least four other connected companies which have been wound up on grounds of public interest: Internet Recruitment Limited, Working Solutions Direct Ltd, Online Staffing Limited and Recruitment Web Solutions Limited (needs rewriting!).
Welcoming today’s court judgment Chris Mayhew, Company Investigations Supervisor said:
“Our message to those who operate such companies is quite clear; we will investigate and close you down”.
Ends
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Notes to Editors
1. Online Recruiter Ltd was incorporated on 1 November 2011. The registered office of the company is at Kemp House, 152-160 City Road, London, EC1V 2NX. The sole recorded director of the company is James Edward Peter Epplestone. The company has no recorded secretary.
2. Financial Times Accounts Ltd was incorporated on 23 February 2011. The registered office of the company is at Forfton House, Napton Road, Stockton, Southam, CV47 8LA. The sole recorded director of the company is Jamie Edward Peter Epplestone. The company has no recorded secretary.
3. First Star Recruitment Limited was incorporated on 11 January 2012. The registered office of the company is at 9 Nursery Lane, Leamington Spa, Warwickshire, CV31 2PW. The sole recorded director of the company is Sharon Elizabeth Watkins (believed to be Mrs Sharon Downes). The company has no recorded secretary.
4. Working Solutions Websites Direct Limited was incorporated on 1 November 2010. The registered office of the company is at Forfton House, Napton Road, Stockton, Warwickshire, CV47 8LA. The sole recorded director of the company is Jamie Edward Peter Epplestone. The company has no recorded secretary.
5. The petitions to wind up the companies were presented in the High Court on 25 January 2012 under the provisions of section 124A of the Insolvency Act 1986. On the application of the Secretary of State the Official Receiver was appointed as provisional liquidator of the companies on 26 January 2012 – see news release “ Four more online staff recruitment companies taken offline” issued on 3 February 2012.
6. The petitions were presented following confidential enquiries carried out by Company investigations under section 447 of the Companies Act 1985, as amended.
7. The grounds in the petitions, all found by the Court, for winding up the companies were, in relation to Online Recruiter Ltd and Financial Times Accounts Ltd: false and misleading statements and objectionable trading practices; continuation of a method of trading which was contrary to the public interest and, for Online Recruiter Ltd only, failure to co-operate and failure to maintain, preserve and/or deliver up adequate accounting records. With regards to First Star Ltd and Working Solutions Websites Direct Limited: the grounds were that there was a risk of the companies being used to facilitate the continuation of trading contrary to the public interest.
8. In ordering the companies into liquidation on 16 May 2012 Ms Registrar Derrett said:
“I am satisfied,taking everything into account, to find that Online Recruiter Ltd and Financial Times Accounts Ltd simply continued the objectionable trading practices formerly operated by Internet Recruitment Limited, Working Solutions Direct Limited, Online Staffing Limited and Recruitment Web Solutions Limited. These companies have earlier been wound up on grounds of public interest having made false and misleading statements and carried on objectionable trading practices. The evidence clearly demonstrates how these companies operated and how they successfully obtained payment. As regards the second aspect, the failure to co-operate with the investigation and a failure to maintain and/or deliver up adequate accounting records, the evidence suggests more than a failure and that active steps were taken to deliberately hinder and obstruct the investigation and remove information. Turning to First Star Recruitment Limited and Working Solutions Websites Direct Limited, I accept there is a real risk that the business will be transferred and in the circumstances I make a winding up order against those two companies as well as against Online Recruiter Ltd and Financial Times Accounts Ltd on grounds of public interest”.
9. For winding up action against other such companies on grounds of public interest following investigation by Company Investigations see news release “ High Court orders further sham online recruitment companies into liquidation ” issued on 18 January 2012.
10. On 4 May 2012 seven people from Leamington Spa were charged with conspiracy to defraud by the Warwickshire Police in relation to the mis-selling of advertising – see news release:
11. Company Investigations, part of the Insolvency Service, carries out confidential enquiries on behalf of the Secretary of State for Business, Innovation & Skills (BIS).
12. 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
13. All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit , 2 nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN Telephone: 0161 234 8531 Email: piu.north@insolvency.gsi.gov.uk
14. Media Enquiries should be directed to:
Kathryn Montague, Media Relations Manager, Telephone 020 7674
6010 or Ade Daramy, Press Officer on 020 7596 6187.
Ins12/Coms/043
Contacts:
Ade Daramy
Phone: 020 7596 6187
ade.daramy@insolvency.gsi.gov.uk
