WIREDGOV

Director of SAS Fire & Security Systems Limited fined for contempt of court

News Release issued by the COI News Distribution Service on 15 July 2011

John Stuart Davies, a former director of SAS Fire & Security Systems Limited ('SAS Fire') in Stockport - the fire alarm sales company wound up in the public interest on 25 March 2011 following an investigation by Company Investigations of The Insolvency Service - has been fined £10,000 on 11 July 2011 for contempt of court for making a false witness statement.

During court proceedings to wind up 'SAS Fire', Mr Davies gave undertakings and made assurances to the court that the sales activities of the company would continue in a manner acceptable to the court.

In his witness statements, Mr Davies claimed that 'SAS Fire' was continuing to trade and make sales subject to those undertakings. A subsequent investigation into Homeguard Fire & Security Ltd ("Homeguard"), Central Intelligence Security Solutions Ltd ("CIS Solutions") and Skynet Security Systems Ltd ("Skynet") found that, during the period in which Mr Davies made his witness statements, 'SAS Fire' had ceased making new sales and had sold most of its assets to 'Homeguard' 'CIS Solutions' and 'Skynet'. 'SAS Fire' had enabled those companies to continue the sales operations of 'SAS Fire' using the same objectionable sales tactics that the Secretary of State had complained about in respect of 'SAS Fire'. In doing so, these companies evaded the undertakings provided to the court by 'SAS Fire' and its officers.

'Homeguard', 'CIS Solutions' and 'Skynet' were all wound up in May/June 2011 on the grounds that they had acted against the public interest.

Robert Burns, Head of Investigation and Enforcement at The Insolvency Service, said:

"The Insolvency Service will take firm action in circumstances where false statements have been made to the court during proceedings we have brought in order to protect the public or the business community."

Notes to editors

1. The matter was heard by HH Judge Pelling QC on 11 July 2011. The judge found that Mr Davies had made a false witness statement; that the statement had materially interfered with the course of justice; and that Mr Davies did not have an 'honest belief in the truth of his statement' and knew that it was likely to interfere with the course of justice.

2. SAS Fire & Security Systems Ltd was incorporated in August 2007. Its registered office and principal trading address was at Windsor House, Battersea Road, Heaton Mersey Industrial Estate, Stockport, Cheshire SK4 3EA. It was wound up on 25 March 2011. For more information on the winding up of SAS Fire & Security Systems Limited please link to press release: http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=95&NewsAreaId=2&ReleaseID=419920&SubjectId=36

3. Skynet Security Systems Ltd was incorporated in November 2010. Its registered office was at 28 Araburn Drive, East Kilbride, Glasgow G75 8FE. It was wound up on 18 May 2011.

4. Homeguard Fire & Security Ltd was incorporated in November 2010. Its registered office and principal trading address was at Estate House, 18 Fox Street, Preston PR1 2AB. It was wound up on 6 June 2011.

5. Central Intelligence Security Solutions Ltd was incorporated in November 2010. Its registered office was at 18 Cunard Court, Brightwen Grove, Stanmore, Middlesex HA7 4WY. It was wound up on 6 June 2011.

6. 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.insolvency.gov.uk

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

8. Media Enquiries should be directed to: Ade Daramy, Press Officer on 020 7596 6187

Notes to Editors

Contacts:

NDS Enquiries
Phone: For enquiries please contact the issuing dept
ndsenquiries@coi.gsi.gov.uk

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