WINDOW FITTER BEHIND BARS AFTER DTI PROSECUTION

9 Sep 2004 12:15 PM

A twice-bankrupt conservatory and window fitter who left elderly and disabled clients out of pocket has been sent to prison for nine months following a DTI prosecution.

Norwich Crown Court heard that Paul Ian Southey, of Station Road, North Belton, Great Yarmouth went bankrupt for the second time in April 2002 owing creditors around 150,000.

Shortly before his bankruptcy, Southey withdrew 33,592 from his bank. When asked by the Official Receiver what had happened to this money, he failed to give a satisfactory account. He also failed to reveal a bank account with a balance of 1,359 at the date of his bankruptcy, which should have been handed over to the Official Receiver for distribution to his creditors.

In the period after his bankruptcy Southey traded as First Class Home Improvements Ltd, fitting windows and conservatories. Despite its name, the company was not limited but a sole trader business.

Southey failed to disclose his bankruptcy to his clients, and in June and July 2002 took 3,000 from an elderly client to build a conservatory with wheelchair access. The job was not completed and the client had to employ a separate contractor to finish the job.

Southey subsequently traded as Premier Plastics and Home Improvements, again in the window and conservatory business. In April 2003 he took a 600 deposit from a client for replacement windows, but again failed to fit the windows or return the deposit.

In passing sentence, His Honour Judge Downs gave Southey credit for his early guilty pleas but said that as a second time bankrupt, he should have known what he could and could not do.

He stated that the purpose of insolvency was to protect vulnerable people and that those who abuse this process should have their operations curtailed.

Southey was sentenced to a total of nine months in prison, having previously pleaded guilty to one count of failing to disclose a bankrupt's property, one count of failing to explain the substantial loss of a bankrupt's property and two counts of trading without disclosing the name in which he was adjudged bankrupt.

Notes to Editors

1. Mr Southey was made bankrupt on his own petition on 2 April 2002 at Norwich County Court.

2. The bankruptcy was dealt with by the Official Receiver at Norwich.

3. He pleaded guilty to the four offences on 4 August 2004.

4. The offences he pleaded guilty to were contrary to section 353 (1)(a) of the Insolvency Act 1986 (count 1), one contrary to section 354 (3) of the Insolvency Act 1986 (count 5) and two contrary to one contrary to section 360 (1)(b) of the Insolvency Act 1986 (counts 4 and 6).

5. Counts 1 and 2 in respect of a bankrupt failing to maintain and preserve accounting records were not proceeded with.

6. Mr Southey was sentenced on 6 September 2004 to 9 months imprisonment on counts 4 and 6 and 4 months on counts 3 and 5 to be served concurrently.

7. The Insolvency Service is an executive agency of the Department of Trade and Industry. Its official receivers have responsibility for the administration and investigation of bankruptcies and companies that are put into liquidation by Order of the Court. Insolvency practitioners deal with the administration of companies that are put into Creditors' Voluntary Liquidation.

8. Where Official Receivers discover conduct by bankrupts that might constitute a criminal offence, the matters are reported to the Department of Trade and Industry Legal Services (Prosecution) branch with a view to the investigation and prosecution of any offences, where appropriate.

For further information about the Insolvency Service and disqualification see: www.insolvency.gov.uk

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