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