Paul Davison, a Leeds-based director of Docklands and City Lettings Limited in London, has been disqualified from acting as a company director for three years and six months for failing to exercise control of the company's business or protect client deposits.
Davidson's disqualification follows an investigation by the Insolvency Service.
Davison (49) gave an undertaking to the Secretary of State for Business, Innovation and Skills which disqualifies him from managing or in any way controlling a company or being a director until 24 June 2018.
In giving the undertaking Davison did not dispute that between 2 June 2011 and 13 May 2013 he failed to exercise sufficient control over the business of Docklands and City Lettings Limited with the result that the company failed to protect deposits received from tenants on behalf of landlords in accordance with the provisions of the Housing Act 2004.
Docklands and City Lettings Limited went into liquidation on 13 May 2013 with assets of £3,309, liabilities of £352,828 and a deficiency of £349,519.
Davison did not dispute that Docklands and City Lettings Limited did not deal with tenants' deposits in accordance with the Housing Act 2004, which requires deposits to be retained or insured via an approved scheme. Instead, the money was used for the benefit of the company. As a result 23 tenants and landlords have been exposed to losses of £40,456.
Commenting on the case, Robert Clarke, head of company investigations north at The Insolvency Service, said: The public should be assured that the Insolvency Service will seek to disqualify the directors of companies that do not obey the law and use other people's money for the benefit of the company.
*The original image used to accompany this story was erroneously displayed as the logo of City Docklands Estate Agency in London. We would like to make clear that this firm is in no way connected to the above story and would like to offer our sincere apologies for any inconvenience caused.
Comments
Didn't know this site was for Advertorials as a result of somebody committing fraud. We know it shouldn't happen but it does so there.
There is a column in each edition of "Private Eye" headed "Desperate Marketing". Perhaps payflop would like to be included
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