Paul David Henstone, a former two-time bankrupt, has been sentenced to 16 months in prison by Warwick Crown Court for acting as a director while bankrupt and committing fraud by misusing an employee’s identity. (Insolvency Service)

09/12/2011 16:09

Insolvency Service

Cowboy builder sentenced to 16 months for identity fraud

Paul David Henstone, a former two-time bankrupt, has been sentenced to 16 months in prison by Warwick Crown Court for acting as a director while bankrupt and committing fraud by misusing an employee’s identity.

Mr Henstone has also been disqualified from acting as a company director, managing or in any way controlling a company, for five years, following an investigation by the Company Investigations team of The Insolvency Service and the Department for Business Innovation and Skills.

At the hearing, Mr Henstone pleaded guilty to one count of acting as a director whilst bankrupt and three counts of fraud by false representation.

The court heard that on 24 November 2005, Mr Henson registered a company called Blackdown Construction Ltd and became a director. He was made bankrupt for a second time on 11 December 2006.

At the time, Mr Henson was warned by the Official Receiver that he would be committing an offence if he carried on as a director, but he did not to resign.

The court also heard that, on 14 March 2008, Mr Henstone registered a new company, Roc Construction and Roofing Ltd (Roc). In order to hide his position with this new company as he had been a bankrupt and had also been the subject of much adverse media scrutiny, he arranged for one of his employees to be appointed as a director without the employee’s knowledge.

Mr Henson then opened three credit accounts with suppliers in this employee’s name and used them, pretending to be him. None of the suppliers were aware that they were dealing with Mr Henstone. All believed they were dealing with a new director with no history of insolvency. Mr Henstone even signed a personnel guarantee pretending to be this employee. Roc was wound up on 30 September 2008 with a deficiency of over £15,000.

Deputy Chief Investigation Officer Glen Wicks from the Department for Business Innovation and Skills said:-

“This man is a serial cowboy builder who for many years has created mayhem throughout the West Midlands and devastated the lives of many people.

People who commit these types of offences need to know that BIS, the Insolvency Service and the courts will crack down on them severely”.

Mr Recorder Hall sentencing Henstone at Warwick Crown Court said:

“I have to deter others like you to exposing members of the public to fraud such as this”.

Notes
1. Mr Paul David Henstone’s address was given as 4 Bankfiled Leamington Spa CV8 1BE. His date of birth is 11 June 1969. He was made bankrupt on 10 April 2000 and again on 11 December 2006. Both of these orders were made in the Warwick County Court.

2. In April 2007 he was prosecuted by Trading Standards for a number of offences. His second bankruptcy was discharged on 10 December 2007. On the same day a winding up petition was made against Blackdown and it was wound up on 28 Febuary 2008.

3. Offences:

* Acting as a director whilst prohibited, contrary to sections 11 and 13 of the Company Directors Disqualification Act 1986.

* Fraud by false representation, contrary to section 2 of the Fraud Act 2006.

* Fraud by false representation, contrary to section 2 of the Fraud Act 2006.

* Fraud by false representation, contrary to section 2 of the Fraud Act 2006.

© Crown Copyright 2010

Insolvency Service Director of Home improvement company sentenced

http://www.lease-a-finance-director.co.uk

03/06/2011 12:37

Insolvency Service

Director of Home improvement company sentenced

A bankrupt and former director of a home improvement company, Peter Stephen Matthews of Suffolk, was this week sentenced to 3 months imprisonment suspended for 12 months plus a Community Order with a requirement to complete 180 hours unpaid work, by Cambridge Crown Court following an investigation and prosecution by The Insolvency Service and the Department for Business, Innovation and Skills. He was also ordered to pay £5,000 in compensation.

Matthews, who is already subject to a five-year Bankruptcy Restrictions Undertaking, was sentenced after pleading guilty to the removal of property after an order or judgement for money had been obtained, which remained unsatisfied at the date of bankruptcy. Specifically, he spent money that should have been paid to his creditors, on a new car and on family holidays, among other things.
Mr Matthews was the director of Heathcroft Homes Improvements Ltd (‘Heathcroft’), through which he worked as a fitter.
The court heard that, upon the winding-up of Heathcroft in 2009, Mr Matthews became liable for the company’s debts as a result of personal guarantees he had given to trade creditors. However, despite being served with a court judgement relating to these debts, he failed to pay these creditors following the sale of his family home. Instead, he transferred the funds to his partner and the funds were never recovered.
The court heard that Matthews spent some of the funds on advance rent and general living expenses for his family.
The court was shown bank statements revealing that Mr Matthews bought a car for £5,500 and paid £3,000 for a holidays for various family members. The bank accounts also revealed numerous transactions between Matthews’ account and a new business, H I Solutions, owned by his partner, through which he continued to provide his services as a window fitter. Funds were not used to satisfy either Matthews’ trade or personal creditors.
As a consequence of his actions, Mr Matthews’ creditors have lost out to the tune of almost £24,000.
Commenting on the case, Stephen Speed, Chief Executive of The Insolvency Service said:
“People genuinely struggling with debt who want to benefit from the debt relief arrangements offered by the insolvency regime must be prepared to declare all of their assets or face the penalty imposed on them. It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor.”
Commenting on the case, Ian West, an investigator with the Department for Business, Innovation and Skills said:
“Mr Matthews’ sentence sends a clear message to bankrupts who fail to keep to the terms of their bankruptcy order. We can and will investigate bankrupts, and where appropriate, take action when we find evidence of them deliberately acting to the detriment of their creditors”.

© Crown Copyright 2010