A probe by the insolvency service found that Nicholas Richard Parkin had been running the company better known as Phoenix Howden while still a declared bankrupt.
While the company was under Parkin’s control, he spent money on luxury goods unrelated to the company’s business and he failed to properly account for significant amounts of money out of the company’s accounts.
Parkin also failed to disclose significant assets belonging to Phoenix Howden at the time it went into liquidation.
Denise Brown, The Official Receiver said: “The length of Mr Parkin’s disqualifications sends a clear message that breaching bankruptcy rules is a serious matter and that those who do so and deliberately set out to hide assets can expect to be dealt with harshly.”
Due to his failure to cooperate with the Official Receiver, Parkin’s discharge was suspended indefinitely. He thus remains an undischarged bankrupt.
Parkin admitted that he acted as a director and took part in the management of the company between 2007 and 2008 before being formally appointed as a director in the latter part of 2008.
As an undischarged bankrupt, Parkin knew that he should not have had any such involvement with a limited company.
He admitted as director he allowed Pheonix Howden to enter into transactions totalling almost £55,000 that had nothing to do with the company’s business.
The money was used to purchase jet-skis and equipment, off-road motorcycles and jewellery;
He also failed to ensure that the company kept proper accounting records.
As a result, the Official Receiver has not been able to determine what happened to over £63,000, which was transferred out of the company’s accounts while it was under his control.
He also allowed five motor vehicles to be transferred from Phoenix Howden to a connected company at the time it went into liquidation, without disclosing what were significant assets.