James Patrick Lloyd’s conviction follows an initial investigation by The Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation and Skills.

Lloyd was the sole director of electrical and heating specialist Quality Building Developments Limited based in Ilford, Essex.

He pleaded guilty at Snaresbrook Crown Court to failing to preserve books and records, including failure to explain withdrawals of over £1.1m from the company .

Quality Building was wound up on 23 September 2009 on the petition of HM Revenue and Customs (HMRC) leaving trade and tax debts totalling £269,612.

Lloyd provided the Official Receiver, the company liquidator with five boxes of books and records but these failed to include:

• Any Construction Industry Scheme records;
• Any details of what wages were paid to subcontractors; and
• Any records at all to cover the three years between March 2004, when the company was incorporated, and April 2007.

Deputy Chief Investigation Officer Ian West from the Department for Business Innovation and Skills said: “Company Directors should take note that it is a criminal offence to fail to keep adequate accounting records and be in no doubt that the Department of Business will prosecute those that ignore this warning.”