Irvin John Downey, 37, was a director of Tubular Scaffolding Limited which was placed into compulsory liquidation in 2014 owing creditors £506,937.

At a hearing in Hamilton Sheriff Court, the Sheriff made a 12 year order against Downey, which disqualifies him from being a company director from 11 August.

The effect of the order is that Downey cannot, except with permission of the court, be the director of a company or take part in the promotion, formation or management of a limited company.

An investigation found that Downey, the sole director and shareholder of the Tubular Scaffolding Limited from 1 August 2012, used the company, which was originally incorporated in 1932 and had an excellent credit rating, as a vehicle to commit a fraud against suppliers.

Downey accomplished the fraud through the submission of false and inaccurate information within loan and credit applications to unsuspecting suppliers in the knowledge that the company’s established credit history would result in the applications not being subjected to scrutiny.

Downey’s fraudulent actions during a four month period resulted in a loss to suppliers of £264,497.

Robert Clarke, Head of Company Investigation at the Insolvency Service said: “The disqualification of Mr Downey sends out a clear message that where a corporate vehicle is being used to facilitate actual or potential fraudulent activity action will be taken to remove the directors from the business environment for a lengthy period of time.”

The scaffold trade body NASC strictly regulates the sector and has more than 200 members who are regularly vetted,

A spokesman said: “Our 200+ contracting members and scaffolding equipment suppliers are strictly audited – ensuring the highest possible standards are met, confirming to NASC Criteria, Code of Conduct and the Code of Practice.

“The continued high standard of our members is recognised by construction industry main contractors – who continue to stipulate NASC-only companies for scaffolding and access solutions.”