Ban for M&E recruitment boss caught diverting funds

Grant Prior 6 years ago
Share

The boss of a construction recruitment agency has been banned from running companies after diverting £60,000 from an insurance settlement into his personal bank account.

Dean Jacobs, 29 of Birmingham, was the sole director of L & H Construction Limited, a specialist recruitment company helping people in the mechanical and electrical industries find new work.

But after trading for a little over two and a half years, the business ran into difficulties and L & H Construction entered into administration on 4 January 2017 after HMRC presented a winding up petition for an outstanding tax bill.

Upon administration, L & H Construction owed creditors close to £800,000.

Insolvency practitioners were brought in to deal with the administration but Jacobs failed to cooperate with their investigations.

Administrators were then made aware that L & H Construction was awarded an insurance settlement and when asked where the money had gone, Jacobs could not provide any explanation of what he did with the funds.

Further investigations by the Insolvency Service found that despite being fully aware that L & H Construction had stopped trading and owed money to creditors, Jacobs diverted £60,000 from an insurance settlement straight into his personal bank account.

As a result the Secretary of State accepted a disqualification undertaking from Jacobs.

The ban became effective this week and he is now banned from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company for 10 years.

Susan MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said: “Dean Jacobs put his own interests ahead of the company’s creditors and the timing of the funds he took from the insurance settlement showed a cynical disregard to those creditors.

“Directors who put their own personal financial interest above those of creditors damage business confidence.

“We will take action against directors who do not take their duties seriously and abuse their position and they will therefore lose the privilege of limited liability trading.”

Latest news

BAM Nuttall fined £2.3million after worker drowned

Court hears how series of safety failures led to tragedy
8 hours ago

OCU buys Scottish civils contractor RJ McLeod

Deal takes multi-utility infrastructure specialist revenue to over £800m
17 hours ago

£220m plan to restore secret wartime tunnels approved

Tunnels under High Holborn to become cultural exhibition space
16 hours ago

Balfour wins design for £690m Skye transmission job

Main work contract for 137km power line to be awarded later this year
19 hours ago

Student and resi developer Fortis goes under

Cheshire based developer follows construction arm into liquidation
20 hours ago

Construction output falls for third month running

Heavy rain and strong winds blamed for sharp fall in activity in April
19 hours ago

Plan in for Leeds 27-storey block of flats

390 flats planned at former Morgan Sindall office site
20 hours ago

Firms readied for £1.5bn Parliament estate upkeep deal

Invitation to tender due to go out next month
1 day ago

Amey switches kit supplier

Deal with HSS was worth £24.5m a year to rental specialist
20 hours ago

Track workers scatter to avoid runaway rail trolley

Track trolley careers 1km towards work site
20 hours ago

Direct delivery model pays off as Murphy profit soars to £67m

Group operating margin jumps from 3% to 5% in record year
2 days ago

Ex-Galliard boss to lead Battersea next building phase

Don O’Sullivan joins as plans advance to start phase 3C of power station redevelopment
2 days ago

£100m Digbeth 33-storey flats job out to bid

483 flats will be delivered for Clarion housing association
2 days ago

Van Elle fined £233,000 after piling rig kills driver

Court hears how tragedy was caused by poorly maintained plant
2 days ago

Renew buys utilities contractor Excalon

Infrastructure giant expand into electricity transmission market with £26m deal
2 days ago

Planning for new homes plunges to record low

Home builders call for urgent action from incoming government
2 days ago

JTRE starts £400m 21-floor London tower scheme

Office block and 64 affordable homes to be built at 220 Blackfriars Road site
3 days ago

R G Carter construction profits up despite 24% revenue fall

Selective client choice help profit jump to £6m from £1m previously
3 days ago

Refurbs power London office work to record high

London Office Crane Survey office work starts exceed 4m sq ft for record third quarter
3 days ago

Knight Build owed money for work on UK’s poshest street

Contractor takes legal action over unpaid bills on new luxury flats complex
3 days ago

Winvic ranks top of May contracts league

Large residential scheme in Leeds caps strong haul of orders
3 days ago

Bid race starts for up £95m repairs to PFI hospital

Roseberry Park Hospital in Middlesbrough hit by serious defects
3 days ago

Building Safety changes slow down construction recovery

Confused market contains paradox of falling workload and contractors claiming they are too busy
3 days ago

Wates rejigs businesses as veteran leader retires

Wates Construction Group MD Paul Chandler to retire at end of year
6 days ago

Scaffolder dies from chemical burns

Tata Chemicals Europe fined £1.125m after death of Altrad scaffolder
6 days ago

M&E firms warn of persistent skills shortages

Shortage of adequately skilled workers blamed for slow growth
6 days ago

Southern Water names consultants for AMP8

Seven firms to share £240m in professional services spend
6 days ago

Construction buyers see momentum building

Contractors gearing-up for future growth as workloads and confidence rise
7 days ago

Bouygues bags £80m London NHS diagnostic centre job

New five-storey scanning facility to be built at West Middlesex University Hospital
7 days ago

London £3bn schools framework out to tender

SMEs allocated slots on London Construction Programme education framework refresh
7 days ago

Contractor services