Pair who ran Norwich garage banned from running companies
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Two men who owned a car repair garage in Norwich have been banned from running companies for a total of 25 years after they provided false documents to secure £176,000 of loans.
Adam Hughes, 43, and Andrew Wood, 49, both of Peterborough, were directors of Concorde Tyre & Exhaust Centres Ltd, with a garage off Hall Road in Norwich, among their businesses.
In disqualification hearings at the High Court, the court heard how, between 2011 and 2017 their company expanded to nine sites.
But this growth led to cash flow problems and administrators were appointed to undertake a pre-packaged sale of the business.
Administrators discovered a third party had petitioned the court to wind-up the company, while they had difficulties establishing who owned the company’s assets and who had secured loans against them.
The directors’ conduct was referred to the Insolvency Service where investigators found Mr Hughes provided false documents, including invoices, emails and bank statements, to secure more than £176,000 from an asset finance company.
Further enquiries also established that at least three times, he supplied false documents to secure finance against assets Concorde did not own.
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Mr Wood knew the company did not own the assets but allowed his business partner to secure finance under false pretences.
The court heard Mr Wood voluntary signed a 12-year disqualification a year earlier, while Mr Hughes did not engage with the Insolvency Service.
Judge Barber described him as having a ‘flippant attitude’ towards proceedings. Nobody appeared for or on behalf of him in the High Court.
Mr Wood’s ban was effective from September 23 last year, while Adam Hughes’ 13-year disqualification order was effective from August 10 this year.
The pair cannot become involved, without the permission of the court, in the promotion, formation or management of a company.
Mark Bruce, chief investigator for the Insolvency Service, said: "Directors securing funds against the assets their company legitimately owns is a perfectly acceptable practice.
"Adam Hughes, however, failed to act honestly while securing more than £176,000 and Andy Wood failed in his diligence."
The Norwich garage has ceased trading.