Three Directors of a Finance firm have been banned for trading whilst insolvent. Their actions caused their company to take money from its clients and make payments to themselves despite the company being insolvent.
Independent Derivative Traders Ltd traded as Futex. They provided access to a financial markets trading platform for sub contracted independent traders in the UK.
The directors of the company were Paul Rossi, his brother Mark Rossi and Daniel Goldberg. The company was incorporated in 1995 but after 11 years of trading, the company became insolvent due to increased running costs and a highly competitive market.
It became apparent that the company was not able to meet its liabilities. The Directors were advised that all of the company’s creditors should be treated equally and it was their legal and moral obligation to look after its creditors interests.
Despite the professional advice and the company being technically insolvent, the company was paid two deposits from traders totalling £75,000. These were used in general trading whilst £79,000 was paid out of the company to Paul Rossi, another Director and an associated company. This was despite previous professional directions being given.
The company went into liquidation in November 2016 and the secretary of state has since accepted disqualifications for all 3 directors as a result of their actions. Paul Rossi was banned for 6 years, Mark Rossi for 8 years and Daniel Goldberg for 4 and a half years. These banning orders were issued in light of the various roles each played in allowing the company to take money from clients and making personal payments whilst the company was insolvent.
Goldberg’s ban originally started on 11th September 2018 whilst the Rossi Brothers disqualifications were effective from February 2019. The banned directors will not be allowed to be involved with the promotion, formation or management of any company as a result.
David Brooks, chief investigator at the Insolvency Service, said: ‘When the company became insolvent, the directors were specifically instructed not to do anything that was detrimental to creditors. However, they decided to completely disregard that advice, putting their creditors at risk.
‘These disqualifications should serve to further underline that such behaviour is unacceptable and we will seek disqualifications against those directors that do not uphold their duties.’
Independent Derivative Traders Ltd (company number: 03038982). Previous Customer Address: 6th Floor Harmsworth House, 13-15 Bouverie St, London EC4Y 8DP
Paul Rossi was born in December 1965 and lives in Poland. Mark Rossi was born in July 1967 and lives in Leatherhead, Surrey. The Secretary of State accepted the eight-year and six-year disqualification promises from Mark and Paul Rossi on January 18, 2019, respectively. Disqualification is scheduled to begin on February 8, 2019. It was an ineligible issue that Paul and Mark Rossi did not dispute.
Daniel Michael Goldberg was born in August 1976 and lives in Houghton Regis, Bedfordshire. The Secretary of State accepted the promise from Mr Goldberg on August 21, 2018 for three years and six months. Disqualification began on September 11, 2018. There were ineligible issues that Goldberg did not object to.
The disqualification order has the effect that a disqualified person cannot:
- Serve as a director of the company
- Directly or indirectly participate in the promotion, formation, or management of a company or limited partnership
- Become a recipient of company assets
A disqualification promise is the administrative equivalent of a disqualification order, but does not include court proceedings.
Persons subject to disqualification orders or business are bound by the following scope: Other restrictions
Bankruptcy Services manages the bankruptcy system, investigates all compulsory liquidations and individual bankruptcies (bankruptcy) through official recipients and reveals the reasons for bankruptcy. We may also use our authority under the Companies Act of 1985 to conduct a confidential fact-finding investigation into the activities of a UK limited liability company. In addition, the agency addresses the disqualification of directors due to corporate bankruptcy and evaluates and pays the statutory qualifications for redundant payments if the employer cannot or does not pay the employee, bankruptcy and liquidation real estate fund banks and Provides investment services and advises the minister and other government departments on bankruptcy laws and practices.