The Managing Director of a European Haulage Company has been heavily punished for his role in a cunning factoring scam.
The Insolvency service mounted a huge investigation into the conduct of Malcolm Thorpe and his unethical business dealings. Thorpe was Managing Director of Lincolnshire based CTL European from 2010 ill its collapse in October 2014.
The Haulage firm went into administration owing £177,551. It emerged that Thorpe had submitted a whopping 326 false invoices to a unnamed factoring company causing them losses of £124,670.
The Insolvency service found that Thorpe had failed in his duty to take adequate actions or follow protocol which resulted in his company receiving funds that they were not entitled to. This was found to have happen over two separate periods.
Following the investigation, Malcolm Thorpe has now been disqualified from acting as a Company Director for 7 years.
The Insolvency Service’s Chief Investigator Robert Clarke said “Using false documents is contrary to the conduct expected of a company director and the Insolvency Service has strong enforcement powers which we will not hesitate to use to remove dishonest or reckless directors from operating a business in an environment with the benefit of limited liability”
The Insolvency Service hopes this strong punishment will serve as a deterrent to those considering a similar act of dishonesty.
