Kevin Morris, also known as Kevin Gordon Sykes, 61, from north London has been disqualified for the maximum 15 years after he was found to be a de facto director of Rigil Kent Acquisitions Limited (RKAL), while disqualified from acting as a director, as well as deliberately undermining the insolvency regime through RKAL’s dishonest activities.
Breaching a disqualification is a criminal offence and the Insolvency Service can prosecute these cases. Kevin Morris’ latest disqualification has also been passed to the Director of Public Prosecutions to consider further action.
RKAL, which was established in 2015, presented itself as a turnaround or recovery service, and promised companies in financial difficulties that it would enable them to wipe their business debts and avoid formal insolvency proceedings, for a fee of between £5,000 and 10% of the failing company’s total liabilities. Morris would assure directors that they could walk away from any further financial or legal responsibility in the company, which was not true.
RKAL was shut down by the Insolvency Service in February 2018, along with eight associated entities, and an investigation was launched.
RKAL’s website described the company as offering ‘unlicensed Insolvency Practitioners’, which do not exist.
It also stated that RKAL would “discuss options such as Corporate Rescue Sale, a Company Voluntary Arrangement or a Scheme of Arrangement all of which we will implement for you taking the worry off your shoulders.” However, no evidence of this was identified in the investigation.
Kevin Morris benefited financially from RKAL’s activities while no money was returned to creditors including those of the distressed companies RKAL acquired.
According to documents filed at Companies House, the sole director of RKAL was Nataliia Fox, who was in a relationship with Kevin Morris at that time. She was under his direction and generally working on his instructions.
As a result, Nataliia Fox has been disqualified for 11 years, for allowing the company to trade as it did, and allowing Kevin Morris to act as a director while knowing he was disqualified from doing so.
Jo Caswell, Deputy Official Receiver said:
“Kevin Morris claimed to be an unlicensed insolvency practitioner, a role that does not exist. As the Court has found, he created a nefarious scheme for the purpose of subverting the insolvency system for his own financial gain, and he flagrantly breached his previous disqualification in doing so.”
Caswell continues “The Insolvency Service will not hesitate to act in protecting the public from commercially immoral business practices, winding up those corporate vehicles utilised and taking action against their directors. Kevin Morris now faces a further maximum period of disqualification and may also face criminal sanction for his actions.”