A bankrupt trader has been jailed for 14 months by Hull Crown Court after pleading guilty to fraudulent trading, forgery, use of a prohibited name, and managing a company while an undischarged bankrupt.
Stephen Joseph Beet set up a supplier and installer of double-glazing, UPVC Trade Frames (Hull) Ltd, after the failure of two other ventures which he ran, carrying the Trade Frames name.
The name “Trade Frames” had been prohibited after one of the unsuccessful businesses was liquidated, resulting in personal debts and Mr Beet’s bankruptcy.
Though Mr Beet was not named as a director, he acted as such, arranging overdrafts, meeting banks and recruiting salesmen.
The company provided low quotes to win work, and took deposits from customers knowing the business couldn’t meet its obligations.
The customers either received incomplete services or no work was done at all while no money was paid to creditors, leading to a £23,000 loss to customers and a £208,000 debt to creditors.
People who are bankrupt are banned from being company directors without permission from the courts.
The conviction follows investigations by the Insolvency Service and Department for Business, Innovation and Skills.
Commenting on Mr Beet’s conviction, deputy chief investigation officer Mike Williams said: “Mr Beet’s conviction sends a clear message that bankrupts who fail to abide by the restrictions imposed on them can expect to be investigated and brought to justice.”
In sentencing Mr Beet, Mr Recorder McKone said: “You have shown a persistent and dishonest flouting of the law over 3 years resulting in substantial loss to others.”
“Your offending is so serious only immediate custody is appropriate.”