A mortgage director has been disqualified for 13 years by the High Court for misleading investors in relation to two companies.
Peter Thomas Carron, former director of mortgage broker Primrose Associates and mortgage software firm Comment Technologies, misled investors, claiming their capital was invested with little or no risk and that he could ‘personally guarantee’ returns, according to a notice published by the Insolvency Service.
Mr Cannon also failed to disclose that investments were being paid into two insolvent companies - Primrose and Comment - of which he was director. As these companies failed, approximately 50 investors claimed lost investments in excess of £7.4m.
Despite the fact the accounts for Primrose showed the company to be insolvent, financial returns submitted to the Financial Conduct Authority showed the company to be solvent and financially viable.
Furthermore, Mr. Carron caused a third company, sourcing system provider Evaluate Technologies, to trade “to the detriment” of HMRC by not paying PAYE and national insurance contributions in excess of £750,000.
Mr Carron was ordered by the High Court that he should not act, manage or in any way control a company from 18 July 2014 to 17 July 2027 following an investigation by the Insolvency Service.
The judge refused Mr Carron leave to appeal. Any further application for permission to appeal must be made to the Court of Appeal.
Joanne Covell, a head of investigations at the Insolvency Service, said:“The disqualification sends a clear message to other company directors; if you seek to mislead your customers, or your regulator, the Insolvency Service will investigate and you could face a lengthy ban.”
HHJ Pelling QC said:“The allegations I have found proved that he is willing to mislead his regulator, HMRC, and those who to his knowledge are relying on him for guidance.
“Such a person is manifestly unfit to be a director of a company since it is plain that the public are exposed to the risk of loss as a result of such misconduct”.
