RegulationDec 12 2013

Three CMC directors banned in false claims case

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A statement from the Insolvency Service said that Christopher Daniel Mills, Paul Michael Young and Mark Taylor have been banned from being directors for a total of 25 years by Glasgow Sheriff Court, after posing as frontmen for three companies that cold-called the public and offered to make compensation claims on their behalf.

According to the Insolvency Service statement, the court found there was no evidence that any claim had been successfully pursued by the companies, despite collecting more than £1.3m from duped customers. It also said that, once these companies persuaded customers to pay upfront fees, they disbanded and set up similar schemes under different names.

The Insolvency Service brought the case to court following an investigation and the companies were wound up in the public interest in June 2011 after petitions by Vince Cable, secretary of state for business, innovation and skills.

Ken Beasley, official receiver at the Insolvency Service, said: “These three companies set out solely to rip off the public, taking advantage of recent changes in legislation.

“The courts are sending a clear message that schemes that seek to deceive customers will be dealt with severely.”