A woman from Manchester has been disqualified as a director for 10 years for charging small businesses for a fake business rates reduction service.
Sarah White, also known as Sarah Regan, has been disqualified from acting as a director following an investigation by the Insolvency Service.
She was director of Manchester-based Harrison Black Associates Limited, which, together with the London branch Hayden Moss Associates Limited, promised small business owners that for a fee of up to £3,000 it would reduce their business rates.
Business owners were led to believe they were guaranteed a reduction in their rates or they would received a full refund.
Cheryl Lambert, chief investigator at the Insolvency Service, said: “Sarah White was purporting to offer a service she knew the company could not, and did not, provide.
“She took no steps to ensure that Harrison Black did what customers had paid for and what had been promised within a contract.
“Taking action against her should serve as a warning to all directors that if they are abusing their position we will remove them from the marketplace.”
The Insolvency Service investigation established that misleading information was provided to customers about the potential benefits of the company’s services.
Customers were also shown misleading documents to induce them to make payments and were wrongly led to believe they were guaranteed a reduction in their rates or they would receive a full refund.
Ms White, 32, of Audenshaw in Manchester, informed customers payment was required to instruct a surveyor and 31 of the 33 customers made a payment and received no such visit.
The Insolvency Service found no evidence of any rate reduction appeals made on behalf of customers or any refunds made.
Following various complaints the Insolvency Service opened an investigation into the company under powers set out within the Companies Act 1985.
Both companies were then wound up at Manchester District registry last year. A number of small business owners were left out of pocket by over £34,000.
The Secretary of State for Business Energy and Industrial Strategy accepted an undertaking from Ms White on 11 September 2017. The disqualification is from 2 October 2017.
damian.fantato@ft.com
