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Care home director disqualified over missing £518,000

Care home director disqualified over missing £518,000

A care home director has been disqualified from managing a company for six years after failing to explain the disappearance of almost £518,000.

Laurie Gray, 50, was the director of Seabank Care Home in Saltcoats, incorporated in 2020 to operate Seabank Care Home.

The firm, which began to encounter difficulties in 2016, liquidated in 2018, at which point the liquidator found that Gray had failed to preserve or deliver adequate accounting records for the firm.

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Gray was unable to explain payments by Seabank Care including cheque payments of £111,047, unexplained withdrawals of £62,887 and payments to a connected party and their companies totalling £343,717.

The amount that left the company accounts totalled nearly £518,000.

The firm also had a loan of £50,596, and the liquidator was unable to confirm if it was for the benefit of the company or not.

On April 6, 2021 the Secretary of State accepted a disqualification undertaking from Gray which means he cannot form or manage a new company without the permission of the court.

Rob Clarke, chief investigator at the Insolvency Service, said: “As director of Seabank Care Home, Laurie Gray was entrusted with looking after the residents in his care, including using the funds they paid on legitimate costs. 

“Instead, he failed to keep records or account for almost £518,000 leaving the company accounts.

“This ban should serve as a warning to other directors that if you fail to meet your obligations, including preserving accounting records, we can take action.”

Gray also operated a second care home, Woodside Care Home, which was also forced to close due to the liquidation.