The Director of a company that ran a Spar store in Barrhead Road, Glasgow has been disqualified from running a company for 11 years for “using fraudulent means to remove funds from the company’s account and to obtain goods on credit”.
Naeem Javed’s company, Petal Scotland Ltd (PSL), went into liquidation in 2016. He had been its Director for over 12 years.
An investigation by the Government’s Insolvency Service found that before PSL went under, Javed siphoned-off £85,000 he obtained by hitting-up the company’s bank for false indemnity claims.
The 46-year-old also used the company to get hold of £90,000-worth of Marks & Spencer gift cards on credit, at a time when PSL had no way of clearing its outstanding debts of over £160,000.
He also held back the Insolvency Service investigation by failing to produce PSL’s accounts, a move that also hampered the potential recovery of assets for the benefit of creditors.
Robert Clarke, Head of Company Investigation at the Insolvency Service said: “The Insolvency Service will rigorously pursue company directors who deliberately defraud their stakeholders for their personal gain. Fair treatment of business partners and creditors is essential for business confidence which is, in turn, essential for economic growth.
“The substantial period of the undertaking agreed illustrates that Mr Javed has paid the price for his conduct, and cannot now carry on in business other than at his own risk.”