PracticeAccounting FirmsSix ‘dishonest’ directors disqualified

Six 'dishonest' directors disqualified

The Department of Trade disqualified six former directors of two insurance broking companies for a total of 33 years because of their dishonest conduct.

The Companies Investigations Branch of the DTI concluded its investigation into directors working for JA Chapman and Company and Dobinson Gregory and Company, who work predominately in the Lloyd’s insurance market.

It concluded its six directors, of which one finance director, used fraudulent practices to generate secret profits.

‘Using a practice known as ‘grossing up’, the directors agreed premiums with insurance underwriters and then charged clients inflated prices. They siphoned off the profits to third parties, principally companies based in Liberia, without any proper explanation,’ the CBI stated today.

Mr Justice Peter Smith disqualified Jonathan Andrew Chapman, the former managing director of Chapman for a period of 9 years. The judge agreed with the Secretary of State’s allegations against Mr Chapman:

‘I have no hesitation in finding that he knew the practice was thoroughly dishonest. The facts speak for themselves. I do not see how he could have been aware of any proper basis for which the transactions could take place,’ he said.

Mr Justice Smith further disqualified Chapman’s former finance director Roger Rex Ingles for five years. He also disqualified former Dobinson directors Michael Paul Perry, Glen Dobinson, James Anthony Kimber for five years, while former Dobinson director David Edward Gyngell was disqualified for four years.

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