Two Chesterfield accounting firms shut down

TWO CHESTERFIELD ACCOUNTANCY FIRMS found to have put clients’ money at risk through poor business practices have been wound up in the public interest by the High Court following an investigation by the Insolvency Service.

TAG (Chesterfield) Limited and The Recovery Partnership Limited were found to have both traded under the name ‘The Insolvency Group’ despite being separate businesses. According to the Insolvency Service, there was a lack of transparency as to which company was responsible for which client accounts, while the books and records kept failed to properly explain their use of clients’ money.

In one case identified by investigators, £150,000 was received by TAG from a client company that later went into liquidation. However, when that company entered the insolvency process and the liquidator pursued the £150,000 from TAG the firm had no proper records of where the money went. 

The Insolvency Service also accused David Pollard, who was the sole director of both firms, of frustrating the investigation because he failed to co-operate with the investigator, by not providing information as requested, particularly banking and other financial information, and for failing to disclose money that had been withdrawn from client accounts.

“These companies offered solutions to businesses that were experiencing financial difficulties, but they were operated in such a way as to undermine the insolvency regime by making it unclear where the lines of responsibility were drawn and by failing to adequately ring-fence client funds,” said Scott Crighton, case supervisor at the Insolvency Service.

TAG was incorporated on 16 September 2010 and initially offered both accounting and insolvency services using the trading names ‘The Accounting Group’ and ‘The Insolvency Group’ and generated an overall turnover of £439,000.

The Recovery Partnership was incorporated on 31 March 2011 to take over the insolvency side of TAG’s business and operated from the same premises. It appointed a licensed insolvency practitioner as one of its co-directors to deal with this insolvency business and generated an overall turnover of some £401,000.

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