AN INSOLVENCY PRACTITIONER has been banned from being a director for six years after an Insolvency Service investigation found he had inappropriately handled clients’ money.
David Pollard, a director of an accountancy firm and insolvency practice, was disqualified by the regulator after it uncovered that he had held on to client funds and claimed duplicate fees.
The misconduct identified by investigators included that Pollard had breached his fiduciary duties by inappropriately handling clients’ and liquidation monies held on trust.
Pollard was the director of TAG (Chesterfield) Ltd and The Recovery Partnership Ltd which were wound up by the court in the public interest on 9 May 2013 owing creditors and shareholders £90,434 and £8,484 respectively.
A claim for £156,615 was received for the latter but was disputed by Pollard and is not included in the overall amounts due to creditors and shareholders.
Pollard failed to separate the financial affairs of TAG (Chesterfield) Ltd and The Recovery Partnership Ltd and that it was impossible to determine elements of each company’s income and expenditure.
Investigators also uncovered that at least £24,157 was retained after companies were compulsory wound up or dissolved, that duplicate fees of at least £12,100 were taken and payments of at least £30,020 were made to connected parties and not disclosed to creditor. Those payments have not been recovered.
Commenting on the disqualification, Ken Beasley, official receiver of the Insolvency Service’s Public Interest Unit, said: “The Insolvency Service will always look closely at individuals who hold themselves out to be financial professionals but who cannot be trusted to handle people’s money in a proper way.”
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