Bankrupt goes to jail for fraudulent trading and forgery

A bankrupt who acted as a shadow director was sentenced to 14 months imprisonment at Hull Crown Court earlier this week.

Stephen Joseph Beet pleaded guilty to the use of a prohibited name, acting in the management of a company whilst an undischarged bankrupt, fraudulent trading and forgery.

An investigation by the Insolvency Service showed that Mr Beet set up a new company, UPVC Trade Frames (Hull) Ltd, which supplied and installed double glazing. The company was incorporated following the failure of two similar ventures, Trade Frames (Hull) Ltd and Trade Frames. Mr Beet was the sole director of Trade Frames (Hull) Ltd, which went into liquidation in February 2006. Trade Frames, a sole trading business, was set up in February 2006 and also run by Mr Beet.

The name Trade Frames was prohibited because a similar name had been used in the previous liquidated company of which he had been a director. This business was unsuccessful, resulting in personal debts and Mr Beet’s bankruptcy.

He was not named as a director of the new company, but acted as such, arranging overdrafts with the banks, attending meetings at the banks, recruiting salesmen, dealing with the bailiffs and inspecting suppliers’ products. People who are bankrupt are prohibited from being directors or acting as directors of a company without the permission of the court.

“You have shown a persistent and dishonest flouting of the law over 3 years resulting in substantial loss to others,” said Mr Recorder McKone in sentencing Mr Beet. “Your offending is so serious only immediate custody is appropriate."