There was an interesting article in a North West regional newspaper this week about a couple of company directors who have been banned from running a company after being caught out defrauding a factoring company.
Administrators were appointed to the textile company two years ago and it would appear that during their routine examination of the books they uncovered a substantial fraud and the company directors later admitted that they had raised fraudulent invoices in excess of £210,000
The factoring company had an investment in the debts in excess of £500,000 and it would therefore seem that close on half of that sum was fictitious and therefore uncollectable.
Hopefully the directors ban won’t be the end of the matter as what these people have done is fraud and should be treated as such with a prison sentence to be looked forward to.
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