A businessman who withdrew £40,000 from an insolvent company to buy property for his mother-in-law has been ordered to repay £35,000.
Alan O’Grady, 55, of Larne Court Widnes, was a director of Tailored Recruitment Services Ltd (TRS), which supplied staff to the warehouse sector and major UK companies in the region.
TRS was wound up in 2017 with over £1 million owing to HMRC in unpaid taxes. O’Grady accepted a disqualification undertaking and was disqualified for nine years in 2019 for his failure to maintain adequate accounts and for withdrawing funds to the detriment of creditors.
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The Insolvency Service investigation at that time found that O’Grady had taken over £40,000 out of the company despite knowing it was insolvent.
He told investigators he could not remember the transaction, however it was discovered he had used the money to buy property for his mother-in-law.
O’Grady appeared at Liverpool Crown Court on October 19 when he agreed to repay £35,000.
Miss Recorder Bex QC sentenced him to 60 hours community service and handed him a 22-and-a-half month prison sentence which was suspended for 12 months.
He had pleaded guilty to fraud in anticipation of winding up and failing to keep company records.
John Ingham from the Insolvency Service said: "This sentence will send a message to those who are in a position of trust as company directors, to honour their liabilities to creditors and in particular the public purse, rather than for personal or third-party gain."
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