Monday, November 23, 2020

Firm’s collapse uncovers director’s previous ban

Published 23 November 2020

From The Insolvency Service 

 Husband and wife disqualified for 16 years after distribution firm’s insolvency exposes that banned bankrupt was managing company.

Daniel Ross Patchett (32) received a 10-year ban for managing a company when bankrupt, while his wife, Yasmin Patchett (30) has been disqualified for 6 years.

Husband and wife, from Kingthorpe, Lincolnshire, are banned from acting as directors or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

DRP Distribution Ltd was incorporated on 25 November 2016, providing storage and distribution services, working with several courier companies.

The company, however, was wound up by the courts in May 2019. The Official Receiver was appointed as Liquidator before uncovering that Daniel Patchett had been running the company whilst being an undischarged bankrupt, in breach of his bankruptcy order.

Investigators established that Daniel Patchett was an appointed de jure director of DRP Distribution Ltd in November 2016. He resigned his position in February 2018 after being made bankrupt a month earlier, which precluded him from managing companies.

Daniel Patchett confirmed to the Official Receiver that he had full involvement in the day-to-day running of the company and continued with these duties during the period of his bankruptcy.

Yasmin Patchett was appointed as a de jure director of the distribution company in August 2017 but left the day-to-day running of the business to her husband from the outset, including the period of his bankruptcy when she knew Daniel Patchett was not allowed to do so.

Further enquiries established that DRP Distribution Ltd owed the tax authorities more than £157,000 when the company went into liquidation, as well as just over £51,000 to other creditors.

Yasmin Patchett had her 6-year disqualification undertaking accepted by the Secretary of State in October 2020 after she did not dispute that she allowed a person to act as director of DRP Distribution Ltd whilst knowing they were an un-discharged bankrupt.

On 12 October 2020, the Secretary of State accepted a 10-year disqualification undertaking from Daniel Patchett after he did not dispute that he acted as a director of DRP Distribution Ltd in contravention of his bankruptcy.

Husband and wife’s bans were effective from 2 November 2020.

Rob Clarke, Chief Investigator for the Insolvency Services, said:

When Daniel Patchett’s company collapsed, his misconduct was uncovered and it was highlighted that he was running the company whilst being an un-discharged bankrupt. He took no notice of his bankruptcy restriction and his wife, Yasmin Patchett, knew he was unable to act as a director and covered for him.

We will investigate those who try and get around bans while having their spouse as an appointed director whilst continuing to run the business themselves, as the length of this ban shows.

Notes to editors

Daniel Ross Patchett is from Kingthorpe, Market Rasen and his date of birth is October 1988.

Yasmin Patchett is from Kingthorpe, Market Rasen and her date of birth is October 1990.

DRP Distribution Ltd (Company Number 10496605)

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of restrictions.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct.

Friday, November 20, 2020

An India-led multinational exercise

  Participating in Malabar  

U.S., Australian, Indian and Japanese vessels participate in Malabar, an India-led multinational exercise, in the Arabian Sea, Nov. 17, 2020.