A used car dealer who failed to pass on £174,450 of proceeds from five cars sold as part of ‘sale or return’ agreements has been disqualified from acting as a director for ten years.
Kevin James Warland, the director of Hinckley-based car dealership Choice Vehicles Ltd was banned from holding any directorship in a hearing at Coventry County Court following an investigation by the Insolvency Service.
Incorporated in April 2005, Choice Vehicles Ltd traded from Wharf Farm, Trinity Marina, Coventry Road, Hinckley.
The Insolvency Service revealed that 40-year-old Warland entered into a number of sale or return agreements on high-value vehicles – priced between £19,000 and £73,000 – in 2014.
But much of the proceeds related to the sales of five vehicles never reached their intended recipients, however, with fees remaining unpaid when Warland’s business went into liquidation in October 2014 owing an estimated £573,502 to creditors.
Aldona O’ Hara, investigation leader from the Insolvent Investigations Midlands and West team at the Insolvency Service, said: “The Insolvency Service will rigorously pursue company directors who deliberately breach the trust of customers.
“Fair treatment of customers and creditors is essential for business confidence which is, in turn, essential for economic growth.
“This disqualification is a reminder to others tempted to do the same that the Insolvency Service will rigorously pursue enforcement action to seek and remove from them the privilege of trading with limited liability to protect the public for a lengthy period.”