A director of an insolvent company had removed hundreds of thousands in unapproved expenses from the company – while leaving around 30 employees to lose their jobs.
A director of an insolvent company had removed hundreds of thousands in unapproved expenses from the company – while leaving around 30 employees to lose their jobs.
H&J purchased the claim against the director outright as the appointed insolvency practitioner was keen to dispose of the claim in its entirety; as the insolvency was due to be closed and the insolvency practitioner was keen to avoid legal costs eating into recoveries.
After a detailed investigation, we identified that the director had not in fact incurred the vast majority of the expenses he had claimed. In particular, it appeared he had fraudulently been claiming the costs of first-class travel for a large number of journeys when, in fact, he had travelled in standard class or, in some instances, not at all.
H&J brought a claim for repayment of these sums as an outstanding director’s loan. H&J successfully obtained judgment and an order for indemnity costs following a one-and-a-half-day trial.
H&J secured the recovery of more than £7m pursuant to a judgment handed down on 5 January 2024.
