“Their persistent and well-crafted representations made all the difference, ultimately securing a successful outcome in my favour.”
NDP’s director disqualification solicitors were contacted by the Director of the Company who had received correspondence from the Insolvency Service (IS), who were investigating the Director’s conduct in his failed company and whether director disqualification proceedings should be brought against him.
The allegations: misuse of Education & Skills Funding Agency (ESFA) funding
The main allegation of unfitness against the Director was that he caused the Company:
- To submit false information to the ESFA to gain more funding than the Company was entitled to, in breach of the rules of the funding agreement and to the detriment of the EFSA who suffered a loss of as a result.
In addition:
- In funding claims submitted on behalf of the Company, the Director had claimed that individuals were apprenticeships and therefore eligible for funding when they were not.
- In breach of the terms of the funding agreement, the Company did not have qualified delivery staff, had apprentices that were being paid below the apprentice minimum wage, made claims for employers of dormant or dissolved companies, and made claims for employers for non-relevant fields of apprenticeship, as well as individual learner records data inconsistencies. This resulted in overclaims of funding by the Company for two funding years.
NDP’s strategic response
The director sought urgent support from Neil Davies & Partners. Mandeep Nagra acted promptly, taking detailed instructions and collecting key evidence to demonstrate the director’s lack of culpability.
The Director argued that he had relied on his co-Director and other experienced staff members to deal with the ESFA on behalf of the Company. Mandeep, in his letter of representation to the Insolvency Service, set out in detail the key roles and responsibilities of those members of staff in the Company who were dealing with the ESFA and also the Company’s apprenticeship scheme.
Video footage was also obtained of these key staff members showing their direct role in setting up and dealing with the apprenticeship scheme at the Company and dealing directly with the ESFA.
The argument raised on behalf of the Director, was that he was not directly involved in the alleged unfit conduct, given that the operational aspects including the management of the apprenticeship scheme and the dealings with the ESFA were all under the control of a co-Director and other key members of staff. This was therefore not an abrogation case which was highlighted to the Insolvency Service.
Case Outcome: The Insolvency Service dropped their Director Disqualification investigation
Following receipt of the lengthy representation made to the Insolvency Service on behalf of the Director, they wrote back to confirm that they did not propose to take disqualification proceedings against the Director.
The Director was delighted with the outcome:
” I’m incredibly thankful to Neil Davies and Mandeep Nagra at NDP for their tireless efforts and strategic guidance during my director disqualification matter. Their persistent and well-crafted representations made all the difference, ultimately securing a successful outcome in my favour.”
Wider context and precedent
This case followed a similar case where the Secretary of State lost at trial. The Insolvency Service typically relies on complaints made by other Government Agencies, here the ESFA. Mandeep in this case particularly challenged the Insolvency Service and whether they had carried out their own full and complete investigation of all the underlying circumstances of the case.
Contact our Director Disqualification solicitors if threatened with an investigation by the Insolvency Service
If you are a Director facing an investigation by the Insolvency Service for alleged misconduct in dealing with the ESFA, or any other Government body, then please contact our experienced team of Director Disqualification solicitors, call us on 0121 200 7040 or email us at law@ndandp.co.uk.
