Home / The Rix & Kay Blog / Care home director banned for failing to explain £518,000 spends following Insolvency Service investigation
Richard Ludlow

Partner - West Kent (Hadlow)

22nd July 2021

Care home director banned for failing to explain £518,000 spends following Insolvency Service investigation

A Care Home director has been disqualified for 6 years after the care home he ran went into liquidation and, following an investigation by the Insolvency Service and the liquidator, his being unable to provide any explanation for the hundreds of thousands of pounds that left the company accounts.

Laurie Gray, 50, from Hamilton was a director of Seabank Care Ltd in Saltcoats which was incorporated in 2010, and ultimately operated Seabank Care Home. The company traded successfully for several years but began to encounter difficulties in 2016 and 2017. He was unable to explain the company’s expenditure including cheque payments totalling £111,047, other unexplained withdrawals worth £62,887, and payments to a connected party and their companies totalling £343,717. Funds leaving the company accounts totalled almost £518,000.

Read the full story here: Care home director banned for failing to explain £518,000 spends

Rob Clarke, chief investigator at the Insolvency Service, said that “This ban should serve as a warning to other directors that if you fail to meet your obligations, including preserving accounting records, we can take action.”

If your company or business is struggling then please contact Rix & Kay Solicitors LLP and ask to speak to Richard Ludlow, Kathryn Paisley, or Dan Sherlock for advice as to your options and for us to put you in touch, should you wish it, with an insolvency practitioner who can provide specific advice on the implications of your company failing.

Contact our dispute resolution lawyers in West Kent (Hadlow), Ashford, Brighton & Hove and Uckfield

If you are seeking advice regarding this or any dispute matters, then please contact Richard Ludlow in Rix & Kay’s dispute resolution team on tel: 01732 441695 or email: richardludlow@rixandkay.co.uk