A company director who withdrew more than £40,000 from his business, which he knew was insolvent, has avoided jail.
Alan O’Grady, 55 and from Widnes, was director of Tailored Recruitment Services Ltd, which supplied staff to the warehouse sector and major UK companies in the northwest of England.
Tailored Recruitment Services was wound up in 2017 with more than £1million owing to HMRC in unpaid taxes. An investigation by the Insolvency Service found that O’Grady had taken £43,353.50 out of the company, even though he knew it was insolvent. He told investigators he could not remember the transaction, although it was discovered he had used the money to fund a property purchase for his mother-in-law.
O’Grady accepted a disqualification undertaking and was disqualified for nine years in 2019 for his failure to maintain adequate accounts and records as a director and for withdrawing funds to the detriment of creditors. The case then proceeded to criminal prosecution, to which he pleaded guilty and also agreed to repay £35,000.
He received a 22-and-a-half-month suspended sentence at Liverpool Crown Court. O’Grady was also ordered to complete 60 hours of community service.
Following the conviction, John Ingham, from the Insolvency Service said: “This sentence will send a message to those who are in a position of trust as company directors to honor their liabilities to creditors, and in particular the public purse, rather than for personal or third-party gain.”