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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10226
Experience:  I have been practising for 30 years.
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Is it criminal law or civil law when a director of a Limited

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Is it criminal law or civil law when a director of a Limited cleaning company (The now exhusband ) takes up to 60k out of the business for his own personal use,foreign holidays and flights, large amount of cash from ATM's,clothes and shoe paid off personal credit cards, resulting in the business going into liquidation owing HMRC 54K.Two of the transaction were conducted when he knew they was going into liquidation One he paid £1000.00 into the bank of his credit card, and the second flights costing £800.00. The other director (his wife was not allowed to see the Bank statements or yearly return.Just sign) Due to this she has lost her house and has had to repay 25k secure loans. The Police say it is a civil matter and the liquidation has wrote it off. No one is interested thats why she has come to me. I am an ex Senior Police Officer.Ps He set up a new Company, and rented store age and paid for it six months previous through old Company.

Hello - so he is trading again? what is the company? how long have they been divorced?

Customer: replied 5 months ago.
Excellent floor Care Ltd, waiting for divorce absolute, he problems paying staff and has not fully paid liquidator for new Company.
Customer: replied 5 months ago.
I send him a file I prepared, without looking at it he said to the courier. I have done nothing wrong. I believe there is a prima face case under Section 3 of the Fraud Act. The Police said he could do what he wanted with the company money, there civil matter. No director Loan Accounts Yearly non audited yearly return.

In cases like this, the police will usually just say it’s a civil matter. This they would want an open ready fraud case! I know it’s somewhat frustrating because this is clearly defrauding creditors but from experience, that’s the way it would be looked at.

I am aware of one client who took £18,000 from the company bank account of the limited company a week before it went into liquidation. HMRC were owed £25,000 and they wanted it (I cannot remember where he spent it) and they bankrupted him.

So, if HMRC get wind of this, they will take it on board. They will also pursue a criminal prosecution if they think it appropriate.

There’s nothing to stop it being brought to the HMRC attention!

.Can I clarify anything for you?

I’m happy to answer any specific points arising from this.

Please take a moment to look at the top right hand corner of the page and rate my service by clicking one of the stars at the top of the screen. It’s important you use the rating service because that gives me credit. It doesn’t just give me a pat on the head! All you need to do is press Submit. Thank you. If you still need any point clarifying, I will still reply because the thread does not close.

Best wishes.


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Customer: replied 5 months ago.
Thanks for everything, your answered have cleared my mind, I am the old school of police . I believe in the law.As a police Inspector I use to prosecute in Court before CPS. I have prepared a complete case file Part of this is what I sent to him. I am going to put everything on memory sticks. One for the Police, one for her divorce solicitor and one for HMRC. It may make one of them sit up and do what is right. She had everything before she met him.She finished up without her home, owing money for legal expenses and having to live with her daughter. Thanks for everything. Regards ***** *****