The director of Miss Pebbles Clothing, a Leicester-based garment manufacturer, has been sentenced to six months in jail after failing to provide adequate company accounts.
Ezazali Ahmed Namaji established the business in 2015 which, until its liquidation in 2016, employed nearly 50 staff members.
Upon collapse, the business owed funds to the tax authorities as well as a further £44,000 to its creditors.
However, the Insolvency Service found that Namaji had kept inaccurate accounting records, putting the whereabouts of £983,000 cheque and debit card withdrawals into question.
The defendant’s “unscrupulous conduct” deepened as Miss Pebbles Clothing was found to have failed to pay tax liabilities of over £300,000 during its 13 months of trading.
In what has been labelled a “serious offence”, Namaji also took contributions from his employees without passing them on, landing him with a five year directorial ban and the six months prison sentence.
Glenn Wicks, chief investigator at the Insolvency Service, said: “Ezazali Ahmed Namaji was a negligent company director who failed to maintain company records.
“This sentence should serve as a stark warning to others that we will investigate those that think they can flout their responsibilities as directors and cause harm and loss to the public purse.”