Injury claims Director given prison sentence after taking company funds before closure

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A manager in charge of personal injury solicitor‌ claims company has been sent to prison for illegally taking company’s funds. Darren C. Bollough, a renowned personal injury claims chief based in Bury, was arraigned before Bolton Crown Court after pleading guilty to a single count of illegally and deceitfully obtaining company funds. He was also accused of not providing company books and other important records to the appointed liquidator. Darren pleaded guilty to this second accusation as well. This occurred on 14th November 2018.

According to information presented before the court, Direct Assist Limited was formally registered in mid-2007 as a company for managing personal injury claims. The limited company had a registered office in Bolton and another office in Bury. Darren C. Bollough, a 46-year old man, was the only director at the time of incorporation. In the year 2013, Direct Assist Limited started experiencing financial challenges after losing one of their most valuable and dependable clients. Consequently, a court petition was filed with the main objective of winding up the limited company due to an unpaid tax claim that amounted to £658,000. The petition was filed towards the end of 2014, precisely in September.

However, someone illegally withdrew a significant amount of money from the organization’s accounts as a result of the court petition. To stop the illegal activities, the bank account belonging to the company was frozen. This action was also taken to prevent creditors from suffering further losses. The Insolvency Service formally launched investigations when in March 2015; Direct Assist Limited was officially placed under compulsory liquidation.

It was very difficult for investigators to do their job given that company records from mid-2003 onwards were unavailable. The records would have provided details of all transactions undertaken during that period. Unfortunately, they were not available.

Nevertheless, investigators found out that between September 2014 and December of the same year, Darren Bollough had deceptively withdrawn approximately £ 51,000. Darren fraudulently withdrew the funds just a few months before a court issued an order to wind up Direct Assist. The company was wound up as a result of that court order.

Members of Mr. Bollough’s family received about £ 28,000 of the illegal loot. £3,600 was withdrawn from the organization’s bank account, and about £ 19,000 was spent through its credit card. Surprisingly, Darren made the first fraudulent withdrawal barely 24 hours after filing of the petition in court.

In addition to the jail sentence, Judge Stead issued a seven-year Declaration Order as well. The order effectively forbids Mr. Bollough from direct or indirect involvement in the company’s promotion, management or other important activities, unless he first obtains permission from the honorable court.

The Insolvency Service’s lead investigator, Mr. J. Fitzsimmon’, revealed that Darren was renowned for leading a lavish lifestyle. He had been spending unbelievable amounts of money on fast cars and luxurious real estate property. Darren recklessly withdrew funds from the organization with full knowledge of its financial difficulties.

The chief investigator applauded the court’s verdict and recognition of how sever the culprit’s offenses were, given that Darren had fraudulently withdrew money that did not belong to him, recklessly spent the funds and denied the organization’s creditors their rightful payment.