Insolvency Service pledges to crack down on rogue firms

Posted 23/06/2009

The UK Insolvency Service has reaffirmed its commitment to clamping down on unscrupulous and dishonest business.

Stephen Speed, chief executive of the organisation, said it is “determined” to take action against the minority of rogue companies that deceive members of the public.

He criticised these firms for prospering by making false promises and exploiting honest citizens.

“The public need to be on their guard against the activities of unscrupulous operators,” he commented.

Mr Speed was speaking after five related firms in Cheshire that offered sub-prime financial opportunities were ordered into liquidation by the High Court following an investigation by the Insolvency Service.

The court agreed with the view that franchisees had been misled by false statements, such as the suggestion that the operating firm was a long-established and successful business.

This comes shortly after an Insolvency Service investigation led to the High Court closing down a Staffordshire-based firm which solicited funds from the public by purporting to be a property investment company.