November 2022 Round-Up: The UK’s latest insolvency and bankruptcy statistics

This month we cover the insolvency stats for October 2022 and we look at three insolvency news stories from November. Including:

  • Three directors are disqualified from running a business after mis-selling pensions which lost investors millions.
  • An engineer in Glasgow is banned for £100,000 BBL abuse
  • A director in Hampshire is banned after losing £8 million of investors’ money in a scheme to build care home apartments.

Read last month’s round-up: Bankruptcy and Insolvency News October 2022

signing pension

Disqualified directors took £44 million from investors in pension schemes

Following an investigation by the Financial Conduct Authority (FCA) Aiden Henderson, 40, Andrew Page, 61, and Thomas Ward, 61, have been disqualified as directors. 

Earlier this year they were banned from operating in the financial services sector after mis-selling pensions, in which investors lost over £44 million. Clients of Henderson Carter Ltd and Financial Page Ltd trusted their investments to Mr Henderson and Mr Page who were both independent financial advisers, with Mr Ward acting as a director.

The directors advised clients to place their investments into Self-Invested Personal Pensions (SIPPs). However, they failed to explain that these were high-risk investments based in Mauritius, therefore not regulated by UK bodies.

Both companies went intxfo liquidation in 2017, at which time the FCA started their investigation. 

10-year Disqualification Orders were handed out to both Thomas Ward and Andrew Page following a trial on the 30th of September 2022. Aiden Henderson also received a 10-year disqualification when his trial concluded on the 23rd of November 2023.

£100,000 BBL abuse results in a ban

Disqualification as a director for 11 years was the result of John Gerard McGarvey’s loan fraud. The 37-year-old from Rutherglen had acquired two Bounce Back Loans, with an amount totalling £100,000 – which were used to benefit himself personally. 

Prior to liquidation in November 2021, his incorporation CKO Civil Engineering and Surveying Limited based out of Kirkintilloch Stanley ran since October 2019 and operated as a surveyor’s firm in Scotland.

In July 2020, CKO applied for a Bounce Back Loan of £50,000 with an indicated previous year’s turnover of £225,000. Despite the BBL rules against making multiple loan applications, 4 weeks later Mr McGarvey did just that when he reapplied to another bank in August and specified his previously recorded annual income as being only slightly lower at £218,000.

CKO into liquidation due to the financial difficulties caused by Covid-19. An Investigation led by the Insolvency Service uncovered that two loans had been applied for and submitted with exaggerated figures of the company’s turnover in order for them both approved. 

The investigation revealed that instead of using this money as intended to support his business, McGarvey used the funds for personal gains.

John Gerard McGarvey was disqualified from becoming a director of any company for 11 years.

Other stories of BBL abuse: 15 months imprisonment for BBL fraud

Care home scheme loses investors £8 million

An investigation by The Insolvency Service into Sean Murray and CHF 9 Limited revealed a scheme to build care homes in a Grade-II listed building has lost investors over £8 million.

The scheme started when CHF 9 purchased a Grade II listed property near Bishop Auckland in County Durham. CHF 9 bought the property for £350,000 and the surrounding area for £500,000 to build 45 care home studios in the building and an additional 40 in the land.

Such a development requires planning permission, and when Mr Murray was told he could build 10-15 apartments he proceeded to seek investment for 80.

Following further investigation, alarming discrepancies were discovered in Sean Murray’s financials. £3.3 million was paid to a connected company while an additional £2.8 million went directly to the firm’s solicitors – before £1 million entered CHF 9’s bank account.

Sean Murray did not dispute the accusations from the Secretary of State for Business, Energy and Industrial Strategy and has accepted a 10-year disqualification. He will not be able to directly, or indirectly become involved in promoting, managing or forming a company without the permission of the court from May 2022.

England and Wales Monthly Insolvency Statistics

Company Insolvencies during October 2022

  • There were 1,948 company insolvencies in October 2022, 38% higher than the same month in 2021 (1,410)
    • 242 compulsory liquidations.
    • This is four times higher than in 2021, but only 2% higher than in 2019 before the pandemic.
    • 1,594 CVLs, 53% higher than in October 2019.

Individual Insolvencies during October 2022

  • 1,894 DROs were registered, and 531 bankruptcies in October 2022.
  • On average, there were 7,610 IVAs registered in the 3-month period leading up to October 2022. This is 8% higher than the previous year.
  • A 31% increase in Breathing Space registrations occurred in October 2022 (6,342).

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