How to Make Fraudster Personally Liable

tucana_2

I'm asking this question on behalf of my wife, so "I" is her!

I was a full-time employee at a company for a few months. The director promised a modest salary verbally in front of witnesses, but I accepted partial payment of my wages for a time on the basis that the company was new and had not got much money yet. Mostly I was paid from the director's personal account, by cheque, an amount to cover my travel expenses and lunches only. However none of the employees were given contracts of employment. Some employees were paid in full. After a few months this director set up a second company, making some of the managers of the first company directors of it without their knowledge, apparently with the intention of skimming off funds for himself. The managers all resigned and the company became dormant.

The director talked about liquidation so I waited for this to happen to get my wages, but it didn't happen. When I asked about my wages later, he claimed I had never been an employee and, further, that there had been no employees. I know he had not declared anyone to HMRC, and nobody was given P45's when they left. I decided to take him to the Employment Tribunal, which is due shortly. However, he appears to have resigned his directorship in response to the impending hearing and appointed two of the former managers as directors (again without telling them). My question is, how can I make sure he will be held personally liable for my wages? Even if the company is found to be responsible, I don't know at this stage whether it has the funds to pay or whether he has spent them (illegally, no doubt). As well as the misfeasance with the skimming company and resignation/appointments, I know of fraudulent preference as he has given assets to a preferred creditor and indeed denies that I am a creditor (I have lots of witnesses and written evidence however). Nobody else was to blame, he had sole control of the company's bank account anyway, even though mostly he paid me from his personal account. He and his wife were the sole directors (she was passive and as far as I know had no real part in the business). The company is not in liquidation at the moment and it would be prohibitively expensive for me to begin that process.

Thanks in advance for your answers.

1984ReturnsForReal_2

I would start by looking at the documents filed at companies house & checking out the signatures.

Speak to the people he made directors & confirm they are not directors then inform the Police, trading standards, companies house & HMRC.

As for the money. You will just have to wait for the IT.

hartcjhart

tucana wrote: »

I'm asking this question on behalf of my wife, so "I" is her!

I was a full-time employee at a company for a few months. The director promised a modest salary verbally in front of witnesses, but I accepted partial payment of my wages for a time on the basis that the company was new and had not got much money yet. Mostly I was paid from the director's personal account, by cheque, an amount to cover my travel expenses and lunches only. However none of the employees were given contracts of employment. Some employees were paid in full. After a few months this director set up a second company, making some of the managers of the first company directors of it without their knowledge, apparently with the intention of skimming off funds for himself. The managers all resigned and the company became dormant.

The director talked about liquidation so I waited for this to happen to get my wages, but it didn't happen. When I asked about my wages later, he claimed I had never been an employee and, further, that there had been no employees. I know he had not declared anyone to HMRC, and nobody was given P45's when they left. I decided to take him to the Employment Tribunal, which is due shortly. However, he appears to have resigned his directorship in response to the impending hearing and appointed two of the former managers as directors (again without telling them). My question is, how can I make sure he will be held personally liable for my wages? Even if the company is found to be responsible, I don't know at this stage whether it has the funds to pay or whether he has spent them (illegally, no doubt). As well as the misfeasance with the skimming company and resignation/appointments, I know of fraudulent preference as he has given assets to a preferred creditor and indeed denies that I am a creditor (I have lots of witnesses and written evidence however). Nobody else was to blame, he had sole control of the company's bank account anyway, even though mostly he paid me from his personal account. He and his wife were the sole directors (she was passive and as far as I know had no real part in the business). The company is not in liquidation at the moment and it would be prohibitively expensive for me to begin that process.

Thanks in advance for your answers.

ask your bank for proof about the cheques he gave you,and let him explain why he has been making payments

SarEl

Unfortunately, whilst you may be able to prove that you were an employee, you were an employee of the company. It is therefore the company that is liable, not the individual Director. Even if he conducted the affairs of the company unlawfully, the company is still the legal entity. Whethe can be prosecuted for his conduct of the company is a separate issue (and one that you probably don't care too much about, except in a "hope he gets what he deserves" sort of way) - but it is the copany that owes your wife the money and if she wins the tribunal then it will be the company that owes the money. And it would be irony if I said, good luck getting any of it - this happens all too often and employees end up with nothing at the end, except possibly a bill from trying to get their money. Sorry, but I suspect you won't ever see the money.