DF CONSULT LTD

Dmitrijs Fedorjans

July 1990

Disqualified from being a director because of their conduct for the period of

12 Years 0 Month(s)

Disqualification starts from

12 May 2023

Improper conduct which resulted in their disqualification

(i) On 02 February 2021, the Defendant caused DFC to fraudulently obtain a bounce back loan (“BBL”) of £50,000 contrary to the terms of the BBL scheme. The BBL funds were received into DFC’s bank account on 02 February 2021 which is after (1) 10 November 2020 when DFC ceased to trade and (2) 12 January 2021 when the Defendant decided to place DFC into creditors voluntary liquidation; and on the same day 02 February 2021 that DFC went into creditors voluntary liquidation with scheduled liabilities of £1,633,453. In that: • Mr Fedorjans was appointed as a director of DFC on 07 March 2019 and was the only appointed director of DFC thereafter; • DFC carried on business providers of payroll services to the construction industry; • On 02 October 2020, Mr Fedorjans consulted an insolvency practitioner regarding DFC’s financial position; • DFC ceased to trade on 10 November 2020; • DFC opened a new bank account on 08 December 2020. Mr Fedorjans initially failed to disclose that bank account to the insolvency practitioner; • On 12 January 2021, Mr Fedorjans instructed the insolvency practitioner to take the necessary steps to place DFC into creditors voluntary liquidation; • On 02 February 2021 DFC received a BBL of £50,000. Mr Fedorjans initially failed to disclose the BBL to the insolvency practitioner; • On 02 February 2021, DFC entered into liquidation with known liabilities of £1,633,453 including the BBL of £50,000, which Mr Fedorjans failed to disclose in the statement of affairs that he lodged in the liquidation; • Between 02 February 2021 and 04 February 2021, Mr Fedorjans disposed of those funds to third parties without the knowledge or consent of the joint liquidators. (ii) From start of trading on 07 March 2019 to liquidation on 02 February 2021, the Defendant failed to ensure that DFC maintained and/or preserved adequate accounting records or, in the alternative, has failed to deliver up to the joint liquidators such records as were maintained. As a result, it has not been possible to: • Determine the amount of DFC’s income and expenditure for the whole period of trading from 07 March 2019 to 10 November 2020; • Verify the accuracy of DFC’s accounts for the period ended 31 March 2020, which show: o Sales of £4,936,593; o Expenses of £4,926,179; o A net profit of £10,414; o Current assets of £44,343; o Liabilities of £33,829; o Capital and reserves of £10,514. • Account for the disposal of a bounce back loan of £50,000, which was received by DFC on 02 February 2021; • Determine the amount of remuneration, if any, received by Mr Fedorjans from DFC; • Determine the balance, if any, on Mr Fedorjans’s loan account with DFC; • Determine DFC’s liability, if any, to HM Revenue & Customs in respect of corporation tax, value added tax, PAYE income tax, national insurance contributions and tax deducted from labour payments to subcontractors in the construction industry; • Determine the amount due, if any, to former employees of DFC; • Determine the accuracy of the statement of affairs that Mr Fedorjans has lodged in the liquidation of DFC.