MR GARY HOWARD

Disqualified from

2022-09-29

Date of birth on record

January 1980

At a time when, based on the information available to me I now accept, St Cyprian's Student Halls Ltd ("SCSH") was insolvent, between 08 March 2018 and the date of liquidation I caused SCSH to make net transfers totalling at least £116,469 to connected parties. During this period investors received £3,104 and HMRC did not receive any payment. Investors and HM Revenue & Customs ("HMRC") were between them owed an estimated £1,719,716 when SCSH went into liquidation. In addition to this, I prepared to transfer the freehold title of the building owned by SCSH to Linmari Group Ltd ("LG"), a company of which I was the only formally appointed director, after 08 March 2018 at a time when SCSH was insolvent. Whilst no transfer was ultimately achieved, and it was formally agreed with the liquidator that the documents prepared for the transfer were of no legal effect, an agreement was made to pay £30,000 towards LG's costs. The planned transfer of the freehold therefore caused a loss to the liquidation estate of £30,000, to the detriment of the Investors' and HMRC's claims on the liquidation estate. Knowledge of Insolvency as at 08 March 2018 Between 27 April 2017 and 24 January 2018 six County Court Judgments ("CCJs") were issued against SCSH totalling £14,180. In January 2018 HMRC issued Regulation 13 Determinations totalling £301,521 in respect of tax years 2014/15 and 2015/16. Financial statements for SCSH filed at Companies House for the years ended 31 July 2016 and 31 July 2017 each show a deficit of Shareholders Funds of £136,305 and £28,670 respectively. At a meeting with a steering committee of investors on 23 February 2018 SCSH offered to pay reduced guaranteed returns. Returns were paid to investors at the reduced rate until this offer was ultimately rejected on 08 March 2018. Transactions after 08 March 2018 Between 08 March 2018 and 12 November 2018 £237,407 was paid from SCSH bank account. Of this sum £62,705 was transferred to Linmari Construction Ltd ("LC") and £47,002 was transferred to Fox Street Village Ltd ("FSV"). Transfers received from LC and FSV by SCSH during the same period totalled £20,013, therefore net transfers out to LC and FSV totalled £89,469. I was the sole director of LC and FSV during this period. On 18 June 2018 SCSH made a payment of £17,000 to Fortis Development which had the reference 'Linmari'. It is not known if this payment was made on behalf of LG or LC. On 04 July 2018 SCSH made a payment of £10,000 to a connected party. The connected party attended the meeting with the Investors' Steering Committee on 23 February 2018 and was said to represent 'Linmari Group'. Net payments made by SCSH to or on behalf of connected parties after 08 March 2018 totalled £116,469. No payments were made to HMRC after 08 March 2018. HMRC issued additional Determinations which resulted in a claim totalling £515,768 in SCSH liquidation. On 20 March 2018 SCSH made 3 payments totalling £3,104 to a single investor, which satisfied 2 of the CCJs which had been issued against SCSH. No other payments were made to any of the other investors after 08 March 2018. Investors' claims in the liquidation are estimated to be £1,203,948. Claims by HMRC and the investors are estimated to total £1,719,716 out of total liabilities to creditors totalling £1,794,726. My planned transfer of the freehold property owned by SCSH after 08 March 2018 caused a loss to the liquidation estate of £30,000.