Director banned for ten years over £4.3m false invoice scam

The director of a financing company has received a ten year ban after heading a false invoice scheme to secure £4 million of illegitimate funds.

Related topics:  Finance News
Rozi Jones
8th October 2018
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"He clearly controlled all the companies he colluded with to raise millions of pounds worth of false invoices."

First Capital Factors would buy a company’s invoices to provide them with advanced finance, using secured funding from other companies.

However, one of FCF’s funders spotted irregularities within the portfolio and sought advice from a business advisory firm in August 2016, who agreed that these concerns within FCF’s loan book.

An investigation found that the firm's director, David Marsden, had instructed a number of his clients to produce false invoices before submitting them to secure illegitimate funds.

Marsden fraudulently secured close to £4.3 million before transferring money from FCF to other companies he was connected with in order to avoid paying his creditors.

Andrew Marsden is now banned for 10 years from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

Martin Gitner, deputy head of insolvent investigations for the Insolvency Service, said: “All the evidence pointed to Andrew Marsden orchestrating the scheme and he clearly controlled all the companies he colluded with to raise millions of pounds worth of false invoices.

“His substantial ban will protect other creditors from suffering losses and improve standards in the marketplace. It should also act as a deterrent to others who may be tempted to misuse invoice finance facilities in order to secure illegitimate funds.”

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