Month: June 2018

The Charity Commission, the independent regulator of charities in England and Wales, has opened a statutory inquiry into Fazal Ellahi Charitable Trust. The inquiry was opened on 16 April 2018.

The charity’s objects include the education of all people, particularly children and young persons in the Muslim religion and the Urdu language, as well as the advancement of the Muslim religion through the provision of collective prayer meetings and otherwise.

The Commission removed the charity from the register in 2009, in accordance with its legal obligations under Section 34 of the Charities Act 2011. The trustees had failed to submit its annual financial accounts or respond to repeated correspondence from the Commission and therefore the Commission considered that it had ceased to operate. Despite its removal from the register, the charity continued to operate including running a mosque and religious classes for children.

Despite not being registered with the Commission, the charity remains under the Commission’s regulatory remit. The Commission engaged with the charity in 2017 after being made aware of offences committed by the Imam at the mosque operated by the charity. The offences resulted in a conviction of six counts of encouragement of terrorism and two counts of encouraging support for a proscribed organisation in relation to a series of sermons and classes for children he gave at the mosque.

The inquiry will examine the following regulatory concerns:

• the management and oversight of staff, use of the charity’s premises and safeguarding procedures by the trustees
• whether the trustees have properly exercised their legal duties and responsibilities under charity law in the administration of the charity
• the financial management of the charity, particularly in regards to maintaining and preserving accounting records
• whether there has been misconduct and/or mismanagement by the trustees, including failure to comply with the charity’s own governing document

The Commission has exercised its regulatory powers under section 76(3)(d) of the Charities Act 2011 to ‘freeze’ the charity’s bank account and under section 84A of the Act to direct the trustees not to take specified actions relating to activities at the charity which would constitute regulated activity.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the Commission are available on GOV.UK.

Ends

Notes to editors

1. The Charity Commission is the regulator of charities in England and Wales. To find out more about our work see the about us page on GOV.UK
2. Search for charities on our check charity tool
3. Section 46 of the Charities Act 2011 gives the Commission the power to institute inquiries. The opening of an inquiry gives the commission access to a range of investigative, protective and remedial legal powers
4. Regulated activity is work which involves close and unsupervised contact with vulnerable groups including children. The full legal definition of regulated activity is set out in Schedule 4 of the Safeguarding Vulnerable Groups Act 2006 as amended by the Protection of Freedoms Act 2012

‘Doris’, ‘Dave’, ‘Henry’, ‘Betsy’ and ‘Bumble’ were popular choices, with the largest proportion of those who said they named their car coming from the East Midlands (28%). The smallest proportion came from Northern Ireland, Scotland and Wales (1%, 3% and 6% respectively).

Women were almost twice as likely to give their car a name as men (65% and 35% respectively), with the majority of people who said they name their cars aged between 55 and 64 (41% within this age group said they gave their car a name).

The make, model, colour and ‘general look’ of the car were the common reasons given for the choice of name, with Fords, Vauxhalls, Toyotas, BMWs and Hyundais being the makes of vehicle most frequently given a name.

With 87% saying they had bought a personalised registration to match the name they give to their car, this could explain some of the obscure personalised registrations seen on cars.

DVLA Personalised Registrations sales manager Jody Davies said:

We sold DOR 1S, DAV 3S, HEN 2Y and HER 81E in the past, as well as personalised registrations where the meaning and significance seems much less obvious. It’s no surprise to find that people want to say something about their car in this way – whether the name is something personal to them or a bit of fun that they want to share with others.

Personalised registrations can be sold at auction for varying – and sometimes very large – amounts of money, but online they start from £250 so getting the ideal plate for your car could be less expensive than you may have thought.

In the last financial year 2017 to 2018, the sale of personalised registrations by DVLA raised over £160 million for HM Treasury. With around 50 million personalised registrations for sale on DVLA’s website, motorists can find out if their car’s name is available with just a few clicks.

Notes to editors

The personalised registrations referred to in the text were sold by DVLA at auction as follows:

• DOR 1S – £6,800 September 1990
• DAV 3S – £9,100 September 1999
• HER 81E – £7,000 January 2003
• HEN 2Y – £6,300 June 2005

The prices quoted above do not include VAT on the ‘hammer price’ listed; the buyer’s premium (+VAT) and DVLA assignment fees.

For the financial year 2017 to 2018, the sale of personalised registrations by DVLA generated £161,902,560 revenue for HM Treasury, including VAT and assignment fees.

Names that appeared more than once were:

• The Beast
• Betsy
• Bertie
• Bumble
• Dave
• Doris
• Henry
• Herb / Herbie
• Landy
• Sparky

The personalised registration depicted in the image, BR17 NEY is available for sale at the next DVLA live auction, taking place at the Oxford Belfry Hotel, Milton Common on 18, 19 and 20 July 2018, with a reserve price of £700 (plus fees).

Quoted statistics are based on responses to a DVLA survey.

Jo Harvey-Barringer, currently residing in Sussex, was the Chief Executive Officer and a director of Broken Rainbow LGBT Domestic Violence Service (UK) Limited (Broken Rainbow).

Broken Rainbow was incorporated in January 2004 to provide a telephone helpline service to members of the LGBT community who had experienced domestic violence, initially in London but also from premises in Manchester (from 2015).

The charity had various funding streams but relied heavily on funding provided by the Home Office. Home Office funding was not guaranteed and was often delayed causing cash flow issues.

At the start of 2016, following further delays in Home Office funding and a review of the charity’s financial stability it became apparent that payments had not been maintained to HMRC in respect of the charity’s PAYE debt.

In addition, charity Trustees had serious concerns over how it could continue to deliver its services and sought advice from an Insolvency Practitioner.

Following this, the charity was placed into creditors voluntary liquidation on 5 July 2016.

Between December 2014 and May 2016, payments amounting to £143,671 were made to Jo Harvey- Barringer, at a time when only £3,490 was paid in respect of the PAYE liability incurred during that period. This included a single payment of £12,500 made to her on 08 April 2016.

Anthea Simpson, a Chief Investigator with the Investigation and Enforcement Services, of the Insolvency Service said,

This ban should serve as a warning to other directors, particularly to those operating in the charity sector, that Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes.

Deliberate neglect of tax affairs whilst paying others is not a victimless action as it deprives the taxpayer of the funds needed to operate public services and if they put their own needs before them they could be investigated by the Insolvency Service and lose the privilege of limited liability trading.

On 6 June 2018, the Secretary of State accepted a disqualification undertaking from Jo Harvey-Barringer, after she admitted failing to make payments to HMRC, while continuing to make payments to herself and other creditors.

Her ban is effective from 27 June 2018 and lasts for 3.5 years and means that for the duration of the ban, she cannot directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company or limited liability partnership.

Notes to editors

Jo Harvey-Barringer, currently resides in Hove, Sussex and her date of birth is July 1968.

Broken Rainbow LGBT Domestic Violence Service (UK) (company registration number: 05009850) was placed into creditors voluntary liquidation on 5 July 2016.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7674 6910 or 020 7596 6187

You can also follow the Insolvency Service on:

• Twitter
• LinkedIn
• [YouTube](https://www.youtube.com/channel/UCcLiLoFYKt6sLLafxk1AplQ

David John Trathen [64] was the director of Rocco Primrose Limited (RPL) which developed housing on an old school site formerly owned by Plymouth City Council.

Formerly known as Trathen Lewis Limited, RPL was first incorporated in August 2013 and traded for around three and a half years before entering into creditors’ voluntary liquidation in April 2017 with an estimated deficiency of £416,353.

Independent insolvency practitioners were appointed to wind up the company but their job was made difficult by the fact that David Trathen failed to deliver adequate accounting records showing the true nature of the company’s business.

Further investigations by the Insolvency Service found that from at least June 2016 to the end of the business in February 2017, David Trathen failed to ensure that RPL maintained adequate accounting records.

This meant it was impossible to account for various payments out of the business, explain the source of credits to RPL’s bank account, what RPL owed to HMRC in taxes, as well as determining the amount of remuneration, if any, received by David Trathen.

In one example, investigators were unable to account for at least £141,000 of RPL’s income, generated from the sale of 20 building plots of land now known as Lilford Gardens – the former site of West Park Primary School in Wanstead Grove.

In another example, investigators could not explain why there had been more than £407,000 worth of expenditure from RPL’s bank account and whether this related to genuine company expenses.

And because of the lack adequate accounting records, investigators could not determine whether David Trathen’s statement of affairs in the liquidation was accurate and the real reason why RPL failed as a business.

As a result, the Secretary of State accepted a disqualification undertaking from David Trathen, and from 1 May 2018, he is banned from running companies, both directly and indirectly, for 8 years.

Dave Elliott, Head of Insolvent Investigations (Midlands & West) for the Insolvency Service said:

Directors have a duty to ensure that companies maintain proper accounting records, and, following insolvency, deliver them to the office-holder.

Without such records, it is not possible to determine whether or not a director has discharged his duties properly, or is using a lack of documentation as a cloak for other wrongdoing.

Notes to editors

Rocco Primrose Ltd (formerly Trathen Lewis Ltd) (CRO No. 8651577) was incorporated on 15 August 2013 and its registered office was at 6 Houndiscombe Road, Plymouth and it traded from 2 Mariners Court, North Quay, Sutton Harbour, Plymouth, PL4 0BS as property developers.

Mr Trathen was a director from 15 August 2013 onwards. The company went into creditors’ voluntary liquidation on 11 April 2017 with an estimated deficiency of £416,353.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

Contact Press Office

Media enquiries for this press release – 020 7637 6498 or 020 7596 6187

You can also follow the Insolvency Service on:

• Twitter
• LinkedIn
• YouTube