A diamond investment seller who sold coloured diamonds for highly inflated prices has been disqualified as acting as a company director for a total of 14 years.
Mr Daniel David Edgar was discovered to be selling the diamonds following an investigation by the Insolvency Service whilst acting as a designated member of the company Reco Commodities LLP (Reco). The fraudulent company found itself in the High Court just two years before Mr Edgar’s disqualification after a confidential enquiry into the activity of the company was voiced.
It was found that the company in which Mr Daniel David Edgar worked for (Reco) operated by making telephone calls to potential investors and persuaded them to invest in their coloured diamonds. However, Reco’s company sold the items at hugely inflated prices, with the end conclusion resulting in the coloured diamonds not being suitable as an investment.
At the moment, it’s expected that the investors who fell for the scam are owed at least £433,155.10 between them.
Mr Mark Francis, another member of the partnership, was disqualified just three months prior to Mr Edgar’s ban for the same reasons.
Anthony Hannon, Official Receiver in the Public Interest Unit, commented:
“The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors whose companies defraud the public. This lengthy disqualification will protect the public and act as a deterrent to others.”
Whilst the ban of 14 years is in place, Daniel Edgar is unable to act as the director of a limited liability partnership or other form of company. He is also unable to participate in the formation, promotion or management of a company until the disqualification period has finished. His ban commenced on 15 March 2017, and will end in 2031. Mr Daniel David Edgar is unable to complete a range of other restrictions such as acting as an occupational pension scheme trustee without leave from the Pensions Regulator, or apply to the police authority in future.