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.

A restaurant owner in Manchester has been handed a five-year disqualification for being the director of a company after an investigation discovered that he had employed two illegal workers.

Mr Norman Musa, director of NMR Trading Ltd, was found to have failed the completion of background checks on the two workers that he employed, and did not complete immigration checks on employees.

The investigation took place after the Home Office Immigration Office visited the Manchester restaurant on 2 October 2014, and a large penalty was handed to the director which totaled £20,000. However, this fee remained unpaid when the company went into liquidation on 15 December, the same year. The company had an estimated deficiency of £66,097 at this time.

An official spokesperson for the Home Office commented:

“Illegal working is not victimless. It undercuts honest employers, cheats legitimate job seekers out of employment opportunities and defrauds the taxpayer.

Businesses should be aware that they have a duty to check that their staff have permission to work in the UK.

We are happy to work with employers who play by the rules but those who do not should know that they will not go under our radar.”

As a result of the ban, Mr Musa is unable to take part in the formation, promotion or management of a limited liability partnership or company, and is also unable to be the receiver of a company’s property. Mr Musa is under the disqualification for five years, and is also banned from other activities such as becoming a company secretary, as well as becoming a member of the police authority.

Two directors of companies have been handed a disqualification totaling 26 years after they were found to be selling land as an investment, yet had no value.

Mehmet Hunsu and Ali Seytanpir’s scamming business activity were discovered after an investigation by the Insolvency Service and HM Revenue and Customs took place. Both companies, known as OFG Investments Ltd (OFG) and GIG Properties Ltd (GIG), had been found to market and sell investment land that belonged to another company. The land was on a former WWII airfield in the Devon area on an investment commission.

However, the investors that fell into the scam were told that the land had opportunity for development and appropriate planning permission but in reality, it didn’t. The local authority would not allow the permission for housing and/or commercial development that gave a good return for investors, despite the scam company’s literature telling otherwise. Brochures, salespeople acting on behalf of the company and the website suggested that the land would give a good return on their investment due to this.

The investigation revealed that the companies made sales to investors that totalled £2,209,296. Neither companies owned the land, and by agreement with the owner, they made commission in excess of 85%.

Anthony Hannon, the Official Receiver in the Public Unit Interest, commented:

“While land can be a viable investment, it should have been clear to the directors from the local authority’s published plan that there was no likelihood of planning permission being granted at the location, and so there was no viable exit strategy for the so called investments.”

Mr Husnu has been handed a disqualification of 14 years commencing in January, whilst Mr Seytanpir was handed a 12 year ban that commenced on 12 January.

Due to the disqualification, neither scammer is able to act as director of a company, be the receiver of a company’s property or take part in the formation, management or formation of a company or limited liability partnership.