VAT Fraud | Director Disqualification | Kangs Solicitors


Last month, it was reported by the Insolvency Service that Mark Cook (‘Mr Cook) ,a Director of Crouch Commodities Ltd (‘Crouch Commodities’),  had been disqualified from acting as a director of any company for a period of fifteen years.

This penalty arose from the fraudulent evasion of VAT by Crouch Commodities.

Timothy Thompson of Kangs Solicitors briefly examines the case.

The Insolvency Service | Director Disqualification Proceedings | Kangs Solicitors

The Insolvency Service exercises its enforcement powers to investigate  any company which defrauds  the public purse and creditors generally and to disqualify any director(s) found to be culpable.

Crouch Commodities | Kangs VAT Fraud Team

Crouch Commodities,  through Mr Cook, had been involved in Missing Trader Fraud, otherwise known as a Carousel Fraud, in circumstances where Mr Cook  either ‘knew or should have known about’ the fraud that was being perpetrated.

The Public Interest Unit of the Insolvency Service uncovered the fact that Mr Cook, through Crouch Commodities,  had illegally claimed VAT  repayments amounting to approximately nineteen million pounds from the Revenue.

Crouch Commodities traded in wholesale mobile phones, a market known to be rife with VAT fraud and, even if Mr Cook was not aware of this, he ought to have been.

There is a legal requirement to conduct due diligence by processing one or more of a series of checks designed to indicate whether or not a fraud is being perpetrated.

However, ‘the ultimate question is not whether the ‘trader’ exercised due diligence but rather whether he should have known that the only reasonable explanation for the circumstances in which his transaction took place was that it was connected to fraudulent evasion of VAT’.

It should have been clear to Mr Cook that hallmarks of VAT fraud were evident.

Accordingly, the failure to take adequate precautionary steps to reduce risks of involvement in transactions connected with VAT fraud, resulted in the Company submitting fraudulent VAT returns resulting in significant loss to HM Revenue & Customs.

As stated above, Mr Cook was disqualified from acting as a director of any company for fifteen years.

VAT Fraud | Insolvency | Kangs Insolvency Team

Kangs team of Insolvency Solicitors can provide you with the necessary advice and guidance in relation to all aspects of fraud and insolvency problems.

Director Disqualification Solicitors

Tax and Serious Fraud Solicitors

Who Can I Contact For Help? | Kangs Solicitors

You can rest assured in the knowledge that our lawyers can protect you in proceedings that have a tendency to cross-over from civil to criminal proceedings.

Please feel free to contact any of the below lawyers who will be happy to provide you with some initial advice and an informal chat about any of the issues in this article which  may be of interest to you.

Hamraj Kang
07976 258171020 7936 6396 | 0121 449 9888

John Veale
0121 449 9888 | 020 7936 6396

Tim Thompson
0121 449 9888 | 020 7936 6396 | 07710 67 77 67


News insights, Serious Fraud, Services
A former Labour MP, Jared O’Mara, has received an immediate custodial sentence of four years having been found guilty, following his trial, of six counts of fraud relating to false expenses claims for work that he never carried out in respect of jobs that did not even exist. For further Press details please follow the […]
Criminal Litigation, News insights, Services
Kangs Solicitors has recently successfully defended a client facing an allegation of assault occasioning actual bodily harm arising from an incident forced upon him whilst he was simply conducting his  business, running a restaurant in London’s West End, when confronted with an unsavoury situation. Kangs Solicitors was instructed from the onset attending the interview under caution at Charing […]
Insolvency, News insights, Services
Kangs Solicitors has been instructed to defend claims against our client alleging breaches of Section 212 and 213 of the Insolvency Act 1986. The claims are being brought by the joint liquidators of our client’s company on the basis that our client allegedly knew that he and his company were participating in ‘Missing Trader Intra- Community’ Fraud’ […]

Get in touch