Gwyn Merion Roberts, the director of car dealership Menai Vehicle Solutions Limited in Bangor, has been disqualified from running or being associated with a business for 10 years, after customers were left nearly £1m out of pocket.
The company, that was based in Parc Menai, took money from customers but then failed to provide the vehicles that had been paid for, it also failed to pay customers for vehicles sold on their behalf.
The Insolvency Service banned Roberts from being involved with a company. It means he cannot be directly or indirectly involved in the promotion, formation or management of a firm for a decade.
Menai Vehicle Solutions went into liquidation on 21 October 2015, owing at least £1,250,000 to customers and other creditors.
The Insolvency Service‘s investigation concluded that Menai operated a practice where it sold new vehicles to members of the public for less than the cost incurred by the company in purchasing them from dealers. This encouraged new custom but inevitably resulted in Menai becoming unable to meet its liabilities, resulting in new customer deposits being used to finance the purchase of vehicles for older customers. The business model was unsustainable and the dealership failed to provide vehicles to customers who had paid for them.
This resulted in losses to at least 40 members of the public totalling at least £969,011. Robert Clarke, chief investigator at the Insolvency Service, said: “This is an unfortunate case in which members of the public suffered significant losses as a consequence of the inexcusable financial practices adopted by Mr Roberts. The lengthy period of disqualification is testament to how seriously the Insolvency Service views this misconduct.”