Director of Foreign Exchange Limited gets 12-year ban
Investigators uncovered that, between October 2013 and October 2016, Frank Deal had caused the company to misappropriate client funds totalling almost £2.5 million.
The UK Insolvency Service has announced that Frank Deal, director of Foreign Exchange Limited, formerly known as Yenom Incorporated Limited, got 12-year disqualification due to abuse of client funds.
Foreign Exchange Limited was incorporated in September 2003 and based in Croydon. Some 14 years after its incorporation, the foreign exchange company experienced trading difficulties and entered administration in November 2016 before entering liquidation in September 2017.
An Insolvency Practitioner was appointed to handle the company’s affairs before making the Insolvency Service aware of the conduct of the director, Frank Deal. When investigators examined the company’s dealings, they found that, between October 2013 and October 2016, Frank Deal had caused the company to misappropriate client funds totalling almost £2.5 million.
In total, 31 customers have approached either the police, administrators and the Insolvency Service claiming funds they had transferred to Foreign Exchange Limited never reached the intended recipient accounts and were never returned. Moreover, at least seven clients said that Frank Deal provided fraudulent bank transfer remittance receipts showing funds transfers that, in reality, never took place.
Under the ban, Frank Deal is not able, directly or indirectly, to be involved in the promotion, formation or management of a company.
David Brooks, Chief Investigator for the Insolvency Service, said:
“Frank Deal’s clients expected a level of risk when making their investments but did not expect that risk to come from the company’s director. Many lost tens of thousands of pounds as a result of Frank Deal’s conduct. This ban will prevent him from causing further financial harm for a significant period, and serves as a reminder to other directors that this conduct will not be tolerated”.