Credit, Collections & Insolvency News
A financial controller has received a lengthy bankruptcy restrictions order following a trial for diverting funds from her employer to herself. The 13-year Bankruptcy Restriction Order made on 15 February 2018 against Chasjit Verma of Romford, Essex, followed an investigation by the Insolvency Service.
Chasjit Verma was made bankrupt on 4 March 2016, having presented her own petition. On the day of her petition, Chasjit Verma showed she owed £243,903, with £164,507 going to her former employer. But in making the bankruptcy restrictions order, the court accepted evidence presented by the Insolvency Service, which showed that the significant sum owed to her former employer was as result of Chasjit Verma abusing her position of trust as a financial controller by misappropriating funds.
The court heard evidence that Chasjit Verma was employed as a financial controller by the Jubilee Hall Trust Limited in July 2003 and her duties were extended to a related company, Jubilee Hall 2000 Limited. As financial control, Chasjit Verma held a position of trust with her former employer and provided book-keeping services, including paying suppliers and providing information to the Management and Trustees of Jubilee Hall Trust Limited’s external accountants.
But between 2 April 2015 and 3 November 2015, Mrs Verma initiated unauthorised payment transfers totalling £164,507 from her employer’s bank accounts to bank accounts which were not legitimate consultants engaged by the Jubilee Hall Trust Limited or Jubilee Hall 2000 Limited.
The funds were transferred to Chasjit Verma’s accounts or accounts controlled by her and this breached the duty of trust she owed to companies whose funds she has access to, by virtue of her position.
Laura Nicholls, the Official Receiver, said”Mrs Verma held a position of trust with her former employer, which she subsequently breached by carrying out actions of dishonesty. The Insolvency Service looks closely at individuals and takes action where wrongdoing is uncovered. These proceedings should serve to protect the public from future misconduct by restricting Mrs Verma from obtaining credit and acting in the management of a company.”
The period of restrictions is in the top bracket, the maximum being 15 years, to reflect the seriousness of the case. The order means Mrs Verma is therefore bound by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until 2030. In addition, she cannot manage or control a company during this period without leave of court.