A Berkhamsted exchange agent and his partner have been banned from running companies for 12 years after securing more than £9million from clients, only to use the funds to pay back previous clients.
Peter John Roebuck, 65, from Berkhamsted and Preston-based Francis Edward Tarling, 75, were directors of a company called Concept Consultancy Services Limited (CCS).
Between May 2011 and May 2016, the company entered into Private Loan Agreements, with clients worth at least £9.1million.
Clients were promised that their funds would be used by a third party to conduct forex trades and CCS would make returns to the client to meet monthly interest and loan repayments.
But the company began to struggle and in September 2017, CCS entered into administration before being liquidated in August 2018.
The Insolvency Service then discovered several instances of misconduct. Investigators established that £9.3million of client funds were paid into two of CCS’s bank accounts. However, at least £8.4million was used to meet the interest and loan repayments of earlier clients.
Further enquiries discovered that at least 15 investors who entered into loan agreements after September 2015 received no repayments from the company.
At the date of the company’s administration, the foreign exchange firm had no funds in its bank account and owed at least £11.2million to 204 clients, who were expecting contractual interest and loan repayments.
Roebuck and Tarling are now banned from acting as directors or directly or indirectly becoming involved in the promotion, formation or management of a company for 12 years.