Kings Langley-based Drawntear Limited claimed in accounts that it marketed adult movies, but no evidence was provided about how the company traded or who controlled its business activities.
Investigations showed the company appeared to take direct debits from consumers without their knowledge or authorisation, leading to a hearing at Manchester High Court on Wednesday, February 12.
The company, which said it was based in Hull before moving its registered office address to Kings Langley, failed to co-operate with investigations by the Insolvency Service.
Evidence found those behind the company were actually based in the Czech Republic and Monaco.
David Usher, Chief Investigator at the Insolvency Service, said: “There was a complete lack of transparency over who controlled Drawntear, the real nature of its trading activities, and unexplained payments of more than £280,000 from its bank account.
“We were concerned that the company was being used as a vehicle for fraud and the absence of any accounting records meant it was necessary for us to take decisive action to prevent further harm to the public.”
Attempts by the Insolvency Service to establish the true nature of the company’s trading activities were met with insufficient co-operation.
The failure to produce accounting records also meant that payments into Drawntear’s account of £283,098 and receipts of £294,234 were not explained.
Complaints from consumers indicated that the company was taking direct debit payments without their permission.
In one example, a complainant identified recurring payments of £29.99 from their bank account to Drawntear which they were unaware of authorising.
The Official Receiver has been appointed as liquidator of Drawntear Limited.
Photo: Wikimediacommon
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