AN ASIAN couple has been sentenced for breaching a disqualification order by operating companies in the UK for more than five years despite a ban linked to tax fraud claims.
Bharat Jogia, 71, from the West Midlands, had been disqualified as a company director for 13 years in 2014 after not disputing that he caused Jogia Jewellers (UK) Limited to wrongfully claim more than 2 million pounds from HM Revenue and Customs (HMRC).
The UK's Insolvency Service found that he continued to control pharmaceutical firms Diamond Pharma Limited and BHJ Consulting Ltd despite the ban.
His wife, 57-year-old Louise Jogia, was found to have "aided and abetted" him in breaching the disqualification and acted as the official director of BHJ Consulting.
“Bharat Jogia showed complete contempt for the law by breaching his director disqualification ban for more than five years," said Mark Stephens, Chief Investigator at the Insolvency Service.
“Louise Jogia acted as a front to shield her husband, providing signed documentation and support where needed.
“Ignoring a disqualification is a serious criminal offence that undermines the entire system designed to keep rogue directors out of positions where they can cause further harm to creditors, employees and the wider economy," he said.
Stephens said director disqualifications exist to protect the public and maintain confidence in UK businesses.
“When someone is banned from running companies, it is because they have proven themselves unfit to do so," he added.
Jogia’s disqualification order was meant to stop him from running, managing or promoting any company until 2027. He was sentenced to nine months in prison, suspended for 18 months, when he appeared at Birmingham Crown Court last week.
He was also ordered to complete 100 hours of unpaid community work and disqualified as a company director for another 10 years.
Louise Jogia was sentenced to seven months in prison, also suspended for 18 months, at the same hearing, and disqualified as a company director for 10 years.
The suspended sentence means the couple has avoided immediate custodial terms, provided they commit no further offences and follow court-imposed community requirements.
Jogia, based in Streetly near Birmingham, signed a disqualification undertaking in June 2014.
In the document, he did not dispute that he caused Jogia Jewellers (UK) Limited to take part in transactions that formed part of a scheme to defraud HMRC.
The undertaking meant he could not act as a director of any UK-registered company or be involved in forming, marketing or running a company.
However, he continued to run Diamond Pharma Limited and BHJ Consulting Ltd in all but name from the time of his disqualification until August and July 2019 respectively, shortly before liquidators were appointed.
The Insolvency Service said its investigation found that Jogia instructed lawyers on conveyancing matters, approved company accounts, authorised agreements with customers and suppliers, managed staff, and received more than 80,000 pounds in consultancy services for Diamond Pharma Limited.
“Under Jogia's management, Diamond Pharma Limited also racked up more than 445,000 pounds in tax debts, leading to HMRC applying to have the company wound up," it said.
“For BHJ Consulting Ltd, Louise Jogia provided the trading history to the liquidator by email, noting that she and her husband set up the company 'as a consultation service to the pharmaceutical industry'. However, matters which, as a director, Louise Jogia would be expected to deal with, such as instructions to lawyers on conveyancing matters, the company's IT decisions and payment to creditors, were all dealt with by her husband," it noted.
Analysis of BHJ Consulting Ltd’s bank account showed it was used to pay personal bills for Bharat and Louise Jogia.
The Insolvency Service said it is seeking confiscation of funds against the Jogias under the UK's Proceeds of Crime Act 2002.
(With inputs from agencies)
