This week, three-time bankrupt Terence Kenneth Freeman (formerly known as Terence Kenneth Sparks), had his ban from acting as a company director extended following an investigation into the affairs of GFX Capital Markets Ltd (GFX), a spot foreign exchange trading company.
The Insolvency Service investigation found that while he was still an undischarged bankrupt and already disqualified as a director, Mr Freeman set up GFX , became its director and had sole overall responsibility for the company’s currency trading activities. GFX traded from around June 2006 until January 2009, however, in late 2008 clients of the company became concerned when it failed to satisfy their demands for the return of their funds.
Commenting on Mr Freeman’s disqualification, Stephen Speed, Chief Executive of The Insolvency Service said;
“The public and other company directors should be reassured that The Insolvency Service has robust powers which we will not hesitate to use to protect consumers from directors like Mr Freeman who ignore the terms of their disqualification and go on to commit serious misconduct.”
Freeman claimed that GFX lost around 75% of its trading capital in one day in September 2008 due to the volatility of market conditions. In March 2009 a dissatisfied investor petitioned for the company to be put into liquidation, and investor claims in the liquidation total over £17 million.
This most recent disqualification means that Mr Freeman is prohibited from being concerned in the management of any company until September 2025.
At this time it is not known whether any investors will get their money back.
Notes to editors
1 Terence Kenneth Sparks was originally disqualified from being a director for 15 years on 21 March 1997 in respect of a previous failed company. This disqualification was due to end on 20 March 2012. The disqualification was made under his former name of Terence Kenneth Sparks.
On 11 July 1994 Mr Freeman was adjudged bankrupt for the third time (under his former name), he remained un-discharged from that bankruptcy until 1 April 2009.
2 GFX Capital Markets Limited went into compulsory liquidation on 13 May 2009.
3 On 17 August 2010 Terence Kenneth Freeman signed a Director Disqualification Undertaking banning him from being a director of a company for a period of fifteen (15) years. The period of disqualification commences on 16 September 2010. Directors who are disqualified may apply to the court for leave to act as a director in certain circumstances. No such application was made in this case.
4 Disqualification undertakings were introduced in April 2001, they are an administrative equivalent of a disqualification order but do not involve court proceedings. Without specific permission of a court, a person with a Company Director Disqualification, including Undertakings, cannot:-
act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.
Further information on director disqualifications and restrictions can be found at http://www.insolvency.gov.uk/directordisqualificationandrestrictions/whatisdisqualification.htm
5 The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
6 Media enquiries should be directed to: -
Denise Rawls, Press Office Manager 020 7674 6910
Ade Daramy, Press Officer 020 7596 6187
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