A director of Maple Grow Limited, Mahmood Anwar Yaqub, has been disqualified from being a company director or in any way managing or controlling a limited company by Birmingham County Court for 15 years, following an investigation by the Insolvency Service.
The investigation found that Mr Yaqub, 48, and other directors of the company obtained mortgage advances of almost £1.8 million on six properties which they knew were worth less than £1 million.
Between 19 December 2007 and 29 January 2008, three of the five directors obtained mortgage valuations in the total sum of £2,590,000 in respect of six properties. On 28 February 2008, these three directors obtained advances in the total sum of £1,767,500 from Yorkshire Bank in respect of these six properties. Mr Yaqub knew that these properties had a combined value of around £962,232, the properties having previously been purchased by Mr Yaqub and/or his associates from independent third parties between 19 December 2007 and 28 February 2008.
The properties have subsequently been sold for less than £600,000.
Maple Grow Limited went into administration on 26 March 2009 with liabilities of around £3.5 million.
Yaqub’s disqualification came into effect on 14 December. Four other directors of Maple Grow Limited have already offered disqualification undertakings totalling 32 years to the Secretary of State.
Claire Entwistle, director of Company Investigations North, said: “The order given by Birmingham County Court in respect of Mahmood Anwar Yaqub sends a clear message to other company directors if you run a business in a way that is detrimental to either its customers or its creditors you will be investigated by the Insolvency Service and removed from the business environment.”””