A disgraced company director from the Midlands has been sentenced to four
years imprisonment for theft and fraud offences following a prosecution by the
Department for Business, Innovation and Skills. He was also disqualified from
being a company director for ten years.
Paul Mulholland of Kings Bromley, Staffordshire, stole £121,425 from BI
Industries (Holdings) Ltd where he was sole director. The money was paid to
BI Industries by the European Commission to coordinate a research project to
develop an alternative thickening agent to gelatine.
the company’s bank to transfer the money to another company account, held by
Shobwood Engineering, of which he was also a sole director. Both companies
went into liquidation. The monies were not recovered.
Mr Mulholland also pleaded guilty to eight counts of fraudulently removing
funds from Elson Industries Ltd where he was, again, sole director. The
charges represent removals, totalling £931,157, made by Mulholland prior to
the company going into liquidation with debts of £234,297.
On passing sentence at Wolverhampton Crown Court, Recorder John Steel QC
said that Mr Mulholland had breached the trust of banks, the EU and their
research and development partners, and the HMRC. He also said that the
defendant’s conduct involved self-enrichment and the “detection of these
matters prevented the denting of public confidence in the business
community.” The judge said that he had no alternative but to impose an
immediate custodial sentence.
1. Paul Mulholland was found guilty on 9 July 2010 of the following charges
at Wolverhampton Crown Court:
(a) One charge of theft contrary to section 1 Theft Act 1968.
(b) Eight charges of fraudulently removing funds from Elson Industries
Limited, contrary to section 206(1)(b) and (6) Insolvency Act 1986. The
(1) 12 Oct 2004 - £295,000
(2) 28 Oct 2004 - £50,000
(3) 4 Feb 2005 - £3,750
(4) 7 Feb 2005 - £3,500
(5) 24 Mar 2005 - £45,000
(6) 27 Apr 2005 - £463,520.94
(7) 29 Apr 2005 - £50,387
(8) 17 May 2005 - £20,000
2. Mr Mulholland was sentenced on 13 September 2010.
Article Published/Sorted/Amended on Scopulus 2010-09-15 10:54:44 in Business Articles