EXECUTIVE NEWS
AWARD-WINNING HIRER ADMITS FRAUD: ‘PRE-PACK’ CONFIRMED
We are immensely proud of our annual Passionate Hirer Awards and, since their inception in 2008, we have consistently highlighted companies which operate to the highest standards and demonstrate outstanding industry practice. Our 2016 winner was Yeovil-based YHC Hire Services Ltd, which was trading as YHC Hire Solutions. In our interview with MD Andy Parker, published in June that year, he commented, “We regard ourselves as ambitious and entrepreneurial, able to seize any opportunity quickly.”
Sadly, we now have to report that Andy Parker’s fine words three years ago may have got the better of him. On 25 October, he was sentenced at Taunton Crown Court to ten months in prison, suspended for 18 months, having pleaded guilty to an attempted VAT fraud. He was also ordered to carry out 240 hours of unpaid work.
The details, as published on the Somerset Live website, make for sorry reading. Ignoring the sensational newspaper comments, the facts are that, between 1 October 2018 and 14 March this year, Andy Parker submitted seven high value doctored invoices for goods totalling £948,720 from the same supplier, in an attempt to fraudulently claim almost £150,000 in VAT. HMRC became suspicious and launched an investigation, which discovered the faked documents.
Andy Parker’s lawyer argued that YHC Hire Services Ltd had faced significant cash flow difficulties after receiving a £600,000 tax bill following poor financial advice. The amount was later reduced to £400,000 on appeal, but Andy Parker was only able to raise £250,000, leaving a near £150,000 shortfall. In sentencing him, the Judge said the crime was so severe that it would normally have resulted in a custodial sentence.
Companies House latest
Inevitably, this led to Andy Parker’s resignation as a Director of YHC Hire Services Ltd. According to Companies House, he resigned on 30 September, just five days after he was found guilty in Yeovil Magistrates Court. Andy’s brother, Ashley Parker, who is Manager at YHC’s Yeovil depot, was re-appointed a Director of that company on 25 September, having resigned back in April 2011.
Events have moved swiftly since. Companies House reveals the formation of a new company just eight days before Andy Parker’s
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Crown Court sentencing. The new limited company name is Purple Hire Solutions Ltd. The Directors of this company are Ashley Parker, with Adrian Philip Rozario, a new name in this unfolding drama, as Finance Director. Two other people registered as ‘active persons of significant control’ are Andy’s and Ashley’s wives.
In response to this information, the original version of our article read, ‘The formation of a new company so close to his sentencing is a worrying development, and we must hope that the new Directors are not transferring assets from one company to another ahead of a ‘pre-pack’ sale.’
Our worst fears were realised a day or so later. On 30 October, it was confirmed that, one day - repeat one day - after Administrators were appointed, they completed a ‘pre-pack’ sale of the business to Purple Hire Solutions Ltd. The new company’s acquisition of the business and assets of YHC Hire Services Ltd was then confirmed to suppliers on 4 November.
Attempting to conclude this scandal on Bonfire Night as we go to press, the first conclusion is that Andy Parker has acted shamefully. His own reputation has gone up in flames, as has that of his company. We have no idea, as yet, of the amounts of money that creditors have lost as a result of this ‘pre-pack’ sale. No doubt we’ll know more in the days and weeks ahead.
Last line. For now. We demand the safe return of our Award, last seen hanging on Andy Parker’s office wall during our interview in April 2016.
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