Case details for Mordechai BLUMENBERG

Name: Mordechai BLUMENBERG

Name: Bootique Limited

Date of Birth: 31 / 3 / 1981

Date Order Starts: 27 / 11 / 2018

Disqualification Length: 2 Years 0 Month(s)

CRO Number: 06980628

Last Known Address: 75 Summit Estate, Portland Avenue, , , LONDON, N16 6EX

Conduct: 1. Mordechai Blumenberg (“Mr Blumenberg”) failed to ensure that Bootique maintained or preserved adequate accounting records and/or in the alternative failed to deliver up to the liquidator such records as were maintained for the period 01 September 2012 to 05 February 2015, the date of liquidation. As a result of this failure it has not been possible to: a) Establish the nature of the business. b) Confirm that unidentified cheque payments totalling £3,185,709.54, made between 18 September 2012 and 02 February 2015, were in respect of bona fide company expenses. c) Deduce the source of income into the company’s three bank accounts totalling £6,380,503.59 which includes £279,706.00 cash during the period 01 September 2012 to 05 February 2015. d) Determine if between 19 September 2012 and 04 February 2015 at least 113 loan credits and 108 loan debits totalling at least £609,938 and £681,249 respectively were genuine business related transactions. e) Determine the source and reasons from 05 February 2015, the date of liquidation until 26 March 2015 for £65,314.02 debited and £53,449.69 credited to the three company bank accounts. f) Determine the cause of failure and the exact circumstances in which the estimated deficiency to creditors of £210,795 as per the sworn Statement of Affairs arose and whether this came about entirely as a result of genuine trading losses. g) Ascertain the exact date when trading ceased and all transactions around that time are accounted for and asset dispositions verified. h) Establish the correct Value Added Tax (“VAT”) liability position at liquidation, Bootique having failed to submit requisite VAT returns during the entirety of its trading. HMRC’s VAT final claim was therefore based on assessments. i) Establish, in the absence of any payroll information any staff details including amounts paid to them and whether amounts were due to HMRC in respect of unpaid Pay As You Earn/National Insurance Contribution (“PAYE/NIC”) for Bootique at the date of its liquidation. j) Determine the amount of remuneration received by him and his co director during Bootique’s entire period of trading. k) Determine that all of Bootique’s assets were disclosed in the statement of affairs and in particular, to determine what value of stock and debtors was present at the date of liquidation and the full and true value of any items transferred or otherwise disposed prior to liquidation. l) Verify, in the absence of an investment/loan agreement and/or correspondence, the monies invested/loaned to the company in October 2012 which remained outstanding at the date of liquidation. m) Deduce the reasons for Bootique’s failure. 2. He failed to ensure that Bootique complied with its statutory obligations to submit all returns, and make payments, as and when due to HMRC in respect of VAT from the first period being March 2010 to liquidation and traded to the detriment of HMRC from 7 May 2010. In particular: VAT a) Bootique applied to register for VAT on 12 January 2010. b) Bootique failed to submit any VAT returns to HMRC during the entirety of its trading and consequently HMRC raised assessments. c) At the date of liquidation, Bootique’s VAT returns were therefore outstanding for approximately 56 months. d) Bootique made five payments to HMRC of £509, then £451 on 08 February 2012, £448 on 08 February 2012, £10,000 on 05 September 2014 and £10,000 on 3 October 2014 in respect of its VAT liabilities. e) At liquidation, HMRC submitted an interim proof of debt of £94,221.69, of which £83,121.69 related to VAT and £11,100 related to Corporation Tax. COMPARATIVE TREATMENT Bank Analysis 3. From 1 September 2012 to liquidation £6,380,503.49 was credited to whilst £6,398,133.79 was debited from Bootique’s three bank accounts. According to the information provided by HMRC, during this period Bootique made two payments to HMRC of £10,000 each in relation to VAT on 05 September 2014 and on 03 October 2014. No further payments were made by Bootique in respect of its accruing VAT liabilities. 4. At liquidation known creditors total £246,451 - £140,000 is claimed by an investor, although no supporting evidence has been provided. 

This information is correct as at 6 / 11 / 2018

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