Case details for STUART MCDONALD

Name: STUART MCDONALD

Name: Northern Motors (Aberdeen) Ltd

Date of Birth: 31 / 1 / 1982

Date Order Starts: 30 / 1 / 2019

Disqualification Length: 7 Years 0 Month(s)

CRO Number: SC304494

Last Known Address: Rambala, Dyce Drive, Dyce, , ABERDEEN, AB21 0HP

Conduct: From at least September 2014, when a complaint was received by Trading Standards to 02 March 2016, when an Enforcement Order under the Enterprise Act 2002 was granted to Trading Standards, Mr Stuart McDonald (“Mr McDonald”) caused Northern Motors Limited (“NML”) to breach the terms of the Enterprise Act 2002 by trading in practices harmful to consumers and caused losses to consumers in sums totalling at least £111,000, which remained outstanding when the company ceased to trade on or around 08 August 2016 and subsequently entered liquidation. In that:

  • By September 2014 Trading Standards had warned legal action against Mr McDonald which resulted in his prosecution for unfair trading practices during August 2014 to which he pled guilty on 12 April 2016. He was therefore aware that action was being taken against him in relation to his trading practices by September 2014.
  • Between September 2014 and March 2016 Trading Standards received at least 29 further complaints from customers of NML in respect of the following matters; 1. The sale of motor vehicles to consumers while finance remains outstanding on the motor vehicle. 2. Failing to honour payments to consumers for vehicles purchased. 3. Failing to provide the appropriate Driver Vehicle Licensing Agency (”DVLA”) V5 registration documents at the time of the sale of motor vehicles in the course of business. 4. Sale of illegal goods in terms of applying the incorrect registration plate for those motor vehicles. 5. Failing to honour promises to timeously register with the DVLA the transfer of ownership in vehicles received in the course of business.
  • The conduct of Mr McDonald resulted in Trading Standards obtaining an Interim Enforcement Order on 02 March 2016, followed by a final Enforcement Order on 18 August 2016 which required Mr McDonald to desist in trading practices harmful to consumers. On 08 August 2016, when NML had ceased to trade Mr McDonald caused NML to dispose of a property to a connected party, for a sum of £265,000 of which at least £116,083 was to the detriment of creditors and this transaction resulted in the insolvency of NML. In that;
  • At 08 August 2016, sums totalling at least £80,552 were outstanding to HM Revenue and Customs (“HMRC”) and sums totalling at least £111,000 were outstanding to various other creditors.
  • From the £265,000, the solicitor acting in the sale has disclosed that £50,000 was deducted in respect of a loan given to NML by the connected party. In the absence of any company records, bank statements or explanations from Mr McDonald, it is not possible to verify the details of the loan, any repayments to the connected party or what the terms of the loan were.
  • From the remaining funds, £96,024 was paid to the Bank of Scotland in respect of security over the property, and after other fees and outlays, the balance of £116,083 was paid directly into Mr McDonald’s personal bank account. The disposal of this asset was to the detriment of creditors, and to the benefit of Mr McDonald directly.
  • The free proceeds of £116,083 were paid into Mr McDonald’s personal bank account and while in the absence of any company records, sales invoices, bank statements or explanations from Mr McDonald, it is not possible to determine what happened to the funds after they were paid to Mr McDonald, amounts totalling at least £80,552 had been accruing to HMRC from June 2013 and amounts totalling at least £111,315 were outstanding to other creditors. 

    This information is correct as at 30 / 1 / 2019



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