A LEYLAND man has been disqualified from acting as a company director for three years after his Salford-based company was placed into receivership, owing £1.3 million.

Clifton Lawrence Thomas Mullaney, formerly of Fiacre Barn, Croston Road, cannot take part in the promotion, formation or management of a company for that period.

The decision was made at the Manchester District Registry of the High Court on February 18.

The order was made in respect of his conduct as a director of the Financial Services Group plc and Centre Mortgage Services, a subsidiary of the group.

The court found that Mr Mallaney, who now lives in America, continued to trade as a group, long after knowing that it was insolvent.

He failed to ensure that receipts of £115,000 from the issue of shares to investors were properly applied for the purposes of the company.

Mullaney also allowed other directors to lie to investors, to trick them into buying preference shares, and he and his fellow directors received at least £103,795 within the space of 22 months.

The accounts of the company were not prepared and filed in accordance with the requirements of the Companies Act.

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