THE Burnley boss of a financial services firm, who raised £160,000 from the public for an ill-fated nightclub venture, signed promissory notes guaranteeing the investments.

And when the multi-million scheme to buy Ritzy's nightspot fell through, David Bodill failed to honour the liabilities and later entered into an individual voluntary arrangement with his creditors, says financial regulatory body, the Personal Investment Authority.

But because he failed to reveal the existence of the promissory notes when he applied for membership of the PIA in April,1994, the authority has ruled his firm, David Bodill Independent Financial Services, "is not fit and proper" and has been expelled from membership.

This means the business, based in Manchester Road, Burnley, is no longer authorised to conduct investment business, says the PIA.

The firm has been ordered to pay the costs of two appeals, totalling £19,667.

In a statement, the PIA says the business had been subject to an Intervention Notice issued in December, 1994, suspending its investment business. The authority's disciplinary committee gave notice of its intention to expel.

The firm appealed to the PIA's Membership and Disciplinary Tribunal which found that Mr Bodill had not revealed the existence of the promissory notes because of his belief that, had he done so, the firm's membership application would have been rejected.

The case went to final appeal to the PIA's appeal commissioner, Lord Ackner, who upheld the tribunal's ruling.

The firm was admitted to category three membership in August, 1994, allowing it to arrange investment transactions and give investment advice, but not to handle's client's money or assets.

Mr Bodill was not available for comment today.

A telephone answering machine at his Manchester Road offices states he is on holiday but will return on Monday.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.