London, Apr 5 (PTI) An Indian-origin couple has been sentenced for breaching a disqualification order to operate companies in the UK for over five years despite a ban following tax fraud claims.

Bharat Jogia, 71, from Englad's West Midlands region was disqualified as a company director for 13 years in 2014 after not disputing that he caused Jogia Jewellers (UK) Limited to wrongfully claim more than 2 million pounds from HM Revenue and Customs (HMRC).

The UK's Insolvency Service discovered that he ignored that ban to continue to control pharmaceutical companies Diamond Pharma Limited and BHJ Consulting Ltd.

His wife, 57-year-old Louise Jogia, was found to have "aided and abetted" him in breaching the disqualification and acted as the official director of BHJ Consulting.

“Bharat Jogia showed complete contempt for the law by breaching his director disqualification ban for more than five years," said Mark Stephens, Chief Investigator at the Insolvency Service.

“Louise Jogia acted as a front to shield her husband, providing signed documentation and support where needed.

“Ignoring a disqualification is a serious criminal offence that undermines the entire system designed to keep rogue directors out of positions where they can cause further harm to creditors, employees and the wider economy," he said.

Stephens explained that director disqualifications exist to protect the public and maintain confidence in UK businesses.

“When someone is banned from running companies, it is because they have proven themselves unfit to do so," he added.

Jogia's disqualification order ought to have prevented him from running, managing or promoting any company until 2027. His breach of the ban resulted in a sentence of nine months in prison, suspended for 18 months, when he appeared at Birmingham Crown Court last week.

He was also ordered to complete 100 hours of unpaid community work and disqualified as a company director for another 10 years.

His wife was sentenced to seven months in prison, also suspended for 18 months, at the same hearing and disqualified as a company director for 10 years.

The suspended sentence means the couple has avoided immediate custodial terms, provided they commit no further offences and comply with court-imposed community requirements.

Jogia, based in Streetly near Birmingham, signed a disqualification undertaking – or an agreement where company directors suspected of misconduct voluntarily disqualify themselves instead of taking the case to court – in June 2014.

In the signed document, Jogia did not dispute that he caused Jogia Jewellers (UK) Limited to participate in transactions which formed part of a scheme to defraud HMRC.

The undertaking meant that Jogia could not be a director of any UK-registered company or be involved in forming, marketing or running a company.

However, he continued to run Diamond Pharma Limited and BHJ Consulting Ltd in all but name from the day of his disqualification up until August and July 2019 respectively, just before liquidators were appointed to both companies.

Investigations by the Insolvency Service revealed that Jogia instructed lawyers on conveyancing matters, approved company accounts, authorised agreements with customers and suppliers, managed staff and received more than 80,000 pounds in consultancy services – all for Diamond Pharma Limited.

“Under Jogia’s management, Diamond Pharma Limited also racked up more than 445,000 pounds in tax debts, leading to HMRC applying to have the company wound-up," stated the Insolvency Service.

“For BHJ Consulting Ltd, Louise Jogia provided the trading history to the liquidator by email, noting that she and her husband set up the company 'as a consultation service to the pharmaceutical industry'. However, matters which as a director Louise Jogia would be expected to deal with such as instructions to lawyers on conveyancing matters, the company’s IT decisions and payment to creditors, were all dealt with by her husband," it noted.

Their analysis of BHJ Consulting Ltd’s bank account showed it was used to pay personal bills for Bharat and Louise Jogia. The Insolvency Service said it is now seeking confiscation of funds against the Jogias under the UK’s Proceeds of Crime Act 2002. PTI AK GSP GSP

Director disqualification breach and company control led to suspended prison sentences, fresh bans and confiscation proceedings. Director disqualification was imposed after unchallenged findings that a company had wrongfully claimed funds from HM Revenue and Customs in connection with a tax fraud scheme. Despite the ban on running, managing, promoting or otherwise being involved in UK-registered companies, the director continued to control two pharmaceutical-related companies, and a spouse was found to have aided and abetted the breach while acting as the formal director of one company. The article also notes suspended prison sentences, fresh disqualifications and confiscation proceedings under the Proceeds of Crime Act 2002.