David Andrew Marsden was the director of finance company, First Capital Factors Limited (FCF), offering recourse factoring facilities, where it would buy a company’s invoices to provide them with advanced finance.
To purchase these invoices, FCF secured funding. However, one of its funders spotted irregularities within FCF’s portfolio, and appointed an administrator. It was discovered that David Marsden instructed a number of clients to produce false invoices, before he submitted them to FCF’s funders to secure illegitimate funds close to £4.3m: transferred to companies he was connected with.
David Marsden admitted acting in collusion with certain clients to defraud the finance provider. The Secretary of State accepted a disqualification undertaking for 10 years.
Martin Gitner, Deputy Head of Insolvent Investigations for the Insolvency Service, said:
“His substantial ban will protect other creditors from suffering losses and improve standards in the marketplace. It should also act as a deterrent to others who may be tempted to misuse invoice finance facilities in order to secure illegitimate funds.”
