Raj Thaneja and Ellena Kehoe were directors of Kingsway Lansdown Ltd which was incorporated in August 2004 and based in Wiltshire. An administrator was appointed in June 2014 by the company’s bank, with an estimated deficiency as regards creditors of £868,247.

An investigation by the Insolvency Service found Thaneja had caused Kingsway Lansdown to raise false invoices to an invoice discounting facility provider (a bank), which enabled the company to receive at least £190,630 to which it was not entitled. Kehoe failed to prevent the company from raising the false invoices.

The shortfall currently owed to the bank on the facility is £394,078. The company raised at least 26 invoices that were fictitious between 17 December 2013 and 1 May 2014, with a total value of £238,287. This caused the bank to release £190,630 to the company.

Thaneja, who was not formally appointed as a director of the company but did not dispute that he acted as the company’s director, has been given an 11 year disqualification. Kehoe has received a five year ban.

Susan MacLeod, chief investigator at the Insolvency Service, said: ‘The company obtained money to which it was not entitled by submitting details of sales invoices which did not exist, which caused the provider to incur financial losses. The directors failed to live up to the expectations of the business community.

‘Company directors should note that the Insolvency Service will take action to protect the public where directors have been found to take reckless risks with creditors’ money. They should also note the breadth of misconduct which can be considered for proceedings under The Company Directors’ Disqualification Act 1986.’

Solicitors acting for the administrators and the bank reached a settlement with Thaneja, which provided for a payment of £50,000 to be made to the bank and £45,000 to be made to the administrators.

Thaneja was made bankrupt in 1993 on his own petition, and was made bankrupt a second time on 25 November 2014 on the petition of a creditor.