Craig O’Driscoll was the director of failed investment company Ethical Elegance Ltd which operated out of rented addresses in Bromley and Dartford in Kent. The company traded by offering diamonds to customers in exchange for fine wine assets and by promising to then sell the diamonds on the customers’ behalf.

The Insolvency Service’s investigations found that between May 2013 and August 2013 at least seven customers were persuaded to transfer wines to the company after being offered diamonds stated to be worth £243,284.

However, after transferring their wines none of the customers received any proceeds from the sale of diamonds. Instead customers were sent diamonds in the post, but the values of these were a fraction of the amounts promised.

The company failed to acquire diamonds to the values offered to the customers and it failed to sell any diamonds on behalf of customers. The total cost of diamonds purchased by Ethical Elegance Ltd amounted to £44,458.

Ethical Elegance Ltd went into liquidation on 29 October 2013 owing debts of over £215,000 to customers. At the time, its assets totalled £3,527 and its liabilities totalled £239,600, giving a deficiency of £236,073.

No accounting records for Ethical Elegance Ltd were provided to the liquidators. The Insolvency Service said without the records it has not been possible to explain expenditure of over £177,000 made from the company’s bank account or to trace diamonds costing £16,411.

Martin Gitner, deputy head investigator at the Insolvency Service, said: ‘Mr O’Driscoll was responsible for the company making false promises to people to persuade them to enter into agreements. He was also responsible for the company failing to keep or produce proper accounting records, the absence of which means that not all the company’s funds and assets can be traced.

‘This disqualification should serve as a warning that if directors behave in this way their conduct will be investigated and they will be removed from the business environment.’