Payday loan directors banned over pension liberation scheme

Philip Miller has been banned for nine years, Robert Alan Davies for six years and Daniel Jonathan Miller for five years, following an investigation by the Insolvency Service.

The investigation found that all three directors breached their duties of care, skill and diligence for allowing Speed-e-Loans.com Limited (SEL), at a time when it was not solvent and had ceased lending to new clients, to receive funds from private investors via pension liberation schemes.

These investors became liable to pay a substantial tax charge and were also exposed to the risk of penalties. SEL received over £1.2m from private investors, funds which were in jeopardy and were lost in the events that happened.

In January 2013 SEL became aware that that one of the brokers responsible for the scheme was on trial for fraud, but continued receiving investments until May 2013.

During May 2013 a BBC documentary was shown raising clear concerns over such schemes. SEL sought professional advice and entered into administration in June 2013.

At administration, SEL had assets listed at £150,269 and liabilities to creditors of £4,364,313.

Cheryl Lambert, Chief Investigator at the Insolvency Service, said: "The directors were collectively, and at the kindest interpretation, recklessly negligent in their desperation to save the company. None of them asked simple, obvious questions when it should have been clear to them the brokers were taking nearly 50% in fees, nor the type of scheme they had become involved with and the individuals who were pushing the scheme.

"Philip Miller, the proposer and principal character, stood to gain financially from individual the transactions through a commission and so his actions demand the harshest criticism.

"Taking action against the people most responsible is a warning to all directors that such behaviour will attract in a very significant sanction. You cannot hide behind a lack of technical knowledge of specialist schemes – you have to exercise independent and critical thought."