Press release: No escape from illegal worker fine for Coventry clothing company director

Mr Dewitt gave a disqualification undertaking to the Secretary of State for Business, Energy & Industrial Strategy for six years which is effective from 27 November 2017.

Mr Dewitt was the director of Mystique Coventry Ltd, a company trading as a clothing wholesaler, and on 15 November 2016 Home Office Immigration Enforcement Officers discovered that they were employing seven workers who were not eligible to work in the UK.

The company went into liquidation on 16 March 2017 owing £74,394 to creditors, including the £70,000 penalty imposed by the Home Office Immigration and Enforcement for employing illegal workers.

Martin Gitner, Deputy Head of Investigations with the Insolvency Service said:

Illegal workers are not protected under employment law, and as well as cheating legitimate job seekers out of employment opportunities these employers defraud the tax payer and undercut honest competitors.

The Immigration, Asylum and Nationality Act 2006, makes employers responsible for preventing illegal workers in the UK. To comply with the law, a company must check and be able to prove documents have been checked prior to recruitment that show a person is entitled to work.

The public has a right to expect that those who break the law will face the consequences and this should serve as a warning to other directors tempted to take on illegal staff.

Mr Ajay Dewitt, date of birth June 1988 and he resides in Bedworth, Coventry.

Mystique Coventry Limited, company number 10000072 was incorporated on 11 February 2016.

Mr Dewitt was a director from 11 February 2016 to liquidation. The Company went into Creditors Voluntary Liquidation on 16 March 2017 with an estimated deficiency of £68,125.

On 06 November 2017, the Secretary of State accepted a Disqualification Undertaking from Mr Dewitt, effective from 27 November, for a period of 6 years.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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