Daniel Eric Carter was the sole director of DC Building & Extensions Ltd, previously known as Carters Building Ltd. Incorporated in August 2017, the company provided building services for residential properties.

DC Building & Extensions Ltd, however, experienced trading difficulties throughout the life of the company and by May 2019, the building firm had entered into compulsory liquidation following a petition by one of its creditors.

The Official Receiver was appointed as liquidator and the building firm’s insolvency triggered an investigation by the Insolvency Service before investigators uncovered that DC Building & Extensions Ltd substantially abused its position.

Carter caused the building firm to take deposits and advance payments totalling close to £182,000 from five new customers. However, these customers were put at unreasonable risk as the building firm accepted their cash despite knowing it was insolvent.

Further enquiries found that Carter caused the building firm to continue trading despite it being placed into liquidation by the court, he failed to disclose £35,000 of assets to the Official Receiver, and withdrew more than £25,000 from DC Building & Extensions Ltd’s account for personal use and to pay other third parties.

On 28 June 2022, a 10-year disqualification order was made against Carter in the High Court by Deputy Judge Greenwood, after he failed to file an acknowledgement of service or any evidence in response to the claim.

Carter was also ordered to pay costs of £6,649.

Mike Smith, chief investigator for the Insolvency Service, said: “When people paid deposits for building works they were doing so in good faith that their jobs would get completed.

“Daniel Carter, however, completely abused this trust when he caused the company to take clients’ money knowing there was substantial risk his firm couldn’t carry out the works he had promised.

“Daniel Carter’s 10-year ban issued by the court is a substantial disqualification and should serve as a clear warning to other service providers that there are serious consequences if you take money from clients while insolvent with no likelihood of being able to complete projects.”