Streetly Businessman Defies 13-Year Director Ban, Continues Running Companies
A disqualified director from Streetly has been found to have blatantly ignored a 13-year ban, continuing to operate two companies for more than five years after being prohibited for defrauding HM Revenue and Customs of over £2 million. Bharat Jogia, 71, of Aldridge Road, Streetly, was originally banned in 2014 after causing Jogia Jewellers (UK) Limited to wrongfully claim more than £2.3 million from HMRC, an action the Government described as fraudulent.
Court Sentences and Legal Consequences
At Birmingham Crown Court on Friday, March 27, Bharat Jogia was sentenced to nine months in prison, suspended for 18 months, and ordered to complete 100 hours of unpaid work. Additionally, he was disqualified as a company director for ten years. His wife, Louise Jogia, 57, of the same address, received a seven-month suspended prison sentence, also suspended for 18 months, and was similarly disqualified for ten years. The court heard that Louise Jogia acted as a front to shield her husband, providing signed documentation and support to facilitate the breach of his disqualification.
Details of the Fraudulent Activities
Despite his disqualification, which should have prevented him from running, managing, or promoting any company until 2027, Jogia controlled pharmaceutical companies Diamond Pharma Limited and BHJ Consulting Ltd. Investigations by the Insolvency Service revealed that Jogia was actively involved in both companies from the day of his disqualification until mid-2019. For Diamond Pharma Limited, he instructed lawyers on conveyancing matters, approved company accounts, authorised agreements with customers and suppliers, managed staff, and received over £80,000 in consultancy services.
Under his management, Diamond Pharma Limited accumulated more than £445,000 in tax debts, prompting HMRC to apply for the company to be wound up. For BHJ Consulting Ltd, Louise Jogia claimed it was set up as a consultation service to the pharmaceutical industry, but her husband handled key director duties, including legal instructions, IT decisions, and creditor payments. Analysis of the company's bank account showed it was used to pay personal bills for the couple.
Insolvency Service Response and Warnings
Mark Stephens, Chief Investigator at the Insolvency Service, condemned Jogia's actions, stating, "Bharat Jogia showed complete contempt for the law by breaching his director disqualification ban for more than five years. Director disqualifications exist to protect the public and maintain confidence in UK businesses. When someone is banned from running companies, it is because they have proven themselves unfit to do so." He emphasized that ignoring a disqualification is a serious criminal offence that undermines the system designed to prevent rogue directors from causing harm to creditors, employees, and the economy.
The Insolvency Service is now seeking confiscation of funds against the Jogias under the Proceeds of Crime Act 2002, highlighting the ongoing efforts to prosecute those who flout such bans. This case serves as a stark reminder of the legal consequences for individuals who attempt to circumvent director disqualifications and engage in fraudulent business practices.
