A former Kent Entrepreneur of the Year has received a 12 year Director ban for defrauding his construction company’s creditors.

An investigation by the Insolvency Service found that Alan James Proto, 48, of Chester and previous Accountant and Director of GML Construction Limited, tried to legitimise asset transfers totalling over £1 million through back even when he knew his company was entering an insolvency process.

He created false documentation and constructed a scheme intending to put him in a better position and assets beyond the reach of creditors.  

Head of Outsourced Investigations at the Insolvency Service, Cheryl Lambert, said: “Directors of companies experiencing financial difficulties have a duty to act in the best interests of its creditors,”

“This must include ensuring the transparency of the company’s trading activities.”

At the end of 2012, GML was owed approximately £898,000, which involved the sale of a property development, where it was expected that they would receive repayment following the sale.

However, Mr Proto created entries on his computer which claimed to write off the outstanding debt and transferred the interest to the subsidiary for his gain. He also created documents which purported to show other people agreeing to this, even though he had never met them or didn’t exist.

He then backdated the correspondence he had in order to try and validate the scheme. Then Mr Proto involved himself in transactions where his £150,000 loan to GML was repaid ahead of other creditors.

The scheme was exposed due his notes on the plot on a computer which were restored after they were deleted.

“Mr. Proto’s conduct of GML’s affairs fell short of the judgment expected and to protect the integrity of the Market, the Insolvency Service will use its powers to protect the business world when Director’s act in this way,” added Cheryl.

GML has traded in the construction industry since 1991 and went into administration on 16th November 2013 and was liquidated at the start of 2014 with assets of £1,893,379 and liabilities of £4,463,599.