{"id":69819,"date":"2016-04-21T11:18:09","date_gmt":"2016-04-21T11:18:09","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=2f4dd7d9902a57286a244ff43db2116e"},"modified":"2016-04-21T11:18:09","modified_gmt":"2016-04-21T11:18:09","slug":"press-release-12-year-disqualification-for-director-whose-company-sold-rare-earth-elements-as-an-investment","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=69819","title":{"rendered":"Press release: 12 year disqualification for director whose company sold Rare Earth Elements as an investment"},"content":{"rendered":"
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Samuel Peter Hawkins, a director of Global Metal Exchange Ltd (GME<\/abbr>), has given an undertaking to the Secretary of State for Business, Innovation & Skills to be disqualified as a director for 12 years. The disqualification regime exists to protect the public. Mr Hawkins\u2019s disqualification from 22 March 2016 means that he cannot promote, manage, or be a director of a limited company until 2028. <\/p>\n

This disqualification follows investigation by the Official Receiver at Public Interest Unit, a specialist team of the Insolvency Service. The Official Receiver\u2019s involvement commenced with the winding up of the company in the public interest, after the affairs of the company were investigated by Company Investigations. <\/p>\n

The investigation found the price of the REEs<\/abbr> had been inflated by several hundred percent so that the only entities to make money from the venture was GME<\/abbr> and its supplier of REEs<\/abbr>. It was uncovered that GME<\/abbr> telephoned individuals and sold them REEs<\/abbr> on the basis that they were suitable as an investment. There was no viable exit strategy for GME<\/abbr>\u2019s customers at the time and, even if there was, the price GME<\/abbr> charged for the REEs<\/abbr> meant that the REEs<\/abbr> could not be sold without financial loss. As a result customers are owed at least \u00a333,414.61.<\/p>\n

Commenting on this case Paul Titherington, Official Receiver in the Public Interest Unit, said:<\/p>\n

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The Insolvency Service will not hesitate to use its enforcement powers to investigate and disqualify directors whose companies defraud the public.<\/p>\n

The amount owed to customers may in fact be higher than that revealed by our investigations as the company failed to keep adequate records and there may therefore be additional customers I am presently unaware of.<\/p>\n<\/blockquote>\n

Notes to Editors<\/h3>\n

Global Metal Exchange Ltd (Company Registration Number 08162310) was incorporated on 31 July 2012.
\nThe petition to wind up the company was presented by the Secretary of State for Business, Innovations and Skills in the public interest following an investigation conducted by Company Investigations (Live), another specialist unit within the Insolvency Service which uses powers under the Companies Act 1985 (as amended) to conduct confidential enquiries into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovations & Skills (BIS). The winding up order against Global Metal Exchange Ltd was made on 12 March 2014.<\/p>\n

On 22 February 2016, Mr Hawkins signed a disqualification undertaking for a period of 12 years. The period of disqualification will commence on 22 March 2016.<\/p>\n

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:<\/p>\n