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Financial services directors banned for trading while insolvent

financial services, trading, self-serving payments, creditors, Independent Derivative Traders, Futex, Secretary of State
Four financial services directors have been banned for 19 years after causing the company to take money from clients and make self-serving payments while being insolvent

Paul Rossi (53), also known as Paolo Rossi, and his wife, Claire Michelle Rossi (49), were directors of Independent Derivative Traders Ltd. The company traded as ‘Futex’ and provided access to a financial markets trading platform for sub-contracted independent traders.

The married couple were joined in the management of the company by Paul’s brother Mark Rossi (51), also known as Marco Rossi, and Daniel Michael Goldberg (42).

Independent Derivative Traders was incorporated in March 1995 but 11 years later in February 2016, the company was insolvent due to difficult trading conditions and increased running costs, which meant it could not meet all of its liabilities.

The four directors received professional advice that all of Independent Derivative Traders’ creditors should be treated equally and the directors had an obligation to look after its creditors’ interests and not to worsen their position.

However, despite Independent Derivative Traders being insolvent, the company obtained deposits from two new traders totalling £75,000, which were then used in general tradingwhile also paying-out over £79,000 to Paul and Claire Rossi and an associated company. This was contrary to the advice given and detrimental to their creditors.

The company went into liquidation in November 2016 and the Secretary of State has since accepted disqualifications undertakings from Mark Rossi (eight years), Paul Rossi (six years), Daniel Goldberg (three and a half years) and Claire Rossi (two years) for their various roles in causing or allowing the company to take money from clients and make self-serving payments while being insolvent.

Daniel Goldberg’s ban started on 11 September 2018, while Mark, Paul and Claire’s disqualifications are effective in February 2019 and their disqualifications mean the four directors are banned from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

David Brooks, Chief Investigator of at the Insolvency Service, said: “When the company became insolvent, the directors were specifically instructed not to do anything that was detrimental to creditors. However, they decided to completely disregard that advice, putting their creditors at risk.

“These disqualifications should serve to further underline that such behaviour is unacceptable and we will seek disqualifications against those directors that do not uphold their duties.”

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