Director disqualified over European bank transfer

A director of a payroll company who moved millions to a Montenegrin bank while his company was insolvent has been disqualified for seven years.

The Insolvency Service said Paul Bresnihan, from Leicester-based CJS Engagement 2 Ltd, transferred €4.8m (£4.17m) to an account in Europe at a time when the company owed HMRC more than £32m.

It said the 49-year-old, of Castledine Avenue in Quorn, "did not provide an explanation for the money transfers", and "has not co-operated" with attempts to recover the money.

He has now signed an undertaking confirming his disqualification, which began on Tuesday.

The service said the company was told in March 2023 it had not paid sufficient VAT to HMRC, with a demand for full payment made.

No payments were made, and in June that year HMRC presented a winding-up petition, claiming an outstanding debt of £32,427,882.

The company was subsequently wound up in August 2023, and an investigation found Bresnihan had transferred funds from CJS Engagement 2 Ltd to a company bank account in Montenegro.

Kevin Read, chief investigator for the Insolvency Service, said Bresnihan "has admitted his errors and now every effort will be made to recover the funds".

"[He] seemingly ignored the debts his company owed while continuing to transfer money abroad," he said.

"This seven-year disqualification will ensure he is unable to be a director or be involved in the running of a company for a significant time."

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