THREE directors of a number of nightclubs and pubs in Belfast have been banned from being directors for between four and 10 years after their businesses lost their fizz and crashed with debts of nearly £4.8 million.
A High Court case brought by the Department for the Economy found a litany of abuses of directorship by the trio.
This included retaining more than £1 million owed in taxes and national insurance in their three businesses.
And the court heard how, when the businesses were getting it tough before their eventual collapse, the men wrote scores of cheques worth more than £500,000 which they knew would bounce.
Undertakings were received for 10 years from Ryan Morton (29) and for nine years from Daniel Martin Morton (58), both of Ardmore Avenue in Belfast in respect of their conduct as directors of Coral Inns (NI) Ltd, Studio Inns Limited and Rymor Inns Limited.
An undertaking was received for four years from Dominic Malone (53) of Sawell Hill, Belfast in respect of his conduct as director of Rymor Inns.
Coral Inns operated a nightclub from premises at Tomb Street in Belfast, and when it entered administration in August 2012 and subsequently went into liquidation in January 2014, it owed £685,775.
Studio Inns operated popular Belfast hostelries Ronnie Drew’s on May Street and Lily’s on the Lisburn Road, and the company owed £1,397,509 when it went under in September 2012.
The debts were even bigger at Rymor Inns - some £2,710,001 at the time of administration in September 2013.
This company ran The Emerald Road House at Finaghy Road North in Belfast.
The Department accepted the disqualification undertakings from all three men based on dozens of areas of unfit conduct, which they didn't dispute.
THE CASE AGAINST RYAN MOORE:
• Failure in his statutory duty to promote the success of Coral Inns (NI) Ltd or in the alternative bringing the reputation of Coral Inns into disrepute by causing a loss to the value of Coral Inns to the detriment of the body of creditors;
• Causing and permitting Coral Inns to retain £358,298 of monies due to the Crown consisting of £64,014 in respect of PAYE for the tax years 2008/09 to 2010/11; £82,133 in respect of NIC for the tax years 2008/09 to 2010/11 and £212,151 in respect of VAT for the tax years 2009/10 and 2010/11;
• Causing and permitting Coral Inns to make loans (in respect of which £858,682 remained outstanding at the date of administration) to connected companies without any, or sufficient security which was to the detriment of Coral Inns’ creditors;
• Causing and permitting Coral Inns to fail to file annual accounts for the years ended 31 August 2007 and 31 August 2009 within the prescribed period;
• Causing and permitting Coral Inns to fail to file Annual Returns for the years ended 6 July 2007, 6 July 2008 and 6 July 2009 within the prescribed period.
• Causing and permitting Studio Inns to retain monies totalling £266,515 which were properly payable to the Crown consisting of £58,235 in respect of PAYE for the tax years 2010/11 and 2011/12; £76,937 in respect of NIC for the tax years 2010/11 and 2011/12 and £131,343 in respect of VAT for the tax year 2011/12 at a time when other trade creditors were being paid and/or using the retained Crown monies to finance the continued trading of Studio Inns Limited to the detriment of the Crown;
• Causing and permitting Studio Inns to fail to file Annual Returns for the periods ended 23 June 2007 & 23 June 2008 within the prescribed periods;
• Causing and permitting Studio Inns to fail to file annual accounts for the years ended 31 August 2007 & 31 August 2009 within the prescribed periods and for the year ended 31 August 2010 failure to file Annual Accounts.
• Causing and permitting Rymor Inns to retain monies totalling £228,607 which was properly payable to the Crown consisting of £134,983 in respect of PAYE for the tax years 2009/10 to 2013/14; £39,343 in respect of NIC for the tax years 2009/10 to 2013/14 and £54,281 in respect of VAT for the tax years 2010/11 to 2013/14 at a time when other creditors were being paid and/or causing and permitting the retained Crown monies to finance the continued trading of Rymor Inns;
• Causing and permitting Rymor Inns to misuse its bank account by tendering 66 cheques with a total value of £280,754 without due regard for them being honoured on presentation and failure to provide sufficient funds to honour 32 direct debits and standing orders;
• Causing and permitting Rymor Inns to fail to file Annual Returns for the periods ended 30 October 2011 and 30 October 2012 within the prescribed periods;
• Causing and permitting Rymor Inns to fail to file annual accounts for the periods 31 October 2010, 31 August 2011 and 31 August 2012.
THE CASE AGAINST DANIEL MORTON:
• Failure in his statutory duty to promote the success of Coral Inns (NI) Ltd or in the alternative bringing the reputation of Coral Inns into disrepute by causing a loss to the value of Coral Inns to the detriment of the body of creditors;
• Causing and permitting Coral Inns to fail to pay £386,358 due to the Crown consisting of £33,570 in respect of PAYE for the tax years 2010/11 to 2012/13; £45,028 in respect of NIC for the tax years 2010/11 to 2012/13 and £307,760 in respect of VAT for the tax years 2011/12 and 2012/13.
• Causing and permitting Studio Inns to retain monies totalling £326,421 which was properly payable to the Crown consisting of £125,210 in respect of PAYE for the tax years 2011/12 to 2013/14; £93,186 in respect of NIC for the tax years 2011/12 and 2012/13 and £108,025 in respect of VAT for the tax years 2011/12 to 2013/14 at a time when other trade creditors were being paid and/or causing and permitting the retained Crown monies to finance the continued trading of Studio Inns to the detriment of the Crown;
• Causing and permitting Studio Inns to fail to file Annual Returns for the periods ended 23 June 2012 and 23 June 2013 within the prescribed periods and to fail to file at all the Annual Return for the period ended 23 July 2013;
• Causing and permitting Studio Inns to fail to file annual accounts for the years ended 31 August 2011 and 31 August 2012.
• Causing and permitting Rymor Inns to retain monies totalling £86,433 which was properly payable to the Crown consisting of £33,770 in respect of PAYE for the tax years 2009/10 to 2011/12; £29,616 in respect of NIC for the tax years 2009/10 and 2011/12 and £23,047 in respect of VAT for the tax years 2010/11 and 2011/12 at a time when other creditors were being paid and/or causing and permitting the retained Crown monies to finance the continued trading of Rymor Inns;
• Causing and permitting Rymor Inns to misuse its bank account by tendering 37 cheques with a total value of £212,157 without due regard for them being honoured on presentation and failure to provide sufficient funds to honour 7 direct debits and standing orders;
• Causing and permitting Rymor Inns to fail to file annual accounts for the period ended 31 October 2010.
THE CASE AGAINST DOMINIC MALONE:
• Causing and permitting Rymor Inns Limited to retain monies totalling £142,619 which were properly payable to the Crown being £101,384 due in respect of PAYE for the tax years 2011/12 to 2013/14; £9,918 due in respect of NIC for 2011/12 and £31,317 due in respect of VAT for the tax years 2011/12 to 2013/14 at a time when other creditors were being paid and/or causing and permitting the retained Crown monies to be used to finance the continued trading of Rymor Inns;
• Causing and permitting Rymor Inns to misuse its bank account by tendering 29 cheques with a total value of £68,597.47 without due regard for them being honoured on presentation and failure to provide sufficient funds to honour 25 direct debits and standing orders;
• Causing and permitting Rymor Inns to fail to file an Annual Return for the period ended 30 October 2012 within the prescribed period;
• Causing and permitting Rymor Inns to fail to file annual accounts for the periods ended 31 August 2011 and 31 August 2012.
