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The claimant was the liquidator of the company, which traded in mobile telephones. The defendants were anther company, R, and its director. They were involved in a pattern of trading suggesting VAT fraud, whereby payments that should have been made to the claimant company were diverted by R to third parties.
HMRC carried out an investigation into the relevant parties and found discrepancies in R’s accounts.
Following the insolvency of the claimant company, a liquidator issued proceedings against the defendants for breach of constructive trust against R and its director, claiming the value of payments (£93,699 million) that should have been made to it.
The defendants did not resist the claim.
The court ruled that the defendants had been involved in fraud and were liable for breach of constructive trust by diverting money due to the claimant to other parties.
Judgment was entered for the claimant.
