John Stuart Davies, a former director of SAS Fire & Security Systems Limited (‘SAS Fire’) in Stockport – the fire alarm sales company wound up in the public interest in March after an investigation by Company Investigations of The Insolvency Service – has been fined £10,000 for contempt of court for making a false witness statement.
During court proceedings to wind up ‘SAS Fire’, Mr Davies gave undertakings and made assurances to the court that the sales activities of the company would continue in a manner acceptable to the court.
In his witness statements, Mr Davies claimed that ‘SAS Fire’ was continuing to trade and make sales subject to those undertakings. A subsequent investigation into Homeguard Fire & Security Ltd ("Homeguard"), Central Intelligence Security Solutions Ltd ("CIS Solutions") and Skynet Security Systems Ltd ("Skynet") found that, during the period in which Mr Davies made his witness statements, ‘SAS Fire’ had ceased making new sales and had sold most of its assets to ‘Homeguard’ ‘CIS Solutions’ and ‘Skynet’. ‘SAS Fire’ had enabled those companies to continue the sales operations of ‘SAS Fire’ using the same objectionable sales tactics that the Secretary of State had complained about in respect of ‘SAS Fire’. In doing so, these companies evaded the undertakings provided to the court by ‘SAS Fire’ and its officers.
‘Homeguard’, ‘CIS Solutions’ and ‘Skynet’ were all wound up in May/June 2011 on the grounds that they had acted against the public interest.
The matter was heard by HH Judge Pelling QC on 11 July 2011. The judge found that Mr Davies had made a false witness statement; that the statement had materially interfered with the course of justice; and that Mr Davies did not have an ‘honest belief in the truth of his statement’ and knew that it was likely to interfere with the course of justice.
Robert Burns, Head of Investigation and Enforcement at The Insolvency Service, said afterwards: "The Insolvency Service will take firm action in circumstances where false statements have been made to the court during proceedings we have brought in order to protect the public or the business community."
Note
SAS Fire & Security Systems Ltd was incorporated in August 2007. Its registered office and principal trading address was at Windsor House, Battersea Road, Heaton Mersey Industrial Estate, Stockport, Cheshire SK4 3EA. It was wound up on 25 March 2011.
