TWO men have been banned from acting as company directors for a total of 23 years after they transferred more than half a million pounds out of their Bolton-based debt management companies.

Gary Gregson and Andrew Brooke ran Gregson and Brooke Financial Services Ltd and One Tick Ltd, which traded from offices in Bradshawgate, Bolton, and provided debt management services, helping people to come to agreements with their creditors and pay down their debts.

The companies, which operated through various trading names, such as Expert Money Solutions, would receive payments from customers to put into debt repayment plans and, in addition, offered to challenge the enforceability of credit agreements signed by their clients, as well as reclaiming PPI payments.

Although this was a legitimate service, the companies only paid minimal contributions to the credit providers from their clients’ debt payment plans, keeping a significant portion of their clients’ money to go towards ‘service fees’.

Some customers complained to the Financial Ombudsman after finding their debts had increased despite having paid money into their debt payment plans.

In July 2014 the Financial Conduct Authority (FCA) visited the companies' offices and, as a result, the firms agreed to stop accepting new customers.

Gary Gregson, aged 38, was told they could be closed down if they were unable to provide adequate records of how much money was being held on behalf of their clients.

Gregson agreed not to withdraw fees, other than to pay staff, but then proceeded to transfer £210,006 from the two firms to himself and third parties he was connected to, before resigning his directorships.

The firms then came under the stewardship of 45-year-old Andrew Brooke, who was reappointed as a director of the companies on August 20, 2014.

But FCA continued to have concerns and issued supervisory notices to the two firms nine days later.

However, Brooke then proceeded to transfer a total of £442,000 to another company he was a director of before both Gregson and Brooke Financial Services and One Tick went into administration in the October.

The Insolvency Service then investigated and last month Gregson, who now lives in Manchester, was disqualified from being a company director for 10 years for a lack of commercial probity and failure to ensure the debt management companies, including another failed company, Gregson and Brooke Ltd, adhered to guidance issued by the regulator.

Previously Andrew Brooke, who now lives in the Philippines, was disqualified for 13 years having also acted with a lack of commercial probity and failure to ensure GAB adhered to the regulator’s guidance.

At the same time as Andrew Brooke was disqualified, his wife Shalles Fee Onido, aged 43, also known as Shalles Brooke, and Nova Espoltero, aged 33, were disqualified for four years each having allowed him to authorise the £442,000 worth of transfers.

Robert Clarke, head of insolvent investigations North for the Insolvency Service, said: “The real victims here are Brooke and Gregson’s clients who sought genuine assistance to help manage their debts but many received little or no benefit at all from instructing the companies to act on their behalf.

“Brooke and Gregson clearly put their own interests ahead of their clients. The vast amount of money they transferred out of their companies and their timing as the net was closing in from the FCA showed a cynical disregard for the needs of their customers.

“I would also like to thank the FCA, whose cooperation was crucial in securing these disqualifications.”

Jonathan Davidson, director of supervision — retail and authorisations at the FCA, said: “These individuals were more interested in lining their own pockets than helping potentially vulnerable people get out of debt.

"This case shows what can be achieved when we work with partners, like the Insolvency Service, to ensure people face the consequences of their actions.

“We are pleased that, as result of our partnership, it will be years before they have any involvement in the business community again as directors.”