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Recycling group shut down by High Court

Published on 30 Jul 2009 under category: legal

Four recycling firms which allegedly misled investors have been wound up by a judge.

Magna Group, which oversaw Magna Recyling, Magna Engineering and Magna Toughened Glass, was shut down by a High Court ruling, it may interest insolvency solicitors to learn.

The decision comes after an investigation by the Department for Business, Innovation and Skills’ Insolvency Service.

This alleged that prospective investors were told that the firm which headed up the companies would generate millions of pounds in turnover.

However, the enquiry found that less than £40,000 had been made in sales over the last three years, with this alleged misleading of potential shareholders given as the reason why the group was wound up.

In other business news, recently three former senior members of staff at Derby County Football Club were jailed in relation to fraud crimes and false accounting.

Northampton Crown Court heard that the men received a "secret commission" when taking over the club in 2003.