A fraudulent construction company that purchased goods and equipment for construction sites but failed to pay its bills, has been shut down by the High Court.
It has wound up Nobleread Ltd and appointed the Official Receiver as liquidator of the company.
The company operated two businesses, NB Construction and NB Wholesale. Between February and April 2021, it ordered various construction goods on credit under each name, following approaches to suppliers.
Materials sold for cash
Representatives for NB Construction approached building sites or tradespeople in builders’ merchants in person and offer materials and supplies at a reduced price, for cash.
They made arrangements with customers via WhatsApp and over the phone, and in most cases goods were shipped directly to site by the trade supplier. The NB Construction representative would then collect cash payments in person.
Suppliers contacted by NB Wholesale would alternatively ship goods to a Nobleread warehouse in Essex. The owner of the warehouse told investigators that six suppliers in total had delivered to them for Nobleread. From there, a removal company collected the goods in return for a cash payment.
Unpaid debts
But the suppliers, who agreed to a credit facility with NB Wholesale, were then left unpaid, with debts totalling more than £60,000.
Nobleread ordered goods from suppliers, including building materials such as paving, insulation, rooflights and decking to decorating supplies, commercial microwaves, vacuums, combi boilers, reed diffusers and room sprays.
Both Nobleread entities appear to have ceased trading later in 2021, and their websites were taken down.
The company used identity theft to create a fake director and also when making applications for credit.
The High Court agreed that closing down the company was in the public interest, given the lack of cooperation, failure to deliver up adequate accounting records, and objectionable trading practices.
Mark George, chief investigator at the Insolvency Service, said: “Nobleread has gone about its business in a reprehensible manner and those behind it have gone to great lengths to hide their identities. Suppliers should always do due diligence on companies before agreeing any credit facilities, and check the integrity of any trade references in particular.
“We will always seek to have companies wound-up in such cases, in the public interest.”
