The former director of the fundraising firm CS Fundraising, which went into liquidation in January 2015, is being pursued for outstanding debts worth thousands of pounds and the alleged "misallocation of customer monies", according to the latest liquidator’s report.
Chris Stoddard has been contacted by the liquidator, the insolvency firm Wilson Field, about sums of £26,475 for the sale of moveable assets and business intellectual property rights, and a minimum of £24,828 outstanding from the director’s loan account, the liquidator’s report says.
Stoddard was the director of two previous versions of CSF: CSDM, which went into administration in June 2010, and CSDM Fundraising, which went into administration in June 2013.
Both CSDM and CSDM Fundraising owed large amounts of money on entering administration and were bought by so-called phoenix operations.
The report, filed with Companies House this month, says a firm of solicitors contacted the liquidator to advise that the director’s loan account was overdrawn by £57,118, rather than the £24,828 previously believed.
It says other "questionable transactions" have been identified on the loan account, and this could increase further the debt owed to the company by the director.
The liquidator says this will be referred to solicitors if Stoddard fails to respond to requests for repayment of the £24,828.
The liquidator’s report says it has written to Cleardata Direct Media Ltd, of which Stoddard is also a director, requesting payment for the sale of the assets and property rights. It says CSF’s bank accounts do not show "any payment towards the total sale consideration of £26,475 was made prior to the date of the liquidation".
The report says it is yet to receive a "substantive response" from Stoddard about this claim.
Under a section entitled "potential misallocation of customer monies", the report says Stoddard "advised that he had been in the process of obtaining instructions from each of the charities for any funds held to be transferred to a new account on their behalf prior to the liquidation, and that he had received instruction from two of the charities confirming the same".
The report says that the liquidator requested letters of authority signed by each charity to provide their consent to such a transfer, but "the director has failed to provide a substantive response in this respect" and "the director completed the transfer of the funds prior to the liquidation".
It says solicitors contacted the liquidator about the contracts held between the company and various charities, after which the liquidator requested the trust accounts for each charity from Stoddard.
Stoddard said the company’s books and records had been stolen and this had been reported to the police, the report says.
The report says Stoddard believes the respective client accounts held an aggregate credit balance of about £48,000 but was unaware whether any proportion of this sum was due to the company.
A spokesman for Stoddard said: "In any liquidation, the liquidator has a responsibility to investigate events leading up to the liquidation, and Mr Stoddard has cooperated fully as part of that process – and continues to do so."
He added that Stoddard had not had any query about the incorrect allocation of funds and "confirms that all monies due to charities served by the company have been paid. The claims by creditors are just that – claims that have yet to be verified – and he anticipates that the outstanding amounts confirmed as due to creditors will be nowhere near as high as that reported elsewhere."