Chris Stoddard, a businessman who runs several direct mail companies, has decided not to comply with a request by a firm of administrators to stop using donor lists to send out charity mailings while it resolves the affairs of one of his companies.
In September of this year, the insolvency firm Rimes & Co asked Stoddard not to let any of his fundraising agencies use a donor database that was once owned by his firm, CSDM, which was put into administration in June.
The administrators wanted to investigate whether the lists of donors' details, which were sold by CSDM in January last year to another company owned by Stoddard, CS Incentive, had been sold at their true value.
But Stoddard has confirmed that some of his companies are still using the lists to send out direct mail. "Our financial adviser has spoken to the administrators and told us that we can do this," he said.
"Quite early on, we made the case about why we should be allowed to use the lists, and the administrators have changed their minds."
Adam Jordan, an insolvency practitioner at Rimes & Co, said: "There is no agreement between ourselves and any of Stoddard's companies that they can use the lists. We asked him not to use them and our request has not been heeded." The request is no longer being pursued.
Stoddard said there was a legal agreement between CSDM and CS Incentive that allowed the latter company to use the lists. Jordan said he was assessing the nature of this agreement to determine if it was valid.
Stoddard has said he intends that creditors of CDSM will be paid in full.