The Insolvency Service’s Annual Report and Accounts for 2023-24 have now been published.
Commenting on the report, Mark Goodwin, Founder and Managing Director at Optimise said: “During 2023-24 Official Receivers handled nearly 11,000 new insolvency cases, a significant increase from just over 9,000 in 2022-23.
"Within this large number of insolvencies, there are numerous legitimate legal claims against fraudulent directors that might not be pursued due to lack of funds. Optimise is here to bridge this gap, ensuring that insolvency practitioners and creditor estates receive maximum returns. By providing the necessary funding, we help ensure that justice is served and creditors are fairly compensated."
The report shows that over the year, the Insolvency Service took action resulting in 831 directors being disqualified due to Covid loan abuse, carried out 22 criminal prosecutions and took steps towards the recovery of nearly £3m.
Covid-19 Support Scheme misconduct and fraud related outcomes represented 62% of all disqualification and criminal outcomes - up from 48% in 2022/23 and 16% in 2021/22.
Added Mark: “The Insolvency Service is rightly cracking down on directors who have abused Covid support schemes - the numbers to date are likely to be the tip of the iceberg.”
During the year, the Insolvency Service also secured the disqualification of a total of 1,222 directors for misconduct, carried out 139 live company investigations and obtained winding up orders for 45 companies which were acting contrary to the public interest.