Administrators Charged With Fraud

Administrators Charged With Fraud

When it comes to a company going into administration, there is a lot of pressure for the administrator. Quite often there will be jobs at stake, which means that livelihoods will be at risked. This can mean that there is a hugely emotional aspect involved with the role that an administrator undertakes but of course, the administrator cannot let the emotional aspect drive them or lead them to make decisions. This can be tough but the focus has to be on getting the best deal, primarily for the creditors. If the administrator can bring in money and save jobs, it is brilliant news but this isn’t always the case.

It is important to note that directors that fail to support and assist administrators can face some serious consequences. It is possible that directors acting in this manner can have their right to act as a director be taken away from them. It is even possible that directors could be sent to jail if they work against the administrator or take action that sees creditors lose out. This is why it is important to welcome the administrators and do as much as possible to allow them to do their job.

Administrators can Face Temptation too

There are sometimes when things don’t go to plan though. An administrator, like anyone else in a position of power, may find that they have the chance to benefit themselves. Temptation can come in all walks of life and when it comes, many people find that they cannot resist it. The vast majority of administrators will be able to resist this temptation and they will do their job as planned and expected, but there will be some professionals who find that they are unable to do their job in the manner that they should.

This is the latest spin in the saga of Rangers. The Glasgow football club entered administration in 2011 and in 2012, the football club was liquidated and a new club was formed. This new club was granted entry to the bottom tier of the professional league system in Scottish football and some fans have been quick to proclaim that they are the same team. The issue of there being two different licences for two different teams at the same time and the small matter of incorporation meaning that the club was the company and the company was the club seems to have been overlooked by the fans.

There has been a lot of Anger amongst Rangers Fans

Even the Rangers fans who can’t or won’t admit it’s a new club will profess to being angry about a lot of things and the news that administrators at the club have been charged with fraud will not make them any happier. There has been a pattern with Rangers fans in that they adore anyone who is at the top table of the club, only for these people to let them down. Sir David Murray brought many great times to Rangers fans, but his overspending and tax schemes set into motion the downfall of the club.

Craig Whyte was lauded from the stands in the streets while the Rangers fans protested against the BBC and the SFA who the fans believed were persecuting Whyte. Now they think that these bodies didn’t do enough to question Whyte. The same can be said for Charles Green after he bought the assets of the old club and set up a new club. Charlie was the man who would take the club to the top but he too has been booed and harassed on leaving court this week.

Then you have the administrators. The only administrators who have actually tried to add to the wage bill after administration! Most administrators would look to slash the wage bill but for some reason, the administrators appointed by Craig Whyte kept virtually all of the playing staff on board and made cuts to the office workers and maintenance staff. There was outrage around the country at that behaviour but there were cheers from the Rangers fans, who believed that maintaining the big name players was vital in sustaining the identity of their club.

Craig Whyte, Charles Green and the two administrators David Whitehouse and Paul Clark have all been charged under Section 28 of the Criminal Justice Licensing Act 2010, which provides cover for serious organised crime offences. The four men have also been charged with conspiracy while Charles Green is facing a fraud charge and an offence under Section 190 of the Companies Act 2006.

Given the high level of emotion around this case, there is no doubt that there is a need for highly experienced and hugely professional defence solicitor. At this stage, it would be a foolish man that makes any predictions about the outcome, or even what half of the story, of this case will.

Graham McCall is a freelance writer who loves football and legal stories. Whenever these stories come together, he loves to get behind the headlines and find out what the story is really about and then sharing it with the world.