A couple fraudulently ran a fine art book business

A couple fraudulently ran a fine art book business after they had been made bankrupt, a court heard today.

(tue)

Gordon Saks, 63, and his wife Mary, 62, chalked up losses of over pnds stlg 350,000 when they were running the shop in Manchester Street, Marylebone.

They had gone bust several times but palmed off creditors with lies and false promises of repayment when they were taken to the High Court.

The fraud came to light 16 years after it began in 1982 when the Department of Trade and Industry sent in an investigation team.

Mrs Saks told the investigators that she only had one bank account, which was found to have a credit of just two pence.

Investigators then discovered the couple used four Lloyds accounts – all of which were overdrawn.

Before moving to Lloyds the pair had accounts closed at Nat West and the Bank of Ireland when managers realised Mr and Mrs Saks were a serious liability.

Investigators also discovered that every time their business was declared bust Mr and Mrs Saks would just change the name and carry on as if nothing had happened.

On its liquidation, their company was known as Alpine Fine Art Books Ltd but had been previously called both Alpine Fine Art Collections and Cromwell Editions Ltd.

Prosecutor Mr John McGuinness told Blackfriars Crown Court how Alpine Fine Art ran into trouble in 1994 because Mr Saks would use one overdrawn bank account to pay off another.

‘The bank refused to carry on offering banking facilities,’ said Mr McGuinness.

‘At that stage, in an endeavour to salvage the business, Mr Saks prepared to resign as a director Alpine Fine Art collections.

‘Mrs Saks was appointed in her husband’s place as a director of the company.

‘The bank continued to offer the facilities which it had been offering to the two companies.

‘

Mr Saks pleaded guilty to three charges of acting as a manager while bankrupt.

His wife admitted failing to making a material admission following her bankruptcy and acting as a manager while bankrupt.

The couple of (4) Waterside Cottages, Bray, Berks are due to be evicted in July.

Judge Alan Hitching told the couple they should have stopped trading as soon as they were disqualified from running businesses.

‘You were two people who have been running fine arts businesses over a number of years and held a high reputation,’ he said

Turning to Gordon Saks he said: ‘You knew perfectly well that you weren’t supposed to be a director of a company, but you carried on as you did before.

‘

But Judge Hitching said there were ‘exceptional circumstances’ which meant the couple could be spared immediate jail terms.

They are both in their sixties and their pnds stlg 210,000 is now to be sold, the judge said.

According to pre-sentence reports there was little chance of the couple reoffending.

Gordon Saks was given a 15 months sentence suspended for two years and was banned him from being a director of a company for seven years.

Mary Saks was sentenced for six months suspended for one year ‘reflecting her lower level of criminality’.

The couple were clearly relieved as they walked free from court.

ends

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