Walsall director sentenced after running two companies for more than five years while banned

Bharat Jogia was disqualified as a company director for 13 years in 2014 after not disputing that he caused Jogia Jewellers (UK) Limited to wrongfully claim more than £2 million from HM Revenue and Customs (HMRC).

The ban should have prevented Jogia from running, managing or promoting any company until 2027. But he ignored the disqualification and continued to control pharmaceutical companies Diamond Pharma Limited and BHJ Consulting Ltd.

Jogia was aided and abetted in breaching his disqualification by his wife Louise Jogia, the official director of BHJ Consulting Ltd.

Bharat Jogia, aged 71, of Aldridge Road, Streetly, Walsall, was sentenced to nine months in prison, suspended for 18 months, when he appeared at Birmingham Crown Court on Friday March 27.

He was also ordered to complete 100 hours of unpaid work and disqualified as a company director for 10 years.

Louise Jogia, aged 57, of the same address, was sentenced to seven months in prison, suspended for 18 months, at the same hearing. She was also disqualified as a company director for 10 years.

Mark Stephens, chief investigator at the Insolvency Service, said: “Bharat Jogia showed complete contempt for the law by breaching his director disqualification ban for more than five years. Director disqualifications exist to protect the public and maintain confidence in UK businesses. When someone is banned from running companies, it is because they have proven themselves unfit to do so.

“Louise Jogia acted as a front to shield her husband, providing signed documentation and support where needed.

“Ignoring a disqualification is a serious criminal offence that undermines the entire system designed to keep rogue directors out of positions where they can cause further harm to creditors, employees and the wider economy. The Insolvency Service will continue to pursue and prosecute those who flout such bans.”

Jogia signed a disqualification undertaking – an agreement where company directors suspected of misconduct voluntarily disqualify themselves instead of taking the case to court – in June 2014.

He did not dispute causing Jogia Jewellers (UK) Limited to participate in transactions which were part of a scheme to defraud HMRC. Jogia's company claimed more than £2.3 million from HMRC which it should not have done.

The disqualification meant Jogia could not be a director of any UK-registered company or be involved in forming, marketing or running a company. But he continued to run Diamond Pharma Limited and BHJ Consulting Ltd in all but name from the day of his disqualification up until August and July 2019, just before liquidators were appointed to both companies.

Investigations by the Insolvency Service revealed Jogia instructed lawyers on conveyancing matters, approved company accounts, authorised agreements with customers and suppliers, managed staff and received more than £80,000 in consultancy services – all for Diamond Pharma Limited.

Under Jogia’s management, Diamond Pharma Limited also racked up more than £445,000 in tax debts, leading to HMRC applying to have the business wound-up.

For BHJ Consulting Ltd, Louise Jogia provided the trading history to the liquidator by email, noting she and her husband set up the company "as a consultation service to the pharmaceutical industry". However, matters which as a director Louise Jogia would be expected to deal with such as instructions to lawyers on conveyancing matters, the company's IT decisions and payment to creditors, were all dealt with by her husband.

Analysis of BHJ Consulting Ltd's bank account showed it was used to pay personal bills for Bharat and Louise Jogia.

The Insolvency Service said it was seeking confiscation of funds against the Jogias under the Proceeds of Crime Act 2002.