Two directors of a property investment company have been disqualified from directorship for a total of 11-and-a-half years after misusing their investors’ money, Insider News Midlands reported. 

Husband and wife Gary and Michelle Hexley, who were previously directors of Greenfield International Limited, have been banned as of the 14th November 2012 following an investigation by The Insolvency Service. 

A full-scale examination of Greenfield International’s practices found that Mr Hexley accepted over £584,764 of investment from mostly retired workers, who were led to believe that their money would be invested in properties for rental and eventual sale.

Rather than investing their money, however, Mr Hexley paid more than £500,000 of the funds to another company under the couple’s control which was building a new housing development in central Birmingham.

This company later collapsed and went into administration in September 2009, with losses of over £1.3 million.

In October 2010, Greenfield International then went into liquidation with losses totalling more than £2 million, along with almost £1.2 million of outstanding deposits taken by Mr Hexley.

The title reports that the money was used to fund an “off plan” development in Wolverhampton, where properties were sold before they were constructed or completed. 

No buildings on the plot, however, were ever built.

The investigation also found that, while her husband ran Greenfield International alone, Mrs Hexley had neglected her duties as a listed director by not playing an active part in its management.

Mr Hexley had previously been declared bankrupt in May 2010, before being banned by the FSA in June 2011 from carrying out any regulated activity. 

The fraudster was also fined £20,000 by the FSA for his part in the Greenfield scam.

While his wife received a two-and-a-half year ban from directorship for her part in the deception, Mr Hexley has been banned for nine years.

The Insolvency Service’s ruling restricts the couple from managing or controlling a limited company in any way for the duration of the ban.

Robert Clark, The Insolvency Service’s Head of Company Investigations Birmingham, said: “Directors who misuse legitimate investment moneys entrusted to them by retired members of the community are a scourge on society.

“The undertakings signed by Gary Hexley and Michelle Hexley send a clear message to other company directors that if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by the Insolvency Service and as a result removed from the business environment.”

Please note: Greenfield International Limited has no relationship with bridging lender Greenfield Capital.