Two brothers who ran businesses in the Country Antrim town of Ballymena in Northern Ireland have been banned from being company directors after they were forced into bankruptcy.
Joseph and Gerard McLarnon were brother and business partners who ran a hotel management company called MCL Investments (NI), which formerly operated the Leighinmohr House Hotel in Ballymena. The hotel is still up and running, but is operated by another company.
MCL Investments (NI) ran up huge debt problems under the direction of the brothers, and was eventually pushed into administration in summer 2009. The company had debt management problems in excess of two million pounds, whilst only having assets of £253,000.
At the time it wound down and all of its debt problems were revealed, it was found that MCL Investments (NI) owed nearly £1 million to unsecured creditors, £500,000 to the bank and £625,000 in unpaid tax. An investigation undertaken by the Department of Enterprise, Trade and Investment suggested that the brothers had effectively financed the running of their hotel by not paying tax.
The investigation also found that the brothers had misused around £484,000 of company money by lending it to themselves and other related parties.
The brothers themselves faced personal bankruptcy soon after their company was dissolved, with Gerald McLarnon being declared bankrupt in October 2009 and Joseph McLarnon being declared bankrupt in November 2010. They have both been banned from acting as company directors for a period of at least eight years.
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