Broke Businessman Up To Old Tricks Jury Told

A notorious bankrupt rogue trader – jailed and banned from running any business – plunged his new partners and suppliers into debt after illegally setting-up two companies on his release, a court heard today.

Royston Rees, 61, (pictured) of Glanmor Road, Llanelli, South Wales was a “shadow partner” in the businesses, hiding behind other named directors who were registered with Companies House.

He has pleaded not guilty at Croydon Crown Court to contravening a company director disqualification order between July 12 2005 and October 31 by running Kay’s Pantry Ltd. and R & W Distribution Ltd., which was registered on November 22 2007.

His ex-girlfriend Kay Meadows, 67, of Hensworth Road, Ashford, Middlesex denies aiding and abetting Rees to contravene the order in relation to Kay’s Pantry Ltd.

Prosecutor Mr. Edmund Burge told the jury Rees, who was made bankrupt in 1986, 1992 and 1998, was jailed at Cardiff Crown Court in January 2001 for illegally running a business when banned and disqualified for another seven years.

“These two counts represent two occasions Rees deliberately broke the rules in relation to him running a company.

“The rules are there to offer protection from unscrupulous or incompetent people.”

Kay’s Pantry was a food distribution company registered on July 12 2005 with Meadows and butcher Barry Fleet the named directors, but secretly run by Rees, say the prosecution.

“Rees found the customers, found the suppliers and negotiated the contracts and did all the talking on the company’s behalf at various meetings,” said Mr. Burge.

“The company began failing and many of the suppliers were owed money and Rees was increasingly evasive and wrote cheques to them that bounced.”

In January 2006 Barry Fleet quit, but was liable for debts of £10,000 and continuing payments on a delivery van.

“Rees was a shadow director running the business from the background and was careful not to be formally appointed, but was the directing will and mind of the company,” added Mr. Burge.

“Meadows knew in 2001 Rees was bankrupt and facing charges of being involved in the management of a company.

“She knew he should not be running a company, but helped him do it by being involved as a company director and leaving him with the day to day running of the business.

“In 2006 the couple split-up and Rees returned to his native south Wales and set up R & W Distribution, a fashion accessories company, with John Wood.

“Mr. Wood and his wife were the named directors, but Rees was the driving force and public face of that company.

“Again he failed to pay suppliers and there were disagreements within the company about allocation of the stock.

“He is an incompetent trader who cost his business partners and suppliers thousands of pounds and left them bearing the debts.”

The trial is expected to last three weeks.