Builder ordered to repay more than £190,000 after stripping assets from failing company
A company director who misused business funds to clear the finance on a high-value Audi and sold plant machinery that was still subject to hire purchase agreements has been ordered to repay more than £190,000. If he fails to do so within three months, he faces a prison sentence.
Vasile Hrusca, a builder from Hornchurch, diverted over £67,000 from his struggling construction company in 2019 to settle the finance on an Audi RS6 he had purchased the previous year for nearly £75,000. At the same time, he sold seven items of plant machinery, including mini-diggers and dumpers, that were still under finance agreements, using the proceeds to fund gambling. The equipment had a combined value of just over £84,800.
Following liquidators being appointed to the company in September 2019, the Insolvency Service launched an investigation. The case resulted in criminal proceedings earlier this year, during which Hrusca received a suspended sentence and a four-year director disqualification. He was also ordered to complete unpaid work and rehabilitation activity.
At a confiscation hearing on 25 November at Snaresbrook Crown Court, the court ruled that Hrusca must repay £190,577, inclusive of interest. He has three months to repay the amount in full. If he fails to do so, he will serve a two-and-a-half-year prison sentence, and the debt will still remain payable in full.
Background to the case
Hrusca’s company, Vasile Hrusca Ltd, was incorporated in 2007 and operated in the construction installation sector. In early 2018, the company entered into several hire purchase agreements. First for the Audi RS6, and shortly afterwards for seven pieces of plant machinery financed through two different banks. Hrusca personally guaranteed the finance on the vehicle.
Despite the company entering financial distress the following year, Hrusca settled the remaining finance on the Audi in June 2019 using company funds. During confiscation proceedings, he also confirmed that the car has been located in Romania since early 2020.
The plant machinery finance agreements, however, were not settled. In interviews, Hrusca admitted selling the equipment for cash and using the money for gambling.
His actions ultimately resulted in criminal charges, a suspended custodial sentence, director disqualification, and now a substantial repayment order under the Proceeds of Crime Act.