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Network Data ARs to lose up to £5m in commission

The administrator of Network Data says it is unlikely that former appointed representatives will get any of the commission they are owed, which could total around £5m.

In its administration proposals, Baker Tilly says Network Data has secured debts of £3,856,440, owed to Bank of Scotland, and that the Network Data director’s report shows unsecured debts of £1,941,348.

Baker Tilly says it has had an estimated £5,172,836 of unsecured creditor claims, but only £1,335,031 is listed as owed commission in the director’s report.

Baker Tilly assistant manager Robert Young says the disparity in unsecured claims is the result of differences between the administrator’s report and the directors’ report. He says: “In the future we will be able to have a more exact number on unsecured claims.”

A statement from Baker Tilly says: “We regret to advise that we do not anticipate a distribution to the unsecured creditors of Network Data Holdings”.

Former AR AnyMortgage principal Heather Furby, who is not a listed creditor but says she is owed money, says many more brokers are in a similar position.

Clocktower Mortgage principal Paul Halfyear, who says he is owed £2,937, believes this serves as a warning to other ARs whose commission is not ring-fenced by their network.

Baker Tilly says it is preparing to sell Network Data’s HQ at Botleys Mansion, which is valued at £4.475m. This would pay off the secured debt plus staff costs.

The group owes the FSA £42,478. Other big creditors are listed as chief executive Richard Griffiths, who is owed £52,384, and directors Alex Cotton and David Blackmore who are owed £17,851 and £15,381 respectively.

According to the report, there still remains £47, 721 in unpaid commission currently being held by providers. Baker Tilly says this will not be given directly to ARs as they are unsecured creditors.


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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Network Data Commission Scandal
    Former Officers of Network Data advised their AR’s that commissions were delayed due to system problems for over 12 months. Full documentary evidence of this is held by every ex-AR. It is now apparent that this was fundamentally untrue. Where has the money gone? Why are some of these people still working in our industry? Does anybody care that nearly 600 independent firms have been defrauded of their legitimate earnings?

  2. Insolvent Trading
    If there was all this debt outstanding and the AR’s were being told for up to 12 months that there were system issues is it not just simply the case that Mr Griffiths et al were trading insolvently. And if my company law knowledge is right does this not mean that from the point the company was insolvent and continued trading that the officers of the company lose the protection of the limited liability status??

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