Liverpool businessman and former Widnes Viking boss Stephen Vaughan hit by 11 year directorship ban

Nov 11 2009 by Luke Traynor, Liverpool Daily Post

Stephen Vaughan

A LIVERPOOL businessman and former chairman of Widnes Vikings RLFC cannot act as a company director for the next 11 years following alleged VAT fraud.

The order was made against Stephen Vaughan as a result of his conduct with the Vikings once the club entered administration in October 2007 with liabilities of over £1.6m.

The ex-chairman signed a disqualification undertaking after an investigation by the Insolvency Service’s public interest unit into his behaviour at the club.

It included details of alleged “carousel fraud” carried out by Mr Vaughan, designed to prop up the finances of the rugby league club, which was technically insolvent at the time.

Mr Vaughan arranged for the club to “purchase” three consignments of clothing from a UK company, and on the same day “sold” the clothing to a firm based in Spain for just over £3m.

The transactions appeared to be part of a linked series of purchases between the UK and Europe.

The order states Mr Vaughan then attempted to reclaim VAT for the club, but Her Majesty’s Revenue and Customs refused the repayment.

Payment for the goods was made via the First Curacao International Bank, based in the Netherlands Antilles.