Developer told to repay cash from account

A PROPERTY developer who cleaned out his company's bank account just before going bust has been ordered to return the money.

Paul Dickens said the 270,750 he took was used to repay investors because he had given them his word they would get their money back, together with a profit.

But liquidator Keith Anderson won a court order for the return of the funds so that he could distribute them among creditors.

Although the action at the Court of Session in Edinburgh was brought in Mr Anderson's name, the case was bankrolled by Hunter and Clark, main contractor in one of Mr Dicken's projects and the largest single creditor.

Judge Sir David Edward QC agreed that Mr Dickens, of Glenlockhart Bank, Edinburgh, had provided personal guarantees to investors.

"There is no doubt that the whole of the sum was applied by him towards satisfaction of the loans."

But, he added, Mr Dickens had "prejudiced the general body of creditors" by doing so.

Mr Dickens was also told to hand over to the liquidator 10,000 which had been allowed as a discount to one of his backers when he bought a flat in the development.