Seven-year bans for sisters who enabled insolvency avoidance scheme and put creditors at risk of financial loss

Karen Mortimer and Joanna Seawright have been disqualified for their part in a scheme designed to subvert insolvency legislation

Both facilitated the Atherton corporate rescue scheme by becoming directors of a combined 138 struggling companies without independently verifying their financial positions, failing to look into the location of more than £42 million in assets and leaving creditors with combined debts exceeding £67 million

Mortimer and Seawright did not dispute their misconduct and agreed to be disqualified for seven years rather than taking the case to court

Two key enablers of a scheme designed to undermine insolvency legislation by allowing business owners to keep their assets and drop debts have been banned as company directors.

Sisters Karen Mortimer, 67, and Joanna Seawr