A former company director who was responsible for an illegal tip could face jail over his dealings following a £199,000 bankruptcy claim.
James Manning, 52, of Snowdrop Close, Leyland, admitted a charge of failing to account for losses which relates to a sum of £59,430 he made from selling his stables in Clayton-le-Woods, near Chorley, after claiming bankruptcy.
During a hearing at Preston Magistrates Court he admitted two further charges relating to his failure to pay county court judgements (CCJ) over money he owed to two firms - SHP Valuers, which assisted him in the sale of the stables, and Cambridge Finance, which financed him.
The defendant, who used to run waste firm McCann Waste Managers Ltd, told officials he spent the money on gambling and alcohol.
Charlotte Atherton, prosecuting, said: “ This was a deliberate fraud on two separate creditors over a period of between six and 12 months, in the face of two CCJs with complete disregard for these. Despite having £59,000 he failed top pay these two creditors.
“He says instead he spent the money on gambling and alcohol in the main part, and we say this is fraudulent from the outset.
“It’s an aggravating feature that the only reason he had the money is because the firms he owed assisted him in the sale of the property which released the £59,000.
“He had declared bankruptcy, leaving a debt of £199,000.”
Rachel Adamson, defending, said: “ There’s another side to the story. He has lost everything he’s ever had, a very successful business.
“It was so successful that he was delivering 100 skips a day.
“It was like the light had been turned out when the recession hit. When many of his clients stopped building houses, he found he was delivering 30 to 40 skips but was still geared up to do 100.”
The case comes after he was jailed four months for contempt in February after failing to clear up a stinking mountain of fly-blown refuse in Wigan.
He will be sentenced at Preston Crown Court on July 29.