York company director ordered to pay £40,000 for SIA licensing infringement

On Friday 11 June, Christopher Downes appeared at York Crown Court and was ordered to pay £20,000 within six weeks. He must also pay another £20,000 within six months or otherwise face 18 months in prison. 

York Crown Court’s Proceeds of Crime Act Order follows Downes’ conviction at York Crown Court on 11 February this year. The court gave Downes a 60-hour Community Order, which he must complete within a period of 18 months. He was also required to pay prosecution costs of £2,735 within six weeks plus a victim surcharge.

In the latest proceedings, York Crown Court heard that Downes had received a criminal benefit of £40,000. The Proceeds of Crime Act 2002 sets out the legislative scheme for the recovery of criminal assets, with criminal confiscation being the most commonly used power. Confiscation occurs after a conviction has taken place. If a person has a Proceeds of Crime Act Order against them they have to pay it regardless of whether or not they serve a jail sentence.

Specifics of the case

For several years, Downes was a director of F1 Security Services Ltd based in York. He was identified by SIA investigators as working without a licence. It’s a legal requirement that a director of a security company should be in possession of a valid SIA licence.

On 22 April last year, Downes applied for an SIA licence. The following week, on 28 April, he resigned his directorship from F1 Security Ltd. However, the investigation had identified his illegal directorship.

On 11 September 2020, Downes was formally interviewed by the SIA’s investigation team. He made a full and frank admission to working as a director without any type of SIA licence and failing to notify the SIA of his previous conviction within a reasonable timeframe.

Working while unlicensed

The SIA investigation identified that Downes’ previous SIA licence had expired on 24 September 2017. From that time until April 2020, he continued to direct the company while unlicensed. He supplied security industry services to a number of clients and also managed licensed security operatives who conducted licensable activity until such time that he resigned his directorship.

In addition, Downes had received a criminal conviction at York Crown Court on 3 November 2014 which he failed to disclose to the SIA.

Nathan Salmon, criminal investigations manager at the SIA, observed: “Downes profited significantly from working illegally in the private security industry. His actions demonstrated that he was not fit and proper to work in the sector. The Proceeds of Crime Act Order will help to redress the imbalance that operating illegally has on the private security market. The confiscation demonstrates that crime does not pay. Downes now has a criminal record and a significant financial penalty to address.”