A car dealer from Yorkshire has been ordered to pay back £6 million for defrauding customers or face seven years in jail.
Kirk Claus, 47, was jailed for three years back in 2012 after he was found to be leading a group of six men that were selling dodgy vehicles to thousands of customers under the name Chequered Flag Sales. They sold cars that had been written off by insurance companies, cars with disguised faults and cars under false warranties, earning more than £15.5 million by doing so.
Not only was Mr Claus banned from being a company director for five years but he will also find it almost impossible to obtain a motor trade insurance policy necessary to run a car dealership; having such a chequered past will set off immediate warning signs with any insurance providers.
Following his initial trial two years ago, a Confiscation Order was then lodged against Mr Claus at Leeds Crown Court, the Hebdenbridge Times reported. It was discovered that he has been guilty of contempt of court after failing to reveal his full assets, for which he was given nine months in prison.
An investigation under the Proceeds of Crime Act ruled that he must pay back £6,203,025.72 within six months or face an extended period in prison. He was also told to pay back £44,430.20 in compensation to 19 of the victims from the monies confiscated.