Medical Recruitment Publisher Closed Down Following Investigation

An advertising recruitment company has been wound-up by the High Court in Manchester following an investigation by the Companies Investigation Branch (CIB) of the Insolvency Service.

Fast Track Media Limited (”Fast Track”), based in Leamington Spa, carried on business as a publisher of a medical recruitment journal called the ‘MRJ’, and generated income from the sale of advertising space for medical personnel recruitment advertisements. The company dealt with NHS Trusts throughout the UK, private hospitals, charities, and advertisers based overseas.

CIB’s investigation found the company operated by cold-calling employers, who had already placed recruitment advertisements in established third party publications. The investigation found that in many cases the employer believed they were being contacted by the reputable publication, rather than by Fast Track and that the employer did not understand that they were agreeing to a new order being placed.

In making the winding up order the court found, amongst other things, that:-

- The company operated with a lack of commercial probity. Its income and business being dependent on sales techniques which were improper, misleading and which, were designed to and did mislead potential customers in order to induce them to pay for advertisements,

- Potential advertisers were pressured into completing and returning booking confirmation forms,

- There was a lack of commercial benefit to advertisers, and the existence of the company’s website was not externally advertised,

- The high level of unpaid sales invoices (around 73 per cent during one period) was indicative of a high level of advertiser dissatisfaction,

- The company failed to maintain or deliver up adequate accounting records.

Source: Insolvency Service

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