Medical Recruitment Publisher, Modern Media Publishing Ltd., Wound Up in Manchester High Court

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. Modern Media Publishing Limited (”Modern Media”"), based in Leamington Spa, carried on business latterly as an operator of websites carrying general and medical recruitment advertisements, and formerly as a publisher of a medical recruitment magazine called ‘British Medical Careers’.

The company dealt with NHS Trusts throughout the UK.

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 Modern Media and that the employer did not understand that they were agreeing to a new order being placed.

The sole director of the company was Vijaya Bhaskar Bandi. CIB’s investigation also found that a significant number of complaints had been made about the company to the NHS’ Counter Fraud and Security Management Service.

In making the Winding-up Order the Court found 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,

- The company’s websites contained inaccurate and misleading statements,

- There was a lack of commercial benefit to advertisers, in that the existence of the company’s websites were not externally advertised and they carried few current recruitment vacancies,

- The high level of unpaid sales invoices (around 69%) was indicative of a high level of advertiser dissatisfaction,

- The company failed to maintain or deliver up adequate accounting records, particularly in respect of the printing and distribution of the British Medical Careers magazine, and the significant payments made to the company’s sole director.

Source: Insolvency Service

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