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An entrepreneur is suing the Governmentís business
advice network after advice given to her by a blacklisted director
allegedly sent her company to the wall. Madi Sharma is pursuing
Business Link in Nottinghamshire for more than £200,000
for losses sustained by her and her creditors when her company,
Original Eastern Foods, became insolvent in December last year.
After the firm went bust on December 4, 2002, she discovered
that the adviser she had been appointed by the service was a
disqualified director. She alleges that the poor advice he gave
her sent her company, previously one of Britainís biggest
provider of Indian snacks, to the wall.
Ms Sharma has informed Business Link about her concerns and
has instructed her lawyers, Gateley Wareing, to pursue her claim.
The Department of Trade and Industry is also investigating the
case. "I had run a successful company for nine years when
this man came in supposedly to help me. I had no reason to doubt
his advice", she said.
Ms Sharma's business, which she launched from her kitchen
in 1994, was based in a regeneration area of Nottinghamshire.
She employed only the long-term unemployed. She alleges that
the adviser told her that he had secured funding for the company
from three investors. At the 11th hour, she claims, it transpired
the financiers did not exist and the company went rapidly downhill
after that.
Business Link Nottinghamshire confirmed that the director
was disqualified at the time he worked with Ms Sharma. A spokesman
said: "Advisers are asked to declare any disqualifications
when they join us but the man did not. We did review our processes
immediately after we found out and it could not happen again."
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