Rebecca Hubbard
Posted: Tuesday, August 10, 2010 3:44 pm

The Insolvency Office has disqualified former Wrapit directors Peter Gelardi and Pepita Diamand from acting as company directors for a combined total of 15 years.

The decision followed an investigation into their conduct as directors of the failed wedding gift service, which revealed that they continued to trade even when it was insolvent. Managing director Mr Gelardi and retail director Ms Diamand were disqualified for eight ears and seven years respectively. 

According to Insolvency Service investigators, between June 2008 and July 2008 Wrapit made a number of false credit card refunds which came to a total of £243,445. These 'refunds' were processed through the company's merchant card processing facility, despite no underlying sales transactions taking place. 

The money was then used to pay suppliers, salaries, and Mr Gelardi and Ms Diamand themselves. This meant that Wrapit continued trading and managed to continue taking advance payments from new customers despite the company being insolvent. These new payments totalled at least £872,000. 

According to the investigation, Mr Gelardi made the decision to make the false refunds and Ms Diamand assisted. 

The business Wrapit began trading as an online wedding list and gift service in 2001. However it has been revealed that it never made a profit. When it collapsed in 2008, the company owed more than £4m, with 72,000 wedding gifts undelivered.

Administrators were finally called in on August 4 2008 when debts reached more than £7m. 

Insolvency Service director of company investigations, Vicky Bagnall said: "In this sad case thousands of newly-weds have had their big day spoilt following the wrong-doing of Wrapit's directors. The undertakings signed by Gelardi and Diamand send a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by The Insolvency Service and as a result removed from the business environment."