A former director of a North Yorkshire car dealership has been sentenced to prison after admitting to fraudulent trading that resulted in approximately £1.5 million in losses for customers and investors. The case focused on the misuse of customer funds and vehicle-backed finance arrangements.
John Patrick Hawkins, 66, received his sentence at Bradford Crown Court. He pleaded guilty to fraudulent trading related to his management of Specialist Cars of Malton Limited from late 2018 to February 2020.
According to court reports, the business, which dealt in high-value Porsche vehicles, faced growing financial difficulties as losses increased and overdraft reliance expanded. Judge Ahmed Nadim stated that Hawkins, as the sole director, continued trading while insolvent, using money from new customers to cover existing debts. The judge characterized this as a sustained dishonest course, not a brief lapse, with customer deposits and sale proceeds diverted to keep operations running.
The court heard that by 2019, Hawkins was in serious financial trouble and began misleading customers, lenders, and investors. This included selling vehicles on behalf of owners without remitting proceeds and securing finance against vehicles he did not own. Judge Nadim noted the £1.5 million figure did not fully capture the impact on victims, many of whom had trusted the business.
One victim was a widow persuaded to sell her late husband's Porsche for retirement funds. The car was sold without her knowledge, and she received no payment. The judge said her financial security was taken.
Dozens of customers and investors were affected. Hawkins obtained hundreds of thousands of pounds through vehicle-backed loans and investment schemes tied to classic and high-value cars. False documents were used to reassure creditors and lenders, extending trading as losses mounted.
In mitigation, defense barrister Susannah Proctor said Hawkins believed he could recover the business, but later liquidation showed that belief was mistaken. She stated he was ashamed of the impact on his family, had no significant assets, and now lives in rented accommodation. Further proceedings under the Proceeds of Crime Act will address confiscation.
Judge Nadim imposed a 10-year ban on Hawkins acting as a company director. A confiscation hearing is expected later this year.
North Yorkshire Police fraud investigator Constable Emma Harris said Hawkins repeatedly lied to customers and falsified documents to maintain the appearance of a viable operation, adding that the financial consequences for victims were severe.