A married couple who ran a recruitment company have been banned from running an employment agency for 10 years, following an investigation by the Employment Agency Standards inspectorate (EAS), part of the Department for Business, Innovation and Skills (BIS).

The hearing at Ashford Employment Tribunal heard that Steven Mark Howard was company secretary, while his wife Amanda Howard was a director of Hire Management based in Mitcham, Surrey. At the same time that Mr Howard was involved in running Hire Management, he was also employed by two different companies in a recruitment capacity: ERA Technology and Railtrack (now Network Rail).

The Employment Tribunal heard that as a result of an investigation by British Transport Police, the couple from Heathfield, East Sussex, pleaded guilty to two charges of false accounting on 4 April 2008 at Kingston Crown Court.

Mr Howard used his position at ERA to enlist the recruitment services of Hire Management then raised invoices for advertising costs for in more than the amount actually incurred, claimed false expenses and invoiced ERA for placing candidates he had placed himself.

While working at Railtrack as a recruitment manager, Mr Howard had signed a contract agreeing not to hold any related posts while employed by them. Despite this, in the three years he worked there, Hire Management gave invoices to Railtrack for placing contractors and staff totalling £1m.

Mrs Howard was responsible for the administrative and accounting functions of Hire Management and generated the invoices her husband approved. They both claimed expenses from Railtrack they were not entitled to but which had been authorised by Mr Howard.

Steven Howard was given 18 months’ imprisonment, while Amanda Howard was sentenced to 40 weeks’ imprisonment suspended for 24 months, and ordered to undertake unpaid work for 240 hours.

Following a confiscation hearing both Mr and Mrs Howard were ordered to pay back over £44,000 each plus £20,668.98 in compensation and were banned from running or being concerned with the running of an employment agency or employment business for a maximum period of 10 years.

Edward Davey, the minister responsible for employment relations, says: “A vibrant and well-run private recruitment sector is a vital part of this country’s economy. However, it is essential that employment agencies operate within the law and deal with work-seekers and hirers in a fair and transparent manner.

“This Tribunal decision sends out a clear message to the industry that we will take action against those agents who act illegally.”

The Howards’ conduct was brought to the attention of the EAS by the British Transport Police, and EAS assisted the police in their investigation.