A WORCESTERSHIRE man claimed he was a millionaire when he set up a consultancy to oversee a Worcester building project, a court was told.

But the truth was that 64-year-old Dennis Parry was an undischarged bankrupt and did not have clearance to take part in any business.

Parry, of Verbena Close, Stoke Prior, near Droitwich, pleaded guilty at Worcester Crown Court to being an undischarged bankrupt and acting as a company director without leave of a court.

He was given a four-month jail sentence suspended for two years and ordered to do 150 hours unpaid work. He was also disqualified from being a company director for seven years.

Nicholas Smith, prosecuting for the Department for Business Innovation and Skills, said Parry was made bankrupt in December 2004 with debts of £14,000. Two applications for discharge had been rejected. But in 2009 he had set up TPM Consultancy with himslef as sole director. He had entered into contracts, describing himself as a millionaire. One of the contracts was for Reindeer Court, Worcester.

Some cheques paid to sub-contractors had bounced and they were unaware he was a bankrupt, said Mr Smith. It was alleged he owed in the region of £20,000. Neil Davis, defending, said Parry had been running his own company until he fell ill with bowel cancer in 2004. When the business failed, he tried to fight off bankruptcy. He finally had to sell his home to satisfy his creditors.

Since the investigation began, he had resigned as a director and had made full admissions of his wrongdoing. He has been married 40 years and his wife is standing by him. He is still able to make a living by instructing and employing sub-contractors.

Judge John Cavell said it was obvious Parry knew what he was doing, especially as two applications for release from bankruptcy had been refused. There had been a flagrant breach of the law in setting himself up as a director of a company. The judge said he had been told that Parry was no longer bankrupt and was still working. Because of his illness, he was able to suspend the prison sentence. Confiscation proceedings and an application for costs would be adjourned.