A second director of the collapsed Louis Group IoM has signed a voluntary undertaking of disqualification.

Lynn Keig has agreed to be banned from being a director, secretary or registered agent of any company for a period of six years until June 28, 2023.

Another Louis Group director, Rousseau Moss - a pastor at the Living Hope church in Port St Mary - gave a similar undertaking to the Financial Services Authority last year.

High court proceedings are continuing against five other Louis Group directors, which could result in their disqualification.

They are Louis Group chief executive officer Dr Alan Louis together with John McCauley, Dirk Frederik Mudge, Lukas Nakos and Andrew Mark Rouse.

Mr Nakos and Mr Rouse are both team leaders at the Living Hope church.

Ms Keig, 61, of Croit-e-Quill Road in Lonan, was a director of a number of Louis Group entities between 2007 and 2011.

She admitted unfit conduct for failing to exercise proper financial control and allowing mismanagement of investments in Louis Group funds.

She also failed to make adequate assessments of the risks associated with lending between Louis Group entities and failed to challenge information.

Her disqualification applies to Manx companies and any firm operating under any relevant foreign law.

Liquidators of Louis Group IoM concluded there had been a substantial loss of investor capital running into tens of millions of pounds with most of its island-based entities being insolvent.

They found ’highly improper’ activity with investor funds, a culture of fear and intimidation with Dr Louis having ultimate and absolute control, misleading promises of high returns and low risk, unlicensed deposit taking, inter-mingled funds and poor accounting records.

They also discovered evidence of substantial sums paid to Dr Louis and his trusts from money sourced from investors and accounted for as debts for which he denies liability.

The undertaking of disqualification signed by Ms Keig refers to Dr Louis treating one entity, LG SP Investments, as his ’personal domain’. Without any consideration of its solvency, payments were made for ’improper purposes’ to connected individuals and companies.

Financial records showed payments totalling more than £8.3m being made to Dr Louis, some to meet personal obligations such as mortgage or other debts.

But Ms Keig’s undertaking makes it clear that there is no evidence that she failed to adequately maintain the records and books for LG SP during her limited time as director, between February 2007 and July 2008.

LG SP had been engaged in unlicensed deposit taking and unregulated money lending. But Ms Keig said she had relied on legal advice taken in 2008 which advised it was not engaged in such activity. For his part, Dr Louis denies wrongdoing and claims he has been unjustly persecuted.