I was a victim of such a scam company in the 1970s and to my knowledge the law has hardly changed since then. It is simple to set up a limited company, then borrow money from a bank, take orders, and then go bust leaving huge debts without any intention of providing goods or services. It is this intention which is difficult to prove.
Many such cases have been in the press, and most of us have been victims of such 'companies' at some time in our lives.
Yet I don't believe there is any law to prevent a director doing this, and then immediately start another company or companies and doing it again. And again.
I know of one person who has done it six times, spending other people's money to the tune of best part of £1 million, yet has never been prosecuted or even investigated for fraud. One of the companies was purportedly to help disabled people become mobile. Even with County Court judgements, they were allowed to continue because they were simply felt to be inept, when actually it was a very clever series of scams.