Director frozen out: What to do next

 

An AccountingWEB member faced a dilemma when his company accountant refused to deal with financial irregularities he noticed.

Shunt13 posted on Any Answers for advice on appointing an external auditor to the company, in which he had a 50% stake.

His co-director was also unwilling to acknowledge irregularities which included £18,000 in overdrafts run up over the last four years. In Shunt13's view, the company accountant had a close relationship with the other director and was working “in cahoots” with him.

“I got abused, screamed at, it has been really unpleasant,” said the AccountingWEB member, who has been kept at arms-length from the accounts.

Shunt believed...

Continued...

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Comments
George Gretton's picture

Forensic Accountant Available

George Gretton | | Permalink

Hello Shunt13,

In the last 8 months I have identified

a £7,500,000 money laundering scam going down in a hijacked "Drinks Industry" Charity, the Institute of Brewing and Distilling (case now with the Met Police, Westminster CID Detective Nathan Tozer at Westminster CID, "too busy" to look into it): I am in correspondence with my MP and a Minister of State (Jo Swinson) about it

A threesome of Recruitment Agents with £2m income businesses, trading completely insolvent (£420k "Current Debtors" includes £250k Director balances)

A single Recruitment Agent trading as a Company with a totally obvious set of insolvent accounts filed -negative P/L £95k

A single Recruitment Agent making ridiculous and false claims on his website ("Office in Tower 5, The Lloyds Building" for this £80k income business) which led to an internal investigation at Lloyds by its Assistant Ombudsman, who has gone stum on the subject (cannot comment)

I'm available at

George@Grettons.Co.Uk.

Yours, George

 

Accountant

fionamcke | | Permalink

Has anyone asked about the accountant? Is he a member of a recognised Institute, in which case he should be reported to that Institute. If a member of an Institute he should hold some form of professional indemnity insurance, is it possible a claim can be made against that for losses incurred?

George Gretton's picture

Perhaps don't bother with "Professional Institutes" for now....    1 thanks

George Gretton | | Permalink

 

Hello Fiona,

I am a FCA Member of the ICAEW, with 30 years of continuous membership.

Last year they raised a bogus complaint about me in connection with the Charity Scam above, via Chantrey Vellacott. Please see the linked (and thus safe, at least in IS/IT terms) PDF file, whose file name is “Pink Handbags at Dawn”.

https://www.box.com/shared/static/7zxkh9880ligal89ab7x.pdf

So my approach to this, as a scalpel-like forensic accountant, is as follows;

Examine the accounting records, and spot the manure entries, and then

Take bent people to the local CID for fraud, and take them through the courts.

The situation is already and transparently irrecoverable. This is a stem the losses exercise.

In the IBD they have used up the £7,500,000 of “Donations” (since 2001) and have now mortgaged (to the "innocent" bank) the £3,800,000 Mayfair Offices to continue the siphoning. The Met Police may only be able to pass on the case to the Insolvency Service when they finally decide "to go there".

I flagged this to so many other Statutory Agencies, but nobody at all has reacted. It perhaps “not nice” to think ill of frauds and charlatans and worse.

Yours, George, Friday 22nd March 2013, 11:40 GMT

legal route?

evely | | Permalink

The only thing that has not been mentioned is get legal advice - protect oneself by making sure it is documented and recorded what you are doing etc otherwise they may twist it around and you become liable for.... well who knows?

George Gretton's picture

Legal advice?

George Gretton | | Permalink

Hello Evely,

In my pursuit of The IBD, Chantrey Vellacott and the ICAEW I have sought legal advice, if only to make sure that I don't end up on the wrong end of a Writ for Defamation.

I approached a Libel Lawyer that a friend had met, who seemed like a nice chap to my friend, and as it happens who specialises in issuing writs for defamation and pursuing them.

Did I get so much as the courtesy of an acknowledgement to my entirely polite enquiry about advice as to how NOT to get pursued for defamation? Of course not; this chap is interested only in his fees, and has no interest in anything to do with Justice, or of sorting out people who remind me of a certain German Philosopher that I once studied whose first name was Immanuel.

I also approached a Charity that specialises in supporting Employee Whistleblowers in this sort of respect. But they were also pretty pathetic in the end, and freaked out at the thought of my taking the piss by going to visit the IBD Head Office in Mayfair with a friend who also has a sense of humour on a par with mine.

Very, very few people even want to know. The prefer to be Chinese Monkeys, hearing and seeing no EVIL, so that they can't POSSIBLY speak evil of anybody, because that's "not nice" at all!

You may question my sense and sanity in being so free with my observations, and it's a moot point. However if somebody as above wants to get me served with a Writ for Defamation, then my enthusiastic response will be to ask how soon the Court Hearing will be, so that the ton of evidence that I have can be dissected in open Court. 

The other concern of course is for my physical safety and well-being. There are some very, very, nasty and psychopathic dudes involved here, starting with Kenneth Joseph Fairbrother of Derbyshire, Arch-Engineer.

In this respect I do have a problem in that I'm insufficiently bothered about my well-being, but I also make a hell of a lot of noise so that the villains will know that they will be investigated if they try to tamper with me, possibly terminally.

So, as above, I conclude that one has to avoid bottling out with concerns as to whether right and truth will prevail and just get on with it.

I can take a good amount of flack, which I return with German Knobs on as above; I recently surprised a "tradesman" toss-pot non-customer-servant with the richness of my language towards him. He was too stupid to work out that I was incandescent with rage for very good reason; his employer, B & R Carpets and I subsequently agreed that we would do no further business together; their loss; I will soon need a new carpet.

So if  Shunt13 wants to get a Solicitor and I to get involved, so that I get stuck in there and crawl around in the manure whose liklihood of existence is 99.99%, then I'm up for some vicarious fun.

Yours, George, a Very Good Friend to Have, and a Poisonous and Toxic Adversary or Enemy

George Gretton's picture

Post Script

George Gretton | | Permalink

Just for the record, I would start with bank statements, first making sure that I had a full set. I would not place any de-facto reliance on any accounting records at all.

Directors' duties

JohnBanfield | | Permalink

Take a look at the Directors' duties contained within the CA 2006, Chapter 2, sections 170-187, to see what applies to the Director in terms of remedies available.

John

 

 

George Gretton's picture

Nice one, John Banfield

George Gretton | | Permalink

Hello John,

It's wonderful to see it all written out in pretty wonderfully plain English.

The expression "Coach And Horses" springs to mind, except that there's not much of an obvious loophole; the narratives are pretty clear.

If you act fraudulently in your role as a Company Director, then you are NOT ONLY acting fraudulently per se as a member of the community, but you are ALSO in Blatant Breach of "Company Law", where I'm sorry to have to do the inverted commas, but people just take the piss so much.

And there's so much of it about! "Reputable" appearing companies behaving like canine faeces, and being supported in this case by a "Professional" ICAEW Firm! 

Here's a set of accounts that "looks" fine, and has been endorsed, albeit not audited, by an ICAEW Firm that actually prepared the "accounts" (the directors long since chose to skip audit) even if they didn't audit them.

It "can" start looking sweet as a nut, unless you have been watching the history of wacky double entries over the years. However one inevitably wonders about "Current Assets" of £568,647 in a £1.8m turnover Company. One applies Anal-Ytical Review.

Lo and behold, "Current Assets" includes debit balances of £245,855 relating to, wait for it, Directors! The Directors, in overall terms, OWE the Company £100,000, AFTER taking "Shareholders Funds" into account. We have an accounting problem, Houston; It's called a Fraud in normal language.

There were some spectacular entries in earlier years more or less akin to Debit Director's Loan Accountants, Credit Share Capital; beautiful Double Entry, in the amount of £250,000: but these were and are illegal. 

https://www.box.com/s/g862ugz9t811gzqak44w

Somebody, today, is having a real good cruise around my Box files in respect of the IBD.

My inbox keeps pinging with download reports; one folder re a big, big International Brewer will be perhaps found interesting.

Keep up the good work, whoever you are! Enjoy! If you are a Journalist please get in touch; that will save me finishing my long letter to Jo Swinson, Minister of State for Employment Relations and Consumer Affairs, including responsibility for Companies House "See no Evil" and BIS Departments ditto.

Yours, in anticipation, hopefully of some support, George

 

George Gretton's picture

Another addendum

George Gretton | | Permalink

Hello again all,

If anybody downloaded the analysis above of sets of Holden Jones Ltd Accounts, then please know that I did notify HMRC of their exposure as the Company's greatest Creditor when the Company ultimately collapses, along with the jointly owed other Company, owned by Holden and Jones and Perrott.

They (HMRC) don't seem to have been moved to took into my offered information; perhaps they also don't think that its "nice" to grass on morons, while I regard it as a sporting and essential activity. I really take exception to finding that I have been having what I thought were civilised interactions, which turn out to have been with frauds.

My evidence that they (HMRC) have not acted to stem their future losses is that the two companies still seem to be trading, going from the fact that their LinkedIn Groups still seem to be functioning, although I did just pull out of them, having at last found a way to secure all the input that I and others made to their two groups.

Yours, having a Bad Hair Day, George

George Gretton's picture

Feedback, Please!

George Gretton | | Permalink

My Inbox has been pinging away with reports from Box telling me that people have been having a butchers at my Anal-Ytical Workbook.

Please, give me feedback.

Does anybody else take as dim a view of Company Directors very actively falsifying their Company Accounts? I CANNOT see that these are NOT people engaged in common or garden "Fraud". All good White-Collar Stuff, all Professional. None of this sordid street crime.

Does any body think that such activities are in any way OK, either within general convention and Law, or within Company Law?

Yours, George

George Gretton's picture

Oh for Codd's Sake......

George Gretton | | Permalink

There continues to be a host of downloads from my Box facility, both of the Holden Jones stuff, and also of the IBD stuff, whose links I provided some time ago. 

Antiques Roadshow: IBD Accounts (good) 2010, (better) 2001, and (best) 2011.

What does anybody make of Kenneth Joseph Fairbrother's statement on page 11 of the 2011 accounts? Even my dearest and very senior and most restrained fellow FCA made some remarkable observations about that, including "how could the auditors possibly have signed those accounts?"

Don't be shy: share your shock horror or mirth!

Please, please, please if anybody disagrees with my "interpretations" of all of these sets of fable and falsehood, please say so, so that we all can discuss our disagreements!

Yours, George, George@Grettons.Co.Uk

 

George Gretton's picture

If there's an Honest and Decent Investigative Journalist..

George Gretton | | Permalink

If there's an Honest and Decent Investigative Journalist out there....then the IBD is a whopper if you want it.

The Daily telegraph, BBC London, and AccountingWeb / Sift Media have all declined to dirty their hands and minds with it; this could be YOUR Big Hit.

It involves The IBD, Chantrey Vellacott, the ICAEW, and people looking the other way in all sorts of colossal Drinks Industry Corporations, where various Drs and "Professors" of Brewing now work.

Something may even have been laundered through the Medical Research Council; about £600,000.

You should see how "IBD" "Funding" has followed individuals, and how the Herriot-Watt University has an ongoing "Professor of Brewing" that definitely does not work there if you write to him - "Return to Sender - Gone Away" and "Take off your database". 

Gone away? I wish he had. He will soon wish that he had, when he is finally interviewed.

Yours, having another Bad Day, and so letting off steam, George