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Institute bans loan-seeking accountant

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11th Feb 2016
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The ICAEW has excluded an accountant after he sought loans for a limited company where he was also the director, but failed to disclose this conflict of interest.

As featured in the latest disciplinary orders Stephen Homyard, who also ran an accountancy practice in Jersey, obtained loans from clients of the business. One example saw a client loan £40,000 to Homyard’s limited business on 4 February 2011, and then a further £34,000 to Homyard personally to fund a new accountancy practice in Dorset. Neither of these loans have been repaid.

Another complaint held against Homyard alleged that during this period when he was director of the limited company he failed to disclose the conflicts of interest arising in relation to the loans, which violated the Jersey financial services code of practice. Homyard then incorrectly informed the limited companies board of directors that he had repaid another loan.

Homyard had written a letter to the Institute in 2014 admitting that loans had been made. However, the ICAEW, in its conclusion, said Homyard “should have addressed the threat to his objectivity that arose as a result of the loans, and applied safeguards against the threat”.

Homyard had also received a disciplinary record for not having professional indemnity insurance.

In 2013, the Jersey financial services issued a public statement following an investigation into the fitness and propriety of Homyard. The public statement prohibited him from performing any service which fell under financial service.

Homyard had not repaid his clients and debtors, and the ICAEW also noted that he has yet to show any signs of remorse. The tribunal imposed a fine of £10,000, and ordered to pay costs of £9,561.

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Also appearing in the February disciplinaries, the ICAEW excluded an accountant who stole more than £15,000 from 10 clients after he pocketed their tax refunds.

Between 2011 and 2012, Gary Hawkins amended several of his clients tax returns after they had approved them. The clients attempted to contact Hawkins once HMRC had confirmed money was paid into Hawkins’ bank account. On one occasion Hawkins misled his clients by claiming HMRC was at fault, and the other times he did not return any of his clients' calls.

The last two instances of theft occurred after Hawkins’ ICAEW membership lapsed in 2012.

Hawkins was convicted in 2012 and 2013 in the Crown Court. He was sentenced to 12 months imprisonment, and on his second conviction the judge took into consideration Hawkins’ guilty plea, his good behaviour and mental health issues and dealt Hawkins a custodial sentence.

* * *

In two separate cases, two young accountants were chastised for their "unprofessional" behaviour.

Deeban Cavendra faced disciplinary action after sending inappropriate and juvenile emails to his colleagues while at work,  writing that the firm should "all die," in a twin towers-style attack, and also emailed vulgar messages to a colleague. He admitted to deleting the email chain in an attempt to obstruct his employers’ investigation into his behaviour. The defendant attempted to blame a junior colleague for his misconduct. 

The other case involved Namit Kad who, as a trainee accountant, altered the scores in his internal review to enhance his assessment. Kad called the appraisers four days after making the alteration to admit amending the forms. 

In both cases the defendants’ ages and stage of their careers were considered as well as showing remorse. 

Both of the defendants escaped a sentence – but in both occasions they lost their jobs as a result.

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