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ICAEW excludes 'Shawshank' accountant

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6th Nov 2015
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The ICAEW has excluded an accountant who was jailed for dishonestly claiming nearly £60,000 worth of fees and expenses. But what seemed like a cut and dried case wasn’t quite that simple.

Over a two-year period, Paul Retout claimed £59,806.25 in fees and expenses to which he was not entitled from a firm where he was a partner. On discovering the false claims in 2009, the firm reported the matter to the police who arrested and charged him with four counts of theft and one of fraud.

Retout pleaded guilty to fraud and was sentenced to 16 months in HMP Wandsworth. During his time there, in a move reminiscent of Shawshank Redemption lead character Andy Dufresne, Retout established seminars to help prisoners manage their tax affairs. He has continued his charitable activities since his release. He is also involved in the individual stakeholder forum at the invitation of HMRC.

In his testimony, Retout said that he pleaded guilty to avoid pricey legal proceedings and in the misplaced hope of avoiding a custodial sentence. In its response, the ICAEW tribunal said Retout had, nonetheless, committed an act likely to bring discredit upon himself, the profession of accountancy and/or ICAEW and it levied an exclusion order. The tribunal did note, however, that it “was very impressed with the steps he had taken to put his life back on track and to make a positive contribution to civil society”.

In its sentencing, the tribunal did admit it “equivocate[d] on this issue” and whether Retout’s “very valuable work with offenders meant that he should remain in membership and be encouraged in the work and his rehabilitation”.

The tribunal took an unusual step, deciding that he should not be fined and should not pay any costs. The tribunal also said if the good work continued and Retout’s conduct proved exemplary, the institute “may look favourably on an application for readmission significantly earlier” than the usual 10 year exclusionary period. 

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