On 10th December 2020, Luton based accountant ‘’Mr Madhusudan Natverlal Morjaria’’ of Simon Cooper & Co was removed from register by ACCA Disciplinary committee for retaining and using client's refund money from HMRC for his personal use without client’s authority. He was represented by Mr Cope to whom I closely follow in Accounting Web.
I have following questions and need your opinion
- How did he hide refund information from active clients despite their accounts are prepared by him?
- Did he exploited any loophole in the system?
- Should there be a criminal investigation?
One possible explanation could be that It is very common for accountants to be the registered office for clients. Usually when a refund is issued by HMRC, one copy is sent to agent and second copy goes to client’s address. In the case of Ltd company, it goes to the registered office address which happens to be the accountant’s address.
Mr Morjaria exploited that loophole and never informed his clients about their refund infect he let them accumulate and then used that money to fund his other firm.
Do you think may be ACCA and other bodies should inform HMRC about this loophole any refund letter must be sent to client’s business address or PSC’s home address rather than registered address. What do you think? Let discuss