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CFO excluded after £200,000 invoice fraud

15th Apr 2016
Editor AccountingWEB
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A CFO has been excluded from the ICAEW and faces imprisonment after raising 11 false invoices to make a personal gain of £224,754.

As reported in ICAEW’s monthly disciplinary report, Ian Ryder Marchant Ousey pleaded guilty to fraud by abuse of position in 2014, blaming financial difficulties that arose after he purchased a holiday home in Portugal.

Later that year Ousey was sentenced to 40 months imprisonment, which was reduced on appeal to 32 months in May 2015.

Between October 2008 and November 2013, while serving as CFO for an unnamed company, Ousey submitted 11 invoices to a non-existent consultancy firm to the tune of 284,391 Euros.

Ousey was the most senior officer with responsibility for the management of the group’s financial affairs. Prior to the discovery of the fraud he had entered into a compromise agreement following redundancy on 18 January 2013, agreeing to cease his duties on 27 March 2013 and was then placed on gardening leave for 12 months.

His former company unravelled the extent of his fraud when false invoices, unauthorised credit card expenses and unauthorised employee benefits totalling £715,045 were discovered.

Ousey’s contract was terminated in May 2013 once he admitted to using a French credit card without the consent of his company over a 17-year timeline. Further evidence emerged after two LLPs discovered Ousey had submitted 11 invoices between October 2008 and November 2012 to a non-existent consultancy firm.

He had used the false invoices to maintain a property in Portugal, which became apparent when evidence of the false invoices was discovered on his computer’s hard drive.

After being caught, Ousey stated that his dishonest behaviour had started out with small deceptions but soon escalated after he became accustomed “to the extra income and benefits”.

His descent into fraud began after he used a £400,000 bonus to purchase a holiday home, which resulted in him falsifying invoices to sustain the costs.

Ousey commented that he greatly regretted his actions, and admitted that they fell below what was expected of him. He claimed that he intended on repaying the money, but this slipped after his contract was terminated

The ICAEW tribunal considered Ousey’s actions to be of the most serious end of misconduct. In its conclusion, the tribunal said: “The public are entitled to have complete confidence in the integrity and honesty of those within the profession – his conduct greatly undermines that confidence.”

The tribunal determined that “nothing short of exclusion from membership” was warranted.

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Replies (5)

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By Jimmy Proby
17th Apr 2016 18:49

Don't send him to prison

make him work 7 days a week, 18 hours per week for no wages in a capacity to provide help for poor people and those suffering illnesses and life threatening disablements/illnesses.

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Man of Kent
By Kent accountant
18th Apr 2016 13:24

Naughty naughty cheeky

Mention no names, nudge nudge, wink, wink.

Did you get a slap on the wrists from the forum gestapo?

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By MattG
18th Apr 2016 13:32

From not to..

I think it should read that he submitted false invoices from a non-existent consultancy firm and not to it. He submitted them to his employer.

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By cheekychappy
18th Apr 2016 14:15

It was removed by the moderators. I'm still not sure why as they can't be arsed replying.

 

This name of the employer is in the national press so I fail to see why it is sensitive.

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By AnnAccountant
18th Apr 2016 21:42

Company has lawyered up?

Not sure why mentioning them could be actionable but maybe they have claimed it is.

In my experience, most things lawyers say is rubbish, so why do people feel the need to obey them?  probably the charge out rates they charge for the time it takes for you to tell them they are talking out their hat!

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