Member Article

Firm’s forensic team uncover £1m worth of fraud resulting in lengthy jail sentence

Earlier this year Liverpool based financial advisors Wilson Henry’s forensic team, led by Director Hilene Henry, acted as an expert witness in a Lancashire fraud trial, involving three individuals colluding to defraud their employer.

The trio, who had worked at LS Systems, a horticultural firm in Tarleton, Lancashire were arrested by officers after suspicious activity was reported in company accounts in 2014.

Wilson Henry were initially engaged to review the firms accounts system, and quickly discovered a number of transactions that had been made in previous years, with large sums of money withdrawn.

These transactions included £27,000 worth of diversion products, to allow branded footwear to be sold below RRP cost online and illegal money transfers worth up to £600,000 using dummy employee records.

Other findings also included £600,000 worth of exorted funds using fictitious purchase invoicing to buy three properties and £100,000 worth of diversion of online bank account balances.

Hilene Henry, Director of Wilson Henry, who led the firm’s team and gave expert evidence at the trial, said:

“Most businesses think fraud is something which happens to others and not to themselves. This case was a massive call to action for all businesses to ensure that their systems are set up to protect them.

“It is easy for someone (or several people) to con business owners into thinking that they are acting in their best interests rather than stealing from them. this is the tip of the iceberg. As we speak a fraud is being committed in a small business in the North West every second of the day.

“The need to properly vet who you are employing and how you are controlling what they do, has never been more palpable.”

All three offenders have now been arrested and charged with conspiring to steal and removing criminal property.

The main culprit has since been jailed for seven years and three months, following a trial at Preston Crown Court, with the other two offenders receiving suspended sentences.

Proceeds of Crime Act (POCA) proceedings has now begun to help recover some of the money stolen.

This was posted in Bdaily's Members' News section by Paul Richards .