Torex chief attacks his board

The Serious Fraud Office has received a dossier from the suspended chief executive of Torex, Neil Mitchell, levelling five serious allegations against the Torex board and chairman Chris Moore.

Mitchell was was suspended from the the retail software supplier last week. His dossier is believed to have sparked an SFO raid of Moore's home and the homes of two other individuals, the Sunday Times reports.

Mitchell, who has turned whistleblower in the corporate scandal, alleges that £2m in fraudulent transactions took place when Torex bought TQIPS. Mitchell alleges further that £2m of false invoicing was undertaken in the purchase of Moss House Group.The third allegation relates to false invoicing and and corporate governance issues related to the acquisition of Retail-J.

Mitchell's report also alleges that Torex recognised an inappropriate £4m exceptional provision in 2005, which was taken into the 2006 interim profits. He has also claimed that Moore traded share in the company when he had full knowledge to purchase the company.

Moore said none of the allegations had been put to him, and that he was happy to cooperate with in inquiries. His supporters are convinced of his innocence, and believe that two indpendent audits by KPMG and Deloitte will prove this.

Further reading:

Torex chief exec: 'I blew whistle'

Torex ousts chief exec and chairman, as firms called in

Torex books may come under KPMG spotlight