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26 Aug 2009
A KPMG director fraudulently claimed more than half a million pounds in expenses to fund his wife's extravagant lifestyle, a court heard yesterday.
Andrew Wetherall, who admitted making the false expense claims at Southwark Crown Court, had previously told police he had stolen the money because 'he did not want her lifestyle to suffer', fearing she would divorce him.
Wetherall, 49 years old, pleaded guilty to false accounting and fraud and is expected to face a prison sentence, according to reports.
His fraudulent claims were kept below £5,000, which meant the claims did not require further authorisation.
KPMG said in a statement that it had changed its internal procedures to prevent such a fraud being committed again.
'Mr Wetherall’s frauds were detected via our own internal checks and he was dismissed in 2008. A thorough internal investigation was carried out and the case was then handed over to the police. Since this case, KPMG has made changes to its internal expenses procedures to prevent fraud of the type committed by Mr Wetherall being perpetrated today. No client funds were involved,' said the firm.
Wetherall's last role at the firm was as a coordinator between the member firms globally.
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Visitor comments Add your comment
£500,000 fraud
I suggest KPMG reviews its expenses authorisation limits; MP's expenses appear squeaky clean by comparison with KPMG's.
Posted by: John Struthers, 26 Aug 2009 | 00:00
KPMG director admits £500,000 fraud
At least he will have a well earned holiday in due course at Ford Open Prison.
He might even leave with several new clients upon his release from "The Academy"
Posted by: Gerry Ronson, 26 Aug 2009 | 00:00
He will come back from prison without a wife
What? Stealing to keep a woman? he is dead crazy, a guy at his level shd. know better unless he is using that as an excuse. No woman is worth that.
Posted by: Bomber, 26 Aug 2009 | 00:00
Auditing?
Are these people are going to audit other people?
Posted by: Farsha, 27 Aug 2009 | 00:00
KPMG fraud
Why on earth did he make these claims in Southwark crown court? Why diod he not make them at home where no-one could see?
Posted by: R Bradshaw, 27 Aug 2009 | 00:00
model??
And he is supposed to be the inspirational figure for trainee accountants like me! I guess the pressure of keeping his marriage from filing a chapter 11 protection led him to source finance through complex financial modelling(i.e. fraud)!
Do you think that our life partners should also be trained in ethics so that they don't put us under undue presssure just for the sake of a better lifestyle??!! Is the reward worth the "risk"?
Posted by: abdullah, 05 Sep 2009 | 00:00
Client funds not involved
How can KPMG claim that no client funds were involved! All their funds come from clients and without this fraud they would have had to collect £500,000 less from their clients.
That said alas frauds are prevalent and we all have to be very vigilent.
Posted by: John Jasper, 10 Sep 2009 | 00:00
Unethical
I think that Mr Andrew was not ethical and on top of that he was not being a good ethical study for new entrants to this accounting profession. First and foremost the "tone at the top" should be right for the others to follow, but we see that the researchers are having problems within themselves. We are getting back to the basics where the teachers are set to educate us to make sound decisions however we see that we are being set examples which is depleting the level of assurance that the public investors have on our profession.
Posted by: Nalin, 12 Sep 2009 | 00:00
Interesting
So KPMG's internal controls caught him.....eventually.......after over 100 (minimum) fraudulent transactions. Hardly very reassuring!
Posted by: Howard, 30 Sep 2009 | 00:00