Hughes Allen ex-chief sued over missing funds

Hughes Allen is suing former managing partner Peter Scolding for more than # 240,000, after the firm discovered an apparent hole in its finances.

The 15-partner, Group A firm has also reported Scolding, aged 50, to the English ICA’s professional conduct department.

Scolding, who had worked at Hughes Allen since the age of 18, had been managing partner for the past seven years, until he quit at the end of April.

In a prepared statement, the current managing partner, Howard Lewis, confirmed that the firm was taking legal action against Scolding because of ‘financial irregularities’.

He said: ‘He (Scolding) was responsible for the financial management of the practice and occupied a position of trust which he breached.’

Lewis refused to elaborate on how Scolding had allegedly abused his position, only saying that ‘the irregularities related to internal matters and none of the practice clients have suffered any financial losses’.

However, Accountancy Age has learnt that the embarrassing affair appears to centre around allegations that Scolding had misappropriated more than # 240,000 over several years.

A handful of clients have dropped the firm because of the scandal.

Lewis said: ‘Mr Scolding’s clients were advised of the reason for his sudden departure and, with very few and insignificant exceptions, have agreed to the transfer of their affairs to other partners within the practice.’

Scolding refused to comment on the allegations surrounding his resignation.

He did confirm, however, that the English ICA’s professional conduct department was looking into his case.

Hughes Allen is the 49th largest firm in the UK, with an annual fee income of # 4.4m. This is down by 2.2% on the previous year.

The firm has offices in London, Ipswich and three locations in the South East.