PracticeAccounting FirmsFormer Torex CEO sues KPMG and RBS

Former Torex CEO sues KPMG and RBS

Former chief executive of failed software company Torex Retal is suing RBS, KPMG and Cerberus Capital accusing the firms of fraud

Former Torex CEO sues KPMG and RBS

THE former chief executive of failed software company Torex Retail is suing RBS, KPMG and Cerberus Capital accusing the firms of fraud.

Scottish businessman Neil Mitchell has launched a £128m series of legal cases with the High Court, alleging that the three companies conspired to rig the sale of his company’s asserts for below their value.

Torex collapsed in a fraud scandal in 2007, resulting in the imprisonment of its financial accountant Mark Woodbridge, who was jailed for three years and ten months.

In 2013, Woodbridge was convicted alongside Christopher Moore, a former CEO at Torex, and former chairman Robert Loosemore of conspiring to defraud the former AIM-listed company’s shareholders between May and August 2006, by falsely inflating the cash/bank revenue figures of the company’s interim results by £6.5m.

Mitchell alleges that RBS conspired with KPMG and Cerberus to sell the business below its enterprise value. KPMG and RBS both deny the allegations. Cerberus declined to comment.

KPMG said: “We strongly refute the allegation that KPMG or its members have acted improperly; there is no substance to the claims that have been made. The Courts have previously dismissed similar allegations and we have applied to have the current proceedings struck out.”

RBS said: “We have thoroughly investigated Mr Mitchell’s allegations and believe them to be entirely without merit. Mr Mitchell has chosen to issue legal proceedings which will be met by a full defence.”

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