An accountants’ Joint Disciplinary Tribunal found that the description of his role was ‘false’ and ‘was bound to and did give the impression to shareholders that Mr Lewis had an active, executive role in the direction of the financial and accounting affairs of Resort, which in reality he did not have.’
The tribunal made an order severely reprimanded him, and, as agreed with JDS executive counsel Chris Dickson, he was also ordered to pay Pounds 15,000 in costs.
The hotel chain was placed in receivership after serious frauds were discovered relating to a 1992 rights issue. They were perpetrated by Robert Feld, its managing director, who was sentenced to six years in jail.
Lewis, its finance director, became acting managing director after the discovery of the frauds.
But the tribunal findings made clear that at no time was it alleged that Lewis was responsible for failing to prevent or detect the frauds earlier.
The tribunal said that once information leading to the detection of the frauds became known, Lewis acted in an ‘exemplary way to ensure that unsecured creditors were paid.’
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Accountants’ Joint Disciplinary Scheme website