Quintech FD disqualified for 'unfit conduct'
The finance director of Cheshire-based Quintech Computer Services has been disqualified for four years, following an investigation into a £1m scam to inflate profits and disguise losses.
Link: Ex-Queens Moat FD excluded from institute
Quintech manipulated records for four-and-a-half years through premature revenue recognition on long term software development contracts, sometimes even before work had begun. When losses no longer could be disguised, the company went into receivership in 1998.
The secretary of state has accepted the disqualification advised by the companies investigations branch of the Department of Trade and Industry.
FD Andrew Hamilton Budden agreed with CIB findings of ‘unfit conduct’. The CIB said he breached his duties as director because the company produced and filed accounts that showed ‘significantly’ overstated profits and he failed to rectify or make provisions for the entries.
In addition, CIB said Budden ’caused or permitted’ to maintain accounting records which did not give a true or fair view of the company’s financial state. It alleged records had been manipulating for the financial years from 1994 to 1998.