BusinessCompany NewsSeymour Pierce fined for failing to spot accounting fraud

Seymour Pierce fined for failing to spot accounting fraud

Weak compliance controls lead to “serious failure”, according to FSA

Investment bank Seymour Pierce has been fined £154,000 by the Financial
Services Authority after failing to spot accounting theft by a former employee.

Blame was placed on weak compliance controls that allowed a broker to steal
£150,000 from internal and client accounts without arousing suspicion.

The crimes took place over a three year period and involved 36 separate
transactions.

The matter only came to light after the employee had left and his replacement
picked up on serious accounting discrepancies.

“This is a serious failure on Seymour Pierce’s part,” said Margaret Cole, the
FSA’s director of enforcement and financial crime. “The frauds were not
sophisticated and could have been detected at a much earlier stage if the proper
procedures had been in place.”

Seymour Pierce agreed to settle with the FSA early, meaning it qualified for
a 30% discount. Without this the fine would have been £220,000.

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