PracticeAccounting FirmsQMH director to face tribunal

QMH director to face tribunal

The profession's senior watchdog has laid complaints against the former director of collapsed hotel group Queens Moat Houses claiming that he provided false information about the group's financial position.

Accountant Martin Alan Marcus will face a Joint Disciplinary Scheme tribunal for, among other things, ‘his failure to prepare accounts for the year 1991 which gave a true and fair view’ and for ‘his involvement in providing inaccurate and misleading information to analysts’.

A JDS tribunal will be appointed to hear the complaints and its report will be made public.

Former chairman of Chelsea Building Society Maurice Hart was thrown out of the ICAEW in March 2001. He was also ordered to pay £50,000 in costs for his role in the accounting scandal at Queens Moat.

In 1991 auditors Bird Luckin signed off QMH’s accounts with a reported pre-tax profit of £94.1m as ‘a true and fair view… of the profit of the group’.

A JDS tribunal found that in fact the profit was the result of ‘inappropriate accounting policies or the misapplication of the accounting policies stated in QMH’s accounts’.

Other devices used to inflate profits included capitalising interest on the acquisition of hotel assets and managing the group’s hotels through separate companies and paying QMH an annual fee.

Investigators found 67% of the company’s profits for 1990 ‘could not be justified on a true and fair basis’.

In March 1993, QMH’s listing was suspended at the company’s request. Its market capitalisation at that date was £728m. Under new management, the accounts for that year reported a loss of £1,040.5m.

Related Articles

BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

3d Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

5d Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

7d Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor
RSM announces two partner promotions

Accounting Firms RSM announces two partner promotions

2w Emma Smith, Managing Editor
Backsourcing: The latest accountancy trend?

Accounting Firms Backsourcing: The latest accountancy trend?

1m Pillsbury Winthrop Shaw Pittman