Versailles FD accused of dragging feet

Versailles floated on the Alternative Investment Market in 1995 and grew to a market value of £630m by the time its shares were suspended in December after accounting irregularities were discovered. It is alleged that someone at Versailles created a false client list, each with fake profits, to help raise the company’s share price.

Frederick Clough, who is accused of a £50m fraud, is allegedly trying to delay the investigation led by PricewaterhouseCoopers and the Serious Fraud Office, the Sunday Times reported yesterday. It is now thought that the case will not go ahead until early 2001.

It emerged in June that backers who lost millions through the collapse are pursuing a court action in the British Virgin Islands to liquidate a company at the centre of the Versailles scandal.


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