BusinessBusiness RecoveryJailed FD to pay £141,000 in compensation

Jailed FD to pay £141,000 in compensation

Former FD of software group AIT ordered to pay compensation after successful FSA prosecution

The former finance director of listed software group AIT – who was jailed
last month for misleading shareholders – has been ordered to pay £141,686 in
compensation.

Gareth Bailey, 36, is serving two years for his part in a ruse whereby he and
the company’s former chairman, Carl Rigby, booked bogus deals as genuine sales
so that they could falsely claim to have met sales and profit targets.

The two men’s scheme helped disguise difficulties at AIT, but when it
collapsed in June 2002, £90m was wiped from the value of the £100m company.

Bailey has been told to pay the compensation out of his own pocket, and if he
fails to do so, faces a further nine months in jail.

His co-conspirator, Rigby, is serving a three-and-a-half year jail term, and
has been ordered to pay a total of £840,069 compensation to duped shareholders,
the Treasury and the Financial Services Authority.

The case is the first successful criminal prosecution for market abuse by the
FSA, which spent some £1.96m on investigation and litigation costs.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5m Emma Smith, Managing Editor