Independent Insurance FD found guilty

Dennis Lomas, former FD of Independent Insurance is about to be sentenced
after being found guilty in one of the UK ‘s biggest accounting scandals.

Yesterday, Lomas was found guilty of defrauding directors, employees,
re-insurers, shareholders, policy holders and others who had a legitimate
interest in knowing the financial condition of Independent Insurance.

Lomas and his fellow directors, former chief exec Michael Bright and deputy
MD Philip Condon were remanded in custody after Judge Rivlin QC pronounced them
guilty at Southwark Crown Court.

The effect of their actions led to the annual accounts for the year 2000
showing a £22m profit, instead of showing a loss of at least £180m.

In June 2001 Independent Insurance went into provisional liquidation.
Hundreds of
jobs were lost, thousands of shareholders lost investments and more than £366m
has since been paid out under the statutory compensation scheme, according to
Fraud Office

Further reading:

Indie boss lashes out at Big
Four auditor

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