'Versailles loss-making from the start'
The former finance director of Versailles told a court yesterday that the collapsed company had been a loss-making business from the very start.
Fred Clough, who has pleaded guilty to conspiracy to defraud Versailles’ creditors, claimed the situation prompted the company’s bosses to write fictitious profits into its accounts, resulting in a financial black hole.
Clough, along with the firm’s founder Carl Cushnie and his assistant Lorraine Jones, have been accused by the Serious Fraud Office of artificially inflating the company’s turnover to attract more money from investors.
It is alleged that Cushnie made £37m from the fraud while Clough made £19m, according to The Daily Telegraph.