BusinessCompany NewsVersailles FD told to pay £11m

Versailles FD told to pay £11m

The former finance director of failed trade finance group Versailles has been ordered to pay £11.3m to the company's receiver PricewaterhouseCoopers.

Frederick Clough was ordered to pay the money after his lawyers failed to convince the Court of Appeal that defending the multi-million pound claim against him could prejudice the outcome of a criminal trial connected to the Versailles collapse.

The order was upheld by the Court of Appeal following an earlier High Court judgement that Clough had breached his duties as a Versailles director.PwC had issued a writ against Clough last year alleging a breach of fiduciary duty.

Simon Colledge, Clough’s solicitor, claimed in court that to defend the PwC claim his client would be required to provide information that might assist a prosecution.

The Serious Fraud Office has laid charges of fraudulent trading against Clough and Carl Cushnie, Versailles’ chief executive.

Clough and Cushnie, plus Clough’s former personal assistant Lorraine Jones, are due to appear at Bow Street magistrates court in January.

Colledge told Accountancy Age that Clough was considering his options, including an appeal against the ruling.

Links

Fourth person charged over Versailles

Fraud charges brought over Versailles

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