PracticeConsultingRegulation – JDS to probe Atlantic scam

Regulation - JDS to probe Atlantic scam

Three chartered accountants face a disciplinary hearing by the profession’s senior watchdog next month over their involvement in the disastrous collapse of Atlantic Computers, writes Lucinda Kemeny.

Nicholas Scott, John Tompkins and Sien Yin Cheng Kai On, all former directors of Atlantic, face a Joint Disciplinary Scheme tribunal on 3 June. Proceedings had been held back while the department of trade and industry completed its investigations.

The 1989 purchase of Atlantic, an apparently successful leasing company, led to the 1990 collapse of conglomerate British & Commonwealth, with debts of £1.5bn.

A DTI report revealed creative accounting in the financial statements had presented Atlantic as a success story. But it had huge liabilities which it attempted to hide through an aggressive growth policy.

The three have now been disqualified as company directors, enabling the JDS to proceed.

This is the second investigation carried out into Atlantic conducted by the JDS. The first looked at the work of Spicer & Oppenheim, now part of Deloitte & Touche, which audited Atlantic.

A tribunal last year upheld allegations that the firm had failed to question liabilities in the accounts and it was ordered to pay costs of £100,000.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer