JDS accuses Coopers of failing to reveal fraud

PricewaterhouseCoopers, formed by the merger of Coopers & Lybrand and Price Waterhouse in 1998, has said it will contest certain complaints to be brought against it by the JDS.

The Big Five firm made the statement following disclosure today by the JDS that it was to bring the complaints which relate to a rights issue and audit work done for Resort Hotels Plc which collaped in 1994.

As well as Coopers the complaints centre on former partner Alun Thomas, former senior manager Mark Harwood and senior manager Ruth Margaret Way, and the former FD at Resort, Roland Peter Lewis.

A JDS statement said complaints against Thomas, Way and Harwood related to ‘a failure to inform Resort that evidence suggesting fraud on the part of their managing director had emerged in July 1992’.

Lewis, the former Resort FD, faces a complaint that he failed to ensure that those dealing with him ‘knew the limitation of his responsibilities’ and that he made out that he had knowledge of the business of Resort which he did he not in fact possess.

A PwC spokesman said: ‘We will be co-operating with the JDS tribunal but we will be contesting certain complaints.’

Coopers was first hit with trouble over Resort in 1998 when investors issued a series of writs claiming damages in excess of £10m following the rights issue.

Big Six – Coopers faces Resort Hotels writs

JDS – Coopers faces Resort probe

Related reading

aidan-brennan kpmg