Former Torex subsidiary FD guilty of fraud

A FORMER finance director at a subsidiary of Torex has been convicted of fraud relating to accounting irregularities at the group.

Christopher Ford, from Buckinghamshire, was found convicted of defrauding shareholders of Torex at Oxford Crown Court today, to the tune of £1.65m. He was convicted alongside fellow director Edwin Dayan, of Torex subsidiary XN Checkout (XNC).

Other counts against the pair, including false accounting and misleading an auditor, will not be proceeded with.

The Serious Fraud Office (SFO) begun investigations at the former AIM-listed company after whistleblowers approached the office about alleged accounting irregularities.

Dayan was MD at XNC, while Ford was finance director. The pair misrepresented a contract that caused XNC to claim a £756,000 bill that was not due. They also created a document to give the effect that the other party had agreed the contractual arrangement. This information was presented to Torex auditors BDO to justify the £750k additional profits, but in reality this amount was not owed.

The false claim carried over into the next set of figures Torex published.

SFO director Richard Alderman (pictured), said: “I welcome today’s verdicts and the part played by whistleblowers in helping to uncover this crime It’s a victory for honesty and fair dealing in business life.”

The pair will be sentenced on 18 February.


Related reading

tax dictionary