The former group financial accountant of software supplier Torex Retail is facing a ten-year ban following the outcome of a Financial Reporting Council (FRC) disciplinary hearing which has banned Mark Woodbridge from membership of the profession for 10 years, following his conviction for false accounting
A disciplinary tribunal which met last month found that former ACCA member Woodbridge’s conduct fell significantly short of the standards reasonably to be expected of a member and has brought discredit to him and to the accountancy profession.
In 2013 Woodbridge was convicted by Oxford Crown Court of the criminal offences of false accounting and conspiracy to defraud in respect of the interim financial statement for Torex Retail for the period ended 30 June 2006, following an investigation by the Serious Fraud Office (SFO).
Woodbridge was given a jail sentence of three years and 10 months, disqualified from acting as a company director for three years and ordered to pay costs of £170,000 within 12 months.
The FRC tribunal considered three allegations related to the criminal charges. The first related to the dishonest falsification of the interim financial statement by causing purported revenue of £1,999,750 to be recognised.
The second related to the allegation Woodbridge conspired to defraud shareholders by causing sums of £5m to be entered incorrectly as cash at bank and purported revenue and a sum of £1.5m to be entered as cash at bank. The third related the creation of false or backdated documentation.
Woodbridge appeared at the tribunal unrepresented. In his submissions, he made it clear he did not believe he had committed any criminal offences, which was why he contested the Crown Court trial. He said he was not prepared to make any admissions in respect of the FRC’s allegations, as he did not accept the matter had been properly investigated by the FRC and did not consider he had been guilty of any misconduct.
The FRC tribunal ruled that the misconduct alleged had been proved. It accepted that Woodbridge had made no personal gain and said his actions did not cause the loss of significant sums. However, he held a senior position and had failed to comply with professional standards and act with integrity. Given that prior to this, Woodbridge was a man of good character the tribunal decided a 10 year ban was the most appropriate sanction. As Woodbridge has been declared bankrupt, and reported he had lost almost everything, the tribunal ruled that no order should be made regarding costs.
In July 2014, the FRC said it was closing an investigation into Christopher Moore, the former chairman and chief executive of Torex and also a former ACCA member, which it had begun six months earlier.
The regulator cited ‘insufficient evidence of misconduct during the period in which Moore was a member and therefore subject to the FRC Accountancy Scheme to give a realistic prospect that a tribunal would make an adverse finding against Mr Moore.’
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