Regulator extends WANdisco fraud probe

(Sharecast News) - An investigation into potential fraud at WANdisco has been extended, the embattled big data specialist confirmed on Thursday.

The AIM-listed group said the Financial Conduct Authority had widened the time period of its probe to commence on 1 May 2021, the date on which a senior sales employee at the heart of the investigation started working at the company.

WANdisco said the regulator had taken the decision after receiving FRP Advisory's independent investigation into the alleged fraud.

The UK firm stunned markets in March when it said a "significant, sophisticated and potentially fraudulent irregularities" had been discovered, all of which related to orders and bookings made by one senior employee.

It meant that full-year revenues should have been $9.7m instead of the $24m it posted in January, while bookings should have been $11.4m and not $127m.

Management requested that trading in its shares be suspended, and brought in FRP to carry out an independent investigation.

Only days previously, the firm had been reportedly considering a potential listing in New York.