Should read27 Sep 2012 22:49
Found this from 2002. Nick Mathiason
The Observer, Sunday 30 June 2002
Mobile phone distributor PNC Telecom has issued a writ against its former chief executive Darren Ridge alleging 'he may have committed acts of misconduct' that those close to the company say could blow open a multi-million pound fraud investigation.
PNC is demanding the return of hundreds of thousands of pounds from Ridge, a millionaire living in Hampshire, but it is believed this could be the tip of the iceberg.
Investigations by the company, chaired by Lord Stevens of Ludgate, the former owner of Express Newspapers, have led it to accuse Ridge of misappropriating company funds by paying £74,000 to two employees who PNC claims never actually did any work. Ridge is accused of buying his wife's jewellery business using £12,000 of company funds after it closed down and failing to seek the board's authority for a further £168,000 worth of transactions involving other family members and associates.
It is understood that Customs & Excise and the police have been alerted to the possibility of deeper fraud involving VAT avoidance and further practices running into millions of pounds.
Ridge, who resigned from the company this month, denies any fraud or wrongdoing. He is to contest the writ and is counter-suing for breach of contract and wrongful dismissal.
Ridge sold KJC Mobile, the company he formed with partner Joseph Case, to PNC in June 2000 for £15m in cash, plus £15m in new PNC shares. PNC shares have crashed from a high of 410p just before the deal to 9.5p on Friday.
PNC alleges profits were overstated and that obsolescent stock, which should have been written off, was used to inflate earnings.
Last month the company said trading would be 'substantially below market expectations'.
There is no suggestion that Lord Stevens was aware of any of the allegations prior to a new management team headed by Ian Gray, the former Marchpole chairman, coming into the firm.
Barry Mordsley of Salans, the law firm representing Ridge, said: 'Darren Ridge resigned because he wasn't paid his salary. As a result we have issued proceedings for this and for breach of contract against PNC. It's true they've made allegations against him [Ridge] ... These allegations are vehemently denied. Any suggestions of fraud will be denied.'