Feeds

Allegations of fraud rock ilion

Distributor gets lawyered-up to deal with 'irregularity'

  • alert
  • submit to reddit

High performance access to file storage

ilion is to instigate legal proceedings against an employee following the announcement of financial irregularities totalling some £500,000. The group issued a statement at 8am saying the board had discovered "an irregular transaction in the UK business which potentially could result in the Group incurring a loss of the order of £500,000". One hour later the networking distributor issued another statement: "The loss relates directly to the individual transaction and not the Group’s trading performance for the year." ilion said the company had "suffered a setback", and that a full investigation of the circumstances was being conducted as a matter of urgency. "Lawyers have been instructed with a view to commencing legal proceedings," it added. ilion had forecast around £5 million profit for this year. Today's announcement would knock this down by ten per cent. Industry analyst Richard Holway offered this comment: "Why is it that networking companies like Azlan and ilion seem to encourage this kind of activity? "At Azlan, this kind of problem was of course caused by lax management control." An ilion representative told The Register no comment could be made because of the process of litigation. Further announcements will be made as the situation develops. ilion lost its chairman and CEO Wayne Channon last December after a string of profit warnings. Channon resigned, saying it was time to go, in the infamous "throwing himself on his sword" incident. In April the group admitted to being in preliminary talks over a buyout. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.