Feeds

Torex Retail fraud investigation stool pigeon sings

Suspended chief exec reported own firm

Top three mobile application threats

The identity of the whistleblower in the Serious Fraud Office's (SFO) investigation of software firm Torex Retail was revealed on Friday as its suspended chief executive.

Neil Mitchell told the Financial Times he had led a group of executives which had reported the firm to authorities. He said he would be seeking protection from Torex Retail under the 1998 Public Disclosure Act, which offers safeguards to whistleblowers. Mitchell was suspended on Wednesday.

The SFO raided three properties belonging to a trio of so-called "old guard" Torex executives, including ex-non-executive chairman Chris Moore, who stepped down when allegations came to light on Wednesday.

The Financial Times also reports that Neil Mitchell had alerted Torex's bankers to the accounting hole on 24 January. He told them the firm would be in breach of "at least one of the financial covenants" it had entered into as the debtor to a £190m loan syndicate.

The bankers responded by recommending an independent accounts review and said they "took comfort from the current chief executive and senior management team". The banks indicated they would not welcome Chris Moore regaining the reins, adding: "In particular...we do not want to see a reversion to the management structure that was in place before their [the current executive team's] respective appointments."

Concerns were raised about Torex's finances after it issued a shock profits warning on 26 January, despite having previously given no hint of problems to investors. Trading in the company's stock on the London Stock Exchange is suspended.

Torex Retail was spun out of the merger of healthcare software firms iSoft and the original Torex in 2004, and has borrowed and acquired smaller outfits aggressively. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
US Supreme Court supremo rakes Aereo lawman in oral arguments
Antenna-array content streamers: 'Ruling against us could dissipate the cloud'
German space centre endures cyber attack
Chinese code retrieved but NSA hack not ruled out
prev story

Whitepapers

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.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
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.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.