Feeds

Torex Retail fraud investigation stool pigeon sings

Suspended chief exec reported own firm

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
Arrr: Freetard-bothering Digital Economy Act tied up, thrown in the hold
Ministry of Fun confirms: Yes, we're busy doing nothing
'Blow it up': Plods pop round for chat with Commonwealth Games tweeter
You'd better not be talking about the council's housing plans
Help yourself to anyone's photos FOR FREE, suggests UK.gov
Copyright law reforms will keep m'learned friends busy
ONE EMAIL costs mining company $300 MEEELION
Environmental activist walks free after hoax sent share price over a cliff
Apple smacked with privacy sueball over Location Services
Class action launched on behalf of 100 million iPhone owners
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.