Allegations of fraud rock ilion

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. ®