24 Jun 2020
The accounting industry watchdog is being urged to investigate alleged oversights by the auditor of Lendy, the scandal-hit peer-to-peer lender whose collapse has left thousands of investors facing millions of pounds in losses.
Representatives of Lendy investors said that the role of Moore Stephens, part of BDO, the international accountancy firm, should be examined after fresh allegations about alleged financial irregularities emerged.
The Times revealed last week that the assets of Liam Brooke and Tim Gordon, Lendy’s co-founders, had been frozen after administrators alleged that they had channelled £6.8 million from the business to offshore companies for their own benefit.
The money allegedly was funnelled to corporate entities registered in the Marshall Islands and insolvency practitioners said that the payments were “ultimately for the benefit of” Mr Brooke and Mr Gordon.
Moore Stephens is facing questions over whether it failed to spot the transactions; why no warning was given over the poor state of Lendy’s finances in its final set of accounts; and whether it had fundamentally misunderstood the nature of the business.
By James Hurley, The Times, 24 June 2020
Read more at The Times
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