Ex-BDO Jersey director in £2.6m fraud

A former managing director with BDO in Jersey has been jailed for defrauding clients of £2.6m, with the court told he used the money to fund an ‘extravagant lifestyle’ which included buying a Formula 1 racing car and paying off debts relating to companies in which he had invested

Richard Arthur, of St Martin in Jersey, pleaded guilty at Jersey’s Royal court to 10 counts of fraud and fraudulent activity which took place between 2002 and 2009.

The court heard Arthur convinced a number of older clients of the firm to transfer money by falsely representing how it would be used and, in some cases, moving it into bank accounts which he controlled.

In total, Arthur admitted obtaining and using £2,637,401, of which only £709,000 was repaid. As well as paying off debts owed over failed investments, he spent £750,000 on the FI racing car.

Arthur, who is ICAEW-qualified but whose membership had lapsed, was sentenced to seven years in prison and disqualified from holding a management position for 12 years. The judge described his offences as a ‘really serious case of fraud by a defendant in the most senior position.’

 In a statement, BDO in Jersey said: ‘Arthur was, until early 2009, a director of a predecessor BDO firm operating in Jersey. He has never been connected with the current firm of BDO in Jersey.

‘The predecessor firm was itself one of the victims of certain offences that Arthur was charged with and had an active and positive engagement with the authorities in their investigation and prosecution of Arthur.’

Report by Pat Sweet

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