Extended bankruptcy for FC who diverted employer’s funds

A financial controller has received a 13-year bankruptcy restrictions order (BRO) following a trial for diverting funds from her employer to herself, after an investigation by the Insolvency Service

Chasjit Verma of Romford, Essex, was made bankrupt in March 2016, having presented her own petition. On the day of her petition Verma showed she owed £243,903, with £164,507 going to her former employer.

But in making the BRO, the court accepted evidence presented by the Insolvency Service, which showed that the significant sum owed to her former employer was as result of Verma abusing her position of trust as a financial controller by misappropriating funds.

The county court at Romford heard evidence that Verma was employed as a financial controller by the Jubilee Hall Trust Ltd in July 2003 and her duties were extended to a related company, Jubilee Hall 2000 Ltd.

Verma provided book-keeping services, including paying suppliers and providing information to the management and trustees of Jubilee Hall Trust Ltd’s external accountants.

But between April and November 2015, Verma initiated unauthorised payment transfers totalling £164,507 from her employer’s bank accounts to bank accounts which were not legitimate consultants engaged by the Jubilee Hall Trust or Jubilee Hall 2000, but which were her accounts or accounts controlled by her.

Laura Nicholls, the Official Receiver, said: ‘Mrs Verma held a position of trust with her former employer, which she subsequently breached by carrying out actions of dishonesty.

‘The Insolvency Service looks closely at individuals and takes action where wrongdoing is uncovered. These proceedings should serve to protect the public from future misconduct by restricting Mrs Verma from obtaining credit and acting in the management of a company.

‘The period of restrictions is in the top bracket, the maximum being 15 years, to reflect the seriousness of the case.’

Report by Pat Sweet

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