Royal Liver finance head forged boss's signature
Friday 09 March 2012
The former finance director of Royal Liver, the mutual life assurer, has been fined £109,000 and barred from working in financial services ever again by the City regulator.
George McGregor forged his chief executive's signature on contracts he wrote to pay a former colleague £3.6m. He was sacked by Royal Liver last year, and the Financial Services Authority yesterday said he would have been fined £1m but for his poor financial circumstances.
The regulator said McGregor had forged chief executive Bill Connolly's signature twice , resulting in the firm paying at least £3.6m to two companies owned by a former employee. In fact, the contracts meant that Royal Liver, which was taken over by rival mutual Royal London last year, had a potential liability of up to £18m.
Tracey McDermott, acting director of enforcement and financial crime, at the FSA said: "McGregor abused his position of responsibility and engaged in a dishonest, deliberate and sustained course of misconduct. He failed to act with integrity and is not a fit and proper person to work in the financial services industry."
Royal Liver discovered the unauthorised payments during a routine audit in December 2009 and suspended McGregor before sacking him in April 2010. It informed the FSA and said it was looking at ways of recovering the money.
The FSA found that as finance director he had been responsible for negotiating the bonus pay-off for a former employee.
But he thought the amount he had agreed with the employee wouldnot have been approved by other members of Royal Liver's board,so decided to conceal the bonus by entering into contracts with two companies controlled by the former employee.
When the former employee's companies sent in their first invoices (each for £1.8m), they were far above the level he was authorised to sign of £500,000 so he forged chief executive Connolly's signature.
- 1 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Food banks: One million Britons will soon be using them, according to Trussell Trust
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...