Robert John Orme was sentenced to 21 months imprisonment at Birmingham Crown Court today for theft and false accounting. The case revolves around his former role with Knights Chartered Accountants of Birmingham as an insolvency practitioner.
THE DEFENDANT
Robert Orme (52), who qualified as a chartered accountant in 1974, was a partner with Knights Chartered Accountants ("Knights"), a small practice based in Birmingham. He had previously worked for KPMG, for 25 years, where he was, after obtaining his insolvency practitioner's licence in 1986, involved in receiverships and liquidations. He was made redundant by KPMG in March 1992. The following month he joined Knights, initially as an employee but became a partner twelve-months later in April 1993.
THE FRAUD
On becoming a partner of Knights, Orme became aware that the firm was bankrupt. He attempted to cover up the real situation by using funds obtained by the realisation of assets of insolvent companies and individuals. This happened when cheques, which were sometimes made out to the practice but intended for the accounts of the insolvent parties, were not redirected. Instead, Orme made sure that when Knights was short of funds he was able, through this misappropriation, to prop up the firm. This malpractice involved Orme in making false entries in the client accounts and in making false returns to Companies House. Around £300,000 was misappropriated in this way and was placed in overseas accounts.
Knights ceased business in November 1996 following legal action brought by a former employee in respect of two months' salary cheques returned unpaid.
INVESTIGATION and PROCEEDINGS
Complaints about Knights were made to the Insolvency Practitioners' Association which activated an examination of the business. Orme was investigated and prosecuted by the SFO as it was discovered that he was linked to another investigation opened in 1997 during which a number of bank accounts were examined. It was discovered that Orme, fronting for Knights, had channelled funds into these accounts. A closer investigation, which also involved the West Midlands Police, led to Orme's arrest in February 1999.
Proceedings against Orme were instituted in October 1999. He pleaded guilty on 11 May 2000 to nine counts of false accounting and one count of theft. He was sentenced today to 21 months imprisonment on all counts to run concurrently. Four other counts of theft were not proceeded with.
It is not alleged that Orme took money for direct personal gain. The charges represent theft and false accounting in an attempt to keep the firm going.
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