A former sales director of Alfred McAlpine Slate Ltd ("Welsh Slate"), a subsidiary of Alfred McAlpine plc, pleaded guilty today at Caernarfon Crown Court to fraudulent trading. Two other directors have already pleaded guilty to the same offence.
Paul Harvey has pleaded guilty to the charge of, between 1 January 2004 and 26 February 2007, knowingly being a party to the carrying on of the business of Welsh Slate for a fraudulent purpose in that he misrepresented to Alfred McAlpine plc the amount of sales achieved by Welsh Slate, contrary to s.458 of the Companies Act 1985.
Background
Alfred McAlpine plc reported to the stock market on 26 February 2007 that its internal audit team had uncovered a systematic misrepresentation of production volumes and sales for a number of years by senior managers at Welsh Slate which would lead to a restatement of the 2005 net assets and a reduction in the expected pre-tax profits for 2006.
A joint investigation commenced in September 2007 following a referral to the SFO by North Wales Police. In November 2008 three persons were charged:
- Christopher John Law (born 05/12/55), former managing director of Welsh Slate
- Geraint Roberts (born 27/10/51), former operations director for the roofing division of Welsh Slate
- Paul Michael Harvey (born 22/04/57), former sales director of Welsh Slate (not a statutory director)
Christopher Law and Geraint Roberts pleaded guilty at earlier hearings. All three defendants, who are on conditional bail, will be sentenced in mid-July on a date yet to be fixed.
Notes:
- Welsh Slate was sold in December 2007 and Alfred McAlpine plc itself merged with Carillion plc in February 2008. Welsh Slate, based at Penrhyn Quarry near Bangor in Gwynedd, continues to trade under new management.
- The Serious Fraud Office is an independent government department, operating under the superintendence of the Attorney General. The aim of the SFO is to protect society by pursuing and prosecuting those who commit serious and complex fraud. Its Director is Richard Alderman.
- Fuller details will be issued once the case has been presented at court for sentencing.
Serious Fraud Office
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Press Office tel: 020 7239 7001/7045/7000/7132
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Email: press.office@sfo.gov.uk
