Page 16 - How Not To Cook The Books Article

Mr Powar said transferring funds to connected companies at a time
when Wrekin Construction was insolvent and under severe financial
pressure put the creditors at increased risk:

"A business deal which involved the creation of a sham
invoice ought to have set alarm bells ringing for the directors
and made them question the appropriateness of the whole
deal in the first place," he said.

"Directors who recklessly present misleading information in
this way damage the confidence of companies to do

business with each other and undermine the business
environment.” (9)

Creative Accounting Comments

“The Wrekin Ruby was not the only piece of creative accounting
that the shyster who owned Wrekin (for less than two years) used”
(10)

For example:

1 2
“Common accounting practice is “Apparently in the last 12 months

to write off an asset in the books of Wrekin's life over £2 million was
over a period of years. Wrekin taken out of the company by these

would write off, say, a JCB kind of scams.
excavator over 4 years. At this The reason I know this?
point Wrekin's owner would sell I was an employee of Wrekin for
the JCB to a plant disposal many years right up until their

company he owned (Equatrek) for demise. The JCB scam was one
£1. Three months later Wrekin that was uncovered by some of
would buy the same JCB back the guys below Director level a

from Equatrek at full market value, couple of weeks before they went
say £25,000. A nice way to take under - and yes it has been
£25,000 out of the company and bought to the attention of the

into the owners pocket.” Administrators.”

Source: http://www.housepricecrash.co.uk/forum/ (10)