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Ex-Versailles chairman to sue former FD

The former head Versailles has joined PricewaterhouseCoopers in suing Frederick Clough, the former FD of the collapsed trade finance company.

Carl Cushnie is suing Clough for £13m alleging that Clough ‘misappropriated money’ from Marrlist, a company Cushnie set up in 1989, which owned 54% of Versailles.

Versaille floated on the Alternative Investment Market in 1995 and grew to a market value of Pounds 630m by the time its shares were suspended in December 1999, after accounting irregularities were discovered.

Cushnie has denied any knowledge or involvement in the alleged fraud.

Clough is already being sued by PwC, the the group’s receivers. During the firm’s investigations it concluded Versailles was the victim of fraud and issued a writ against Clough for Pounds 50m.

The firm, in partnership with the Serious Fraud Office has been conducting a forensic fraud investigation since January 2000. PwC issued a report in April accusing Versaille of booking £69m of fictitious transaction and only Pounds 5m of the Pounds 100m of debts recorded in the accounts as owed to Versailles by customers.


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