A former boss of a Gwynedd bus company was put on trial after being accused of fraud and false accounting.
John David Hulme, the former managing director of the bus company, denied any involvement. The charges related to more than £800,000 in public funding claimed by Padarn Bus Ltd for concessionary fares. Mr Hulme was accused of inflating the amount of concessionary passengers the company was carrying and doctoring forms sent to Gwynedd council.
Mathew Dunford, the prosecutor, told the jury: “The fraud that was going on involved the concessionary fare scheme, which provides free bus transport in Wales for those over 60. The bus companies that carry the concessionary passengers are able to claim back from the local council the cost of those journeys.
“It resulted in the company getting £814,665.78 more than it was entitled to between July 2011 and March 2014. For the period between July 2011 and December 2012 — until the defendant was suspended — the sum is £495,857.08.
“John Hulme was the managing director of the company from its foundation on 7 April 2009, until his suspension of 12 December 2012. His suspension was not in relation to the fraud and he was dismissed on 12 June 2013.”
Mr Dunford added that police discovered during their investigation that Mr Hulme had deposited £41,660 in cash into his bank account. This amount was not declared to HMRC.
Although businesses should be alert to the possibility of fraudulent activity, it’s not always possible to spot every trick in the book before it’s too late. That’s where forensic accounting can help you to track down where your company’s money has gone and can help you to recover any losses.
For expert help with a fraud investigation, contact Frenkels Forensics for an independent appraisal.
By Vitek Frenkel – find me via Google+.