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THE Serious Fraud Office may launch a full probe into the Iceland supermarkets chain and the circumstances surrounding a £13.5m share deal by former chairman Malcolm Walker.
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The SFO has been passed a dossier of evidence by the DTI, which has been investigating the share deal for two years. The SFO will consider whether to take it further and pursue criminal charges. Its inquiry will focus on whether Iceland's trading problems were deliberately kept under wraps. Several individuals could be involved.
Walker had to resign from Iceland (now called Big Food Group) in January 2001, after new chief executive Bill Grimsey's shock profit warning sent the shares crashing.
Former finance director Andy Pritchard quit soon after. Walker said last night: 'I completely refute any suggestion of wrongdoing'. He has not heard from the DTI for more than a year.
Walker sold his shares three weeks before the warning. He knew sales were behind forecasts but said profits were on target. The shares, 339p when he sold, are now 57 3/4p. The SFO refused to confirm or deny it has been passed DTI documents.
Separately, the former auditors to collapsed trade finance group Versailles were accused of breaching accountancy ethics by the profession's investigator.
Two complaints were laid against Nunn Hayward by the accountants' Joint Disciplinary Scheme. If found guilty at a tribunal, it could face a fine and a reprimand.
Nunn is accused of sending 'letters of comfort' that certify financial health, to Versailles directors. Nunn is accused of lacking 'due skill, care and diligence'.
Thomas Dales, Nunn's ex-lead auditor to Versailles, was struck off and told to pay £10,000 costs last year.
Former Versailles executives Carl Cushnie and Frederick Clough face trial on fraud charges on October 2.
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