Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Swithland directors found guilty of fraud

Jill Treanor
Wednesday 19 February 1997 20:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Two former directors of what was once one of the country's largest privately owned car sales groups have been found guilty of fraudulent trading in a case brought by the Serious Fraud Office.

But the jury at Oxford Crown Court failed to reach a verdict on the same charge against a third former executive.

The jury convicted John Hayes, the former chairman and founder of Swithland Motors, and David Sharratt, the finance director, of fraudulent trading between 1 November 1991 and 26 November 1993. They will be sentenced tomorrow.

The judge dismissed the jury after it failed to agree on the charge against Richard Hayes, 35, the operations director and brother of the chairman.

The SFO opened the case, in conjunction with Customs and Excise and the Leicestershire Constabulary fraud and commercial branch, after Swithland's aborted stock market flotation in November 1993.

The court heard that John Hayes was "the spider at the centre of the web" and would have benefited by some pounds 1m if the flotation had been successful. He was described as "the leader and guiding light of Swithland".

Swithland was based in Mountsorrel, Leicestershire and put into receivership in November 1993. The receivers established that, contrary to accounting documents, the car dealership was grossly insolvent to the tune of pounds 25m.

The jury convicted Sharratt on Tuesday and reached its verdict on John Hayes yesterday.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in