UK
Ex-Patisserie Valerie finance chief denies fraud before bakery chain collapse
Tristan Kirk
Tue, 10 October 2023
The cake shop was put into administration in January 2019. (Mike Egerton/PA) (PA Archive)
The former chief financial officer at collapsed bakery chain Patisserie Valerie has denied fraud as he appeared in court alongside his wife for the first time.
Christopher Marsh, 49, Louise Marsh, 55, Pritesh Mistry, 41, and Nileshkumar Lad, 50, are all accused of defrauding the company’s shareholders and creditors between October 2015 and October 2018.
It is said they put the business in peril by inflating profits, hiding debts, and presenting bogus figures in the company’s annual accounts and public statements.
The Serious Fraud Office, which brought the criminal charges, said £28 million was represented in the company accounts, while around £10 million in debts were concealed.
Westminster magistrates court heard banks were lied to about reserves in the accounts of Patisserie Holdings Plc as well as the reasons for cheques not going through.
It is also alleged the company’s auditor, Grant Thornton, was handed bogus invoices for fake vehicle purchases.
Marsh, his wife Louise who is an accountant, his deputy Mistry, and financial consultant Lad all appeared in the dock for a brief hearing on Tuesday.
The court was told Mr Marsh intends to fight the charges at trial, while the other defendants did not indicate any pleas. District Judge Daniel Sternberg sent the case to Southwark crown court for trial.
A fraud investigation was opened in 2018, shortly before the bakery chain tumbled into administration with a £94 million hole in its accounts.
Louise Marsh, pictured leaving Westminster magistrates court, is accused of fraud at Patisserie Valerie (ES/Kirk)
The company and many of its shops were later bought out of administration by Causeway Capital Partners, an Irish private equity business, for £5 million.
When announcing the charges, outgoing SFO director Lisa Osofsky said: “Patisserie Valerie’s abrupt collapse rocked our high streets, leaving boarded-up shops, devastating job losses and significant investor losses in its wake.
“Today is a step forward in getting to the bottom of this scandal.”
All four defendants are accused of conspiracy to defraud.
Lad, who lives in Tenby Avenue, Harrow, Mistry, of Rosamund Avenue, Leicester, and Christopher Marsh, who lives with his wife inKensington Close, St Albans, are all accused of conspiracy to defraud, five charges of fraud by false representation, and making or supplying an article for use in fraud.
Christopher Marsh also faces a further allegation of making false statements as a company director.
They have been set free on bail until a plea hearing at Southwark crown court on November 7.
Tristan Kirk
Tue, 10 October 2023
The cake shop was put into administration in January 2019. (Mike Egerton/PA) (PA Archive)
The former chief financial officer at collapsed bakery chain Patisserie Valerie has denied fraud as he appeared in court alongside his wife for the first time.
Christopher Marsh, 49, Louise Marsh, 55, Pritesh Mistry, 41, and Nileshkumar Lad, 50, are all accused of defrauding the company’s shareholders and creditors between October 2015 and October 2018.
It is said they put the business in peril by inflating profits, hiding debts, and presenting bogus figures in the company’s annual accounts and public statements.
The Serious Fraud Office, which brought the criminal charges, said £28 million was represented in the company accounts, while around £10 million in debts were concealed.
Westminster magistrates court heard banks were lied to about reserves in the accounts of Patisserie Holdings Plc as well as the reasons for cheques not going through.
It is also alleged the company’s auditor, Grant Thornton, was handed bogus invoices for fake vehicle purchases.
Marsh, his wife Louise who is an accountant, his deputy Mistry, and financial consultant Lad all appeared in the dock for a brief hearing on Tuesday.
The court was told Mr Marsh intends to fight the charges at trial, while the other defendants did not indicate any pleas. District Judge Daniel Sternberg sent the case to Southwark crown court for trial.
A fraud investigation was opened in 2018, shortly before the bakery chain tumbled into administration with a £94 million hole in its accounts.
Louise Marsh, pictured leaving Westminster magistrates court, is accused of fraud at Patisserie Valerie (ES/Kirk)
The company and many of its shops were later bought out of administration by Causeway Capital Partners, an Irish private equity business, for £5 million.
When announcing the charges, outgoing SFO director Lisa Osofsky said: “Patisserie Valerie’s abrupt collapse rocked our high streets, leaving boarded-up shops, devastating job losses and significant investor losses in its wake.
“Today is a step forward in getting to the bottom of this scandal.”
All four defendants are accused of conspiracy to defraud.
Lad, who lives in Tenby Avenue, Harrow, Mistry, of Rosamund Avenue, Leicester, and Christopher Marsh, who lives with his wife inKensington Close, St Albans, are all accused of conspiracy to defraud, five charges of fraud by false representation, and making or supplying an article for use in fraud.
Christopher Marsh also faces a further allegation of making false statements as a company director.
They have been set free on bail until a plea hearing at Southwark crown court on November 7.
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