The administrator of failed personal injury claims firm, The Accident Group (TAG), is investigating if directors siphoned-off cash before it collapsed.
The administrators of failed personal injury claims firm, The Accident Group (TAG), is investigating if its directors siphoned-off cash before it collapsed.
Creditors have been alerted to the PriceWaterhouseCoopers (PWC) investigation ahead of a meeting of ex-employees and business partners in Manchester today.
According to reports, PWC is examining creditor allegations that TAG directors allowed fraudulent claims to pass through its books.
TAG posted pre-tax profits of £17.8m in 2002, before it spiralled into losses totalling £50m in the eight months to 30 April 2003.
The decline has now prompted PWC to question the reasons behind TAG's decision to give its directors a dividend of £7.6m in 2002.
PWC is investigating whether claims-managers manipulated the system so that they pocketed cash on cases, which had little chance of success.
PWC said in its letter: "A number of issues have been brought to our attention, both as a result of our investigations and by third parties. We are therefore carrying out further investigations including, but not limited to, the following: voids/cancellations; vetting procedures and dividend policy."
