Terry used company money for swimming pool and holiday, suit alleges
The company formerly known as Quindell has accused founder and former chairman Rob Terry of claiming £185,000 in “fraudulent” expenses while at the company, the Sunday Times reports.
The insurance technology firm, now known as Watchstone Group, alleges that Terry spent £100,000 on a swimming pool for his family home in Hampshire and £32,000 on a holiday in Mallorca for his fifth wedding anniversary.
The allegations were made in a counterclaim and defence filed by Watchstone in response to a lawsuit from Terry.
Terry’s suit is aimed at recovering outstanding amounts of his severance pay, which he claims Watchstone has withheld.
Watchstone said in the counterclaim, filed last month and obtained by the Sunday Times: “The expenses were each fraudulent.
“[Terry] knew that he was not entitled to fund such personal expenditure from company resources.”
Terry left Quindell on 18 November 2014 after a controversial share deal he and two other then-directors entered earlier that month. The deal was originally billed as the directors buying more Quindell shares, but it later emerged that the three directors had effectively sold shares under the transaction.
Terry was awarded severance pay of almost £1.5m. He received £740,000 in December 2014 with the rest to be paid in monthly instalments.
He has sued Watchstone to recover the final four payments, totalling £250,000, the Sunday Times said.
But in its counterclaim and defence, Watchstone alleges Terry broke his settlement agreement by failing to disclose the “fraudulent” expenses. The company is claiming “at least” the 1.2m it has already paid him.