Wednesday, April 19, 2017 - Accountant gets 32 months for £200k fraud at LME

London Metal Exchange (LME)
Source - https://www.cchdaily.co.uk/accountant-ps200k-fraud-london-metal-exchange
Where - United Kingdom
Cost - 204,405 GBP
Business line - Corporate Services

A former head of the accounting department at the London Metal Exchange (LME) has been jailed for 32 months for committing £200,000 worth of fraud.

Annmarie Norris used LME credit cards to withdraw cash for various luxury items, including a Caribbean cruise, a holiday in Greece, dental work, a new kitchen and decking for her garden.

The court heard that the fraud was able to take place due to “extremely lax” accounting practices at the company. Norris was first employed by the LME in 1997 and was dismissed in October 2015. During her time there, she worked her way up to head of accounting, despite not having a professional qualification.

The fraud took place in the two-and-a-half years between December 2012 and July 2015. The losses remained undiscovered for so long due to the “chaotic” accounting procedures at the exchange, according to the prosecution.

Norris is expected to serve half of the 32-month sentence and pay restitution, the amount of which is still to be determined by the LME. The LME said in statement it had “reviewed all its internal accounting processes and has put in place additional robust procedures to ensure the utmost security in financial administration.”