DISCIPLINARY COMMITTEE OF THE ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS REASONS FOR DECISION In the matter of: Mr Lee Nolan Heard on: 22 October 2015 Location: The Chartered Institute of Arbitrators, 12, Bloomsbury Square, London WC1A 2LP. Committee: Mrs Judith Way (Chairman), Mr Martin Davis (Accountant) and Ms Lynne Jones (Lay) Legal Adviser: Mr Mark Ruffell Persons present and capacity: Observers: None Ms Kayleigh Long (Case Presenter) Ms Sophie Cubillo-Barsi (Committee Officer) SERVICE OF PAPERS 1. Mr Nolan was not present and was not represented. The Committee had before it a service bundle (numbered pages 1-16) and a hearing bundle (pages 17-38). The notice of the proceedings was appropriately served upon Mr Nolan s registered address. In addition, there was correspondence with Mr Nolan showing that he was aware that he was subject to disciplinary proceedings and that he had received a copy of the notice of the hearing and case papers at his current address of Guernsey Prison where he is a serving prisoner. 2. The Committee determined that adequate notice of the hearing had been provided in accordance with Regulations 9(1)(a) and 21(1) of the Complaints and Disciplinary Regulations. 1
PROCEEDING IN ABSENCE 3. ACCA submitted that the Committee should proceed in the absence of Mr Nolan. Mr Nolan had been written to informing him that alternative arrangements including a video link could be arranged and he had not requested that such arrangements should be made. There was no request for an adjournment and ACCA submitted that the Committee should determine that Mr Nolan had chosen not to make any alternative arrangements to secure his attendance and therefore he had voluntarily absented himself. 4. The Committee accepted the advice of the Legal Adviser, that whilst it had a discretion to proceed in absence, it should only do so with the utmost care and caution having regard to the factors set out by Lord Bingham and endorsed by the House of Lords in R. v. Jones (Anthony William) (No.2) [2002] UKHL 5. The Committee determined that the lack of request for an adjournment or request for a video link or other method of participation meant that Mr Nolan had voluntarily absented himself. In considering the extent of any disadvantage in proceeding in Mr Nolan s absence, the Committee noted that the facts supporting the conviction were admitted by Mr Nolan and the gravity of those admitted facts meant that it was in the public interest to proceed with due expedition. The Committee determined to proceed in the absence of Mr Nolan. ALLEGATION: 5. Mr Nolan faced the following allegation: Allegation 1: Pursuant to bye-law 8(a) (ix), Mr Lee Nolan is liable to disciplinary action, by virtue of his conviction on 25 February 2015, having been found guilty of fraud by abuse of position and entering into or becoming concerned with a money laundering arrangement, which is discreditable to the Association. 2
BRIEF BACKGROUND 6. Mr Nolan was first registered as an ACCA student on 16 September 2011 and is still a student member. He was employed as a Group Accounts Administrator by Castle Holdings Limited from 2 May 2013 until 2 March 2015. Between 6 August 2013 and 25 September 2014, he defrauded Castle holdings limited, his employer, by making unauthorised payments into external accounts to the value of 542,555.32. He pleaded guilty before the Royal Court of Guernsey to the offence of fraud by abuse of position and money laundering. He was sentenced on 25 February 2015 when he was aged 30 and was treated as a man of previous good character. He explained by way of mitigation that he was desperate for money and saw an opportunity to make some money. He received about half the money that he had laundered. Mr Nolan was sentenced to a term of imprisonment of 4 years and 6 months. DECISION ON ALLEGATION AND REASONS 7. The Committee accepted the advice of the Legal Adviser and had regard to all the papers placed before it, the submissions made by ACCA and the correspondence from Mr Nolan. 8. The Committee was satisfied that Mr Nolan was still on the student register and liable to disciplinary action. The Committee was satisfied on the balance of probabilities that Mr Nolan had been so convicted. The Committee was satisfied on the balance of probabilities that Mr Nolan s proven conduct was a gross breach of trust and involved a substantial amount of money, whilst he was working as a Group Accounts Administrator and was an ACCA Student Member. The Committee was satisfied on the balance of probabilities that such conduct brought discredit on the Association and to the accountancy profession and therefore the allegation was proved. SANCTION AND REASONS 9. The Committee had regard to the ACCA s Guidance for Disciplinary Sanctions. The Committee noted the seriousness of the allegation, that it was sustained over a lengthy period, was an abuse of trust, and had an 3
adverse effect on others and on the company and its financial standing and reputation. The Committee also noted that Mr Nolan was of previous good character and had pleaded guilty to the criminal offences. No further explanation or matters of mitigation had been supplied by Mr Nolan. The Committee considered the sanctions in order of ascendancy and determined that the allegation was too serious for there to be no order, or for an order that he be admonished or reprimanded. The Committee determined that most of the factors that would support a severe reprimand were not present and it would not adequately reflect the gravity of the allegation. The Committee determined that Mr Nolan s behaviour was fundamentally incompatible with being a member and that the only appropriate sanction was removal from the register. Therefore, the Committee determined that Mr Nolan s name be removed from the Register. The Committee determined that no application for readmission by Mr Nolan may be considered until the expiry of 5 years from the effective date of this order. COSTS AND REASONS 10. ACCA asked for costs in the sum of 2531.50. The Committee concluded that the costs of 2531.50 requested by ACCA were unreasonable in the context of the necessary preparation for this case. The Committee noted that Mr Nolan had not completed a statement of financial position but it was clear that he had been subject to confiscation proceedings and was a serving prisoner. Therefore, the Committee determined that this was an exceptional case where no order for costs should be made as Mr Nolan was unlikely to be able to pay the costs requested within a reasonable period of time and the making of such an order would be disproportionate. EFFECTIVE DATE OF ORDER 11. The Committee determined that it was in the interests of the public that the order should have immediate effect. 4
PUBLICITY 12. The Committee considered the application for publicity and that ACCA s regulations require ACCA to publish the Committee s findings and orders by way of a news release naming the relevant person, as soon as practicable. The Committee has discretion as to which publications the news release should be sent, and discretion in exceptional circumstances to direct that the relevant person is not named. The Committee determined that no exceptional circumstances existed and ordered that a news release be issued to ACCA s website and to the local press referring to Mr Nolan by name. Mrs Judith Way Chairman 22.10.2015 5