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FOR IMMEDIATE RELEASE Griffins and RSM Robson Rhodes called in as Casson Beckman fold March 2003 Casson Beckman & Partners (“CBP”) a firm of Licensed Insolvency Practitioners ceased trading in December 2002 following regulatory action taken by the Insolvency Practitioners Association (“IPA”) against its main remaining office holder, John Bennett. At the time of this action, Mr. Bennett had already fled to the United States, leaving the business with debts of several million pounds. The firm was placed into liquidation in the High Court of Justice on 18 December 2002 and, on the same day, its two equity partners, John Grisman and David Nisbet, were made bankrupt. Subsequently, Kevin Goldfarb of Griffins and Kevin Hellard of RSM Robson Rhodes have been appointed to deal with some 300 cases previously administered by Mr. Bennett. Background Difficulties at CBP first began to emerge in 1999 when regulatory action was taken against its then senior partner, David Nisbet, who was prevented from renewing his insolvency licence. At about the same time, Griffins, acting for a number of creditors including HM Customs and Inland Revenue, had commenced legal action against the firm and some of its former partners for their negligent handling of a company in administration. Griffins eventually recovered £1.1m for the creditors in that case. The IPA action followed another claim made on behalf of creditors resulting in a court order requiring CBP to repay over £100,000, which had been drawn in fees by the firm without the permission of creditors. In September 2002, the day before winding up proceedings were brought against CBP by Moon Beever, solicitors, acting for HM Customs & Excise for unpaid VAT, a number of Mr. Bennett’s active appointments were transferred to former employees of the firm and to another firm that they had attempted to merge with. Creditors Meetings Two months later, in November 2002, CBP made proposals for a Partnership Voluntary Arrangement. At the same time John Grisman and David Nisbet made proposals for Individual Voluntary Arrangements. The proposals were rejected by creditors following allegations that votes were being improperly manipulated. John Bennett, now abroad, claimed that he was owed in excess of £4million. A figure that had risen from an initial estimate of £100,000. Mr. Bennett also assigned the debt to someone else to attempt to have the vote treated as a non-associated debt. The Nominee was initially minded to accept sufficient parts of this claim to vote through the Arrangement against the overwhelming majority of truly independent creditors. As a result of intense creditor pressure, the Nominee changed his mind and rejected enough of Mr. Bennett’s claim to make sure that the Arrangement did not succeed. As a result the firm was placed into liquidation and the two equity partners were declared bankrupt. In February 2003, Moon Beever, again acting for HM Customs & Excise, succeeded in obtaining a ground breaking order, reversing the transfers of insolvency appointments made in September to associates of CBP. The court appointed Kevin Goldfarb of Griffins and Kevin Hellard of RSM Robson Rhodes to jointly manage the estates. Later that month, the High Court also ordered that Griffins and RSM Robson Rhodes jointly take over the remaining appointments held by Mr. Bennett at the time the IPA took its action against him. There are approximately 300 estates to be dealt with. Mr. Bennett has now received a £75,000 fine from the IPA, and an order for costs of £35,000 was also made against him. He has been barred from acting as an insolvency practitioner for 10 years. Griffins are now carrying out an investigation into each case. In addition to the issues pertaining to each separate estate, we will be investigating the conduct of CBP in relation to each estate previously under its control. The whole project has coincided with the expansion of the Griffins London office. We have employed a specialist forensic accountant to head up a litigation support department, as well as an additional administrator. We have also been able to make use of the resources of Rayner Essex Chartered Accountants, the firms ‘parent’, where some 70 staff are employed and surplus space is available. In particular we are making use of additional accommodation available to us less than half a mile from Russell Square where we have established a Cassons ‘incident room’, equipped with the latest technology and links to Russell Square. This expansion is ongoing as we meet the demands of an imminent recession. Griffins Press Release March 2003
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