Shift F7 boss speaks out over fraud impact

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Shift F7 boss speaks out over fraud impact

Microscope contributor

Shift F7 has revealed the biggest impact on its business of the frauds perpetrated by a former sales exec was the man hours it took to help the police build a case.

As revealed yesterday, Ferenc Kormos, who stole £47,000 worth of kit including laptops and screens from the Surrey-based reseller, appeared at crown court for sentencing after admitting the crimes, which he used to fund his drug habit.

The frauds began in October 2009, 13 months after Kormos joined Shift F7, when he faked orders and confirmation emails from clients and changed the delivery option to pick up the kit himself rather than have it couriered.

Simon Ognall, managing director at Shift F7, said the crimes had slightly dented staff morale, left the business out of pocket and ended its trading relationship with several small customers used by Kormos in the frauds.

"It hasn't had an impact on our cash flow, credit lines or our ability to trade, but the biggest impact on the business was the amount of time it took to work with the police to bring out a prosecution, it was tens of man days" he said.

"We dealt with suppliers in a transparent fashion, disclosed the details [of the frauds] to the credit agencies and our creditors and because of that it has had a neutral impact on our business," he added.

A customer that had received an invoice for a number of laptops and digital cameras that it did not order or receive alerted Shift F7 to the scams, fortuitously limiting the damage Kormos could cause.

Ognall said internal controls have been tightened making it more difficult to perpetrate and helping the business identify the frauds more quickly.

The court case is to be reconvened on 11 October after Judge Peter Moss yesterday asked for Kormos' barrister to present more information in his defence before the sentence is issed.  

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