The Financial Conduct Authority (FCA) has announced that it has begun criminal proceedings against the former chief executive, the former chief financial officer and the former finance director of Redcentric Plc.

The company issued unaudited interim results in November 2015 and audited final year results in June 2016 which it is alleged materially misstated its net debt position and overstated its true asset position.

The individuals have been charged with making a false or misleading statement, contrary to section 89(1) of the Financial Services Act 2012. Between them they also face charges in relation to false accounting (contrary to section 17(1)(a) of the Theft Act 1968); making a false or misleading statement to an auditor (contrary to section 501 of the Companies Act 2006) and fraud by false representation (contrary to sections 1 and 2 of the Fraud Act 2006).

The FCA censured the company, Redcentric, for market abuse in connection with the issue in June 2020 and the company agreed to put in place a compensation scheme for affected purchasers of its shares (see our earlier post on the issue).

Alex Kay
Alex Kay
+44 20 7466 2447

Antonia Kirkby
Antonia Kirkby
+44 20 7466 2700

Roddy Martin
Roddy Martin
+44 20 7466 2255