Company boss spent £104,000 on firm's credit card in lapdancing club
Published 25/03/2010 | 16:38
A British company director spent more than £100,000 (€111,000) on his firm's credit card in a lapdancing club and falsified profits so he could get a bigger bonus, a court has heard.
Ian Tulloch, 59, a married father-of-two, spent the equivalent of nearly twice his annual salary on naked dancing girls at the Spearmint Rhino club in central London.
The sum would have paid for more than 5,000 nude lap dances, at £20 a time.
All the while, Tulloch, the £55,000-a-year (€61,500) managing director of a steel supply firm, was financing the visits with money invented by falsifying accounts.
He invented several elaborate scams in order to boost the company's profits and award himself bonuses of £73,000 (€81,500).
In reality the firm was making losses and 11 people had to be made redundant at KB (Northern) Reinforcements after Greater Manchester Police uncovered a £3m (€3.35m) black hole in their accounts.
When fraud squad investigators went through Tulloch's personal finances they found he had made credit card payments of £104,000 (€116,000) to Spearmint Rhino alone between 2004 and 2006.
Tulloch, of Lordswood Close, Chorley, Lancashire, pleaded guilty to one count of fraudulent trading, 29 counts of falsifying company documents and two counts of making a false statement to auditors at an earlier hearing.
Two counts of theft were left on file.
He was sentenced yesterday to 12 months' imprisonment suspended for two years at Minshull Street Crown Court, Manchester.
He was also ordered to complete 300 hours' community work and ordered to pay £150,000 (€167,000) compensation.
Detective Constable Julian King, from GMP's Fraud Unit, said: ''In the current economic climate most people are doing what they can to help their employees survive - while Tulloch just helped himself.
''His greed almost brought KBN to its knees and sadly led to a number of people losing their jobs in terribly uncertain times.''
Tulloch started as a salesman at the company 30 years ago and became managing director in the late 1980s.
He admitted falsifying paperwork to bosses and was sacked in 2006.
After an internal investigation exposed the scale of his offences police were called in and he was arrested in May 2007.