ICAEW Member Admits Lapse in Conduct
The AADB, an operating body of the FRC, has bared the outcome of the disciplinary hearing against Stuart Pearson, a Member of the ICAEW, former chief executive of AIM-listed investment services company Crown Corporation Limited (later named Langbar International Limited).
The Executive Counsel of the AADB filed an admitted disciplinary Complaint against Stuart Pearson in relation to various announcements made to the market during 2005 and his conduct in promoting Langbar International Limited to investors.
In summary, Mr Pearson accepted that his conduct had, in relation to claims made through official London stock market announcements in 2005 and personally to investors, fallen short of the standards reasonably to be expected of ICAEW members.
In particular, Mr Pearson accepted that he failed to act with due skill care and diligence in issuing these announcements and that he recklessly misled the investing public as to the true financial position of Langbar International Limited.
In addition to these matters, the admitted disciplinary Complaint also included the fact of Mr Pearson’s convictions, at Southwark Crown Court in June last year, of three counts of misleading statements by falsely claiming that the company had assets held by Banco do Brasil and also that some assets were being transferred to Langbar International Limited.
The AADB Tribunal found that Mr Pearson had committed misconduct in respect of each allegation in the admitted disciplinary Complaint before it. The Tribunal therefore imposed an order for the exclusion of Mr Pearson as a Member of the ICAEW for a recommended minimum period of five years with immediate effect. Mr Pearson also agreed to pay £20,000 towards the AADB’s costs in investigating the case.