Case No. CR-2019-LDS-000669

249.There is a general allegation that the Relevant Respondents enjoy significant benefits from (and/or allowing LWC and Portbond) to suffer from diversion to all of some of them of cash received from sales which ought to be accounted to LWS as set out in paragraphs 31-2 of the Petition (see paragraph 10(iii)(b) Petition). Paragraph 31 of the Petition refers to the allegation being a matter for “expert evidence”. There is then a reference back to paragraph 25, which is an allegation that Charlie Pickering became aware of the cash sales and that employees had been instructed by John to use “internal tickets” so that the sales could not be traced. Paragraph 32 alleges that the cash sales and retention of the cash proceeds by John involved breaches of duty by the Relevant Respondents as directors. Of course, as regards James that could only be in respect of alleged cash sales after he had been appointed a director.250.The alleged cash sales also appear in the context of the allegations regarding the investigation of sums apparently received by Lisa and her dismissal/removal.251.In brief, the allegations regarding the cash sales are as follows.252.Lisa’s duties, it is said, included the checking of finished stock of granules on Friday evenings after employees had gone home and that on Mondays she would re-check the stock levels of finished materials as well as reviewing invoices delivery notes, weighbridge tickets and paperwork and input the data into the Pegasus system (paragraph 12 of the Petition). (The Pegasus system did not however contain detailed stock records).253.In about September/October 2015, Lisa confronted John about missing and unaccounted finished stock. His excuse was that the finished stock was not of a good enough quality and had had to be “re-run”. In fact however, this explanation was false. He was selling the stock for cash on Saturdays (to avoid detection by the claimant) and not accounting for the same. He refused to put the stock into the Pegasus system because he did not want to lose the cash sales (paragraphs 13 and 14 of the Petition.)(2)