Gaelic Inns case

This case involves a chain of pubs runs by Gaelic Inns Pte Ltd. Their group finance manager, Denise Ang misappropriated over a $1million from the years 2001 to 2004. Her scheme worked as follows - she delayed banking in the pubs' cash receipts and used it for personal purposes. To cover this up, she deposited later receipts equal to the earlier cash takings. In this way, she was able to avoid detection for a lenghty period. This fraud is known as "teeming and lading". The antidote to this type of well-known fraud is to check bank statements and compare them to cash daily takings. Any discrepancy should be thoroughly investigated.

As a result of her crimes, Denise Tan was convicted of criminal breach of trust under section 408 of the Penal Code. The total sum involved was $1.006 million. Less than $10,000 was recovered from her and a $100,000 was recovered from insurers.

As a result of her case, her employer, Gaelic Inns Pte Ltd sued its auditor, Patric Lee PAC. On appeal, the case was reported as the case of PlanAssure PAC v Gaelic Inn Pte Ltd. This was because Patric Lee PAC had in the meantime changed its name to PlanAssure PAC.

Discussion of the liability of auditors and other professionals can be found in this blog -
http://professionalnegligencesg.blogspot.com/