East Renfrewshire man facing jail over embezzlement charges
A financial director, from East Renfrewshire, who used the company credit card to buy a new car is facing jail for embezzling almost £43,000.
A financial director, from East Renfrewshire, who used the company credit card to buy a new car is facing jail for embezzling almost £43,000.
Douglas McAllister, 48, wrote cheques to ‘cash’ that pocketed the money from.
He used Mandor Textile Centre’s credit card to buy a car and fuel, among other personal things.
And, diverted funds to his own account by changing the bank details.
But, he was snared with his boss checked the company accounts after a downturn in business.
McAllister, from Eaglesham, pled guilty at Glasgow Sheriff Court to embezzling £42,395 between February 2012 and November 2014.
The court heard McAllister worked for the fabric company owned by Karen and Michael Deutsch and was employed as financial director between 2007 and December 2014.
Procurator fiscal depute Elizabeth Aitken said McAllister had previously been employed as a company accountant with the Renfrew Street firm.
He took “total control of all finances” while Mrs Deutsch was unable to, due to significant health difficulties.
An email was found in October 2014 from McAllister to a former employee which “raised concerns” and lead Mrs Deutsch to examine the company credit card.
Miss Aitken said: “The accused had use of the company credit card for his expenses and to cover his petrol costs.
“It showed various purchases which were clearly unrelated to the business.”
He was challenged and admitted in an email using the company credit card claiming he had used “the wrong card".
After getting advice from an employment solicitor, McAllister was suspended on full pay.
The court heard McAllister used company cheques made payable to “cash” which was not normal practice, while recording in the cheque stubbs that the money had been paid to legitimate payees.
Miss Aitken added" “Investigations revealed that the accused had made numerous withdrawals from the petty cash for fuel and mileage as well as using the credit card to make similar purchases.
“There were also a number of unauthorised BACS transfers from customers which the accused diverted in to his personal bank account.”
McAllister also used the credit card to buy a car and road tax.
He agreed to and has repaid £30,000 of the money and was surprised when the matter was reported to the police.
They revealed the full amount was more than £42,000.
During a police interview he made “full admissions” of using various methods to defraud his employers and claimed he had a difficult working relationship and was stressed and depressed.
He has borrowed money off of friends and family and plans to borrow more to repay the full amount.
Defence lawyer Ross Yuill said: “I can confirm that Mr McAllister has repaid the sum of £30,000 in relation to this matter.
“It’s the intention of Mr McAllister during the period of deferment to attempt to obtain the remainder of the amount.”
He added that his client was surprised when the police became involved because he had paid money back that the matter would not be reported.
Sheriff Kenneth Hogg deferred sentence until next month and his bail was continued.
He told McAllister: "You should be aware at this stage all options are available to me, such options include the potential of a jail sentence."