Police raid homes in fraud inquiry (From Witney Gazette)

Police raid homes in fraud inquiry

12:00pm Wednesday 31st January 2007 in Witney By Maggie Hartford

POLICE raided two Oxfordshire homes as a fraud investigation was launched into Oxfordshire software firm Torex.

Last week Torex, which supplies check-out software to retailers like Tesco and Woolworth's, shocked the City when it suspended trading in its shares "pending clarification" of its financial position.

The Serious Fraud Office said it had searched three properties over the last two days - two in Oxfordshire and one in Warwickshire - with the City of London Police.

The company employs 65 people at its headquarters in Range Road, Witney, and 53 workers in Banbury.

A SFO spokesman said there were no arrests and no further details would be given. Torex Retail also declined to comment.

Torex was set up at Stonesfield by Chris Moore, whose address at Companies House is given as Fanthill, Hayway Lane, Hook Norton.

He became a multi-millionaire when he sold the health software arm of Torex to Isoft two years ago.

Isoft, based in Banbury, is also under investigation for financial irregularities - not by police, but by the Financial Services Authority.

Torex said earlier this week that it was advised by its recently installed finance director, Marcus Leek, to suspend the shares after warning that full-year results were likely to be "significantly below market expectations".

Mr Leek's address is given as Kenilworth, Warwickshire. Another director, Neil Mitchell, who took over as chief executive in September, lists his address as Leckford Road, Oxford.

Torex spokesman Ginny Pulbrook, explaining the suspension earlier this week, said: "It is a bit drastic, as it is the first time people have been told that forecasts are not in line.

"But the finance director decided that rather than issue something in haste, he needed to be given time to give a fuller breakdown.

"It is not to do with a lack of orders, and as far as the employees are concerned, it is business as usual."