Pop stars hit for missing money

Dozens of Britain's best-known pop stars have fallen victim to "significant financial irregularities" at the organisation that pays their royalties.

Aura, the Association of United Recording Artists, has sacked one of its directors, Peter Horrey, and obtained a High Court injunction freezing his assets after discovering that at least £700,000 had gone missing from the amounts supposed to be paid to artists. Civil action will follow the organisation said today.

Aura represents many of the biggest names in the industry, including Robbie Williams, Blur, Travis and Tom Jones. It distributes £2 million a year in royalties from radio airplay and other public performances of their music.

"We were absolutely stunned to discover this," said Nigel Parker, Aura's company secretary. "We've been put in this position by someone who's been our trusted employee for the best part of five years."

Mr Horrey, of Stansted, Essex, refused to comment when contacted by the Standard. But he has not contested the injunction freezing his assets, which was granted at the High Court on 13 May. Aura's solicitor, Brian Howard, said: "He has accepted that he owes us money."

Mr Parker said problems first emerged when auditors investigated Mr Horrey's expenses at Christmas last year, but this turned out to be "very much the tip of the iceberg". By March, a web of "serious irregularities" had been discovered and Mr Horrey was suspended. Last month he was sacked.

Aura has now commissioned an independent audit of its accounts going back to 1999. "We have spoken to the representatives of all our biggest earners to let them know, and we've sent out a letter to all our members," said Mr Parker. "So far we've had no adverse reaction."

Mr Horrey, Aura's membership secretary and its only full-time employee, had played a key part in building up the organisation and winning members after musicians gained the right under European law to be paid for radio airplay of their work. He was described by colleagues as one of the most trusted people in the industry.

But suspicions were raised when he and his partner, Michelle Davis-Gardner, appeared to be living beyond their means. "He and his partner each have a house, and at least one of them has been bought during his time with us," said Mr Parker. The assets of Ms Davis-Gardner have also been frozen.

Mr Howard said that if Mr Horrey did not offer a defence, summary judgment against him could be made within two to three months. If, however, the court action proceeds to a hearing, it will take about a year to come before a judge.