Versailles director milked millions

FREDERICK Clough, the former finance director of failed trading finance company Versailles, admitted today that he milked millions from the firm and helped present false accounts to the firm's backers.

Clough, 66, was appearing as a prosecution witness at Southwark Crown Court in the trial of Versailles' founder Carl Cushnie and accounting assistant Lorraine Jones, both of whom pleaded not guilty to fraud-related charges.

The court heard that loans had been made to Versailles from Prudential. When the insurance group carried out due diligence, false accounts were provided.

Clough alleged Cushnie knew the multimillion-pound debtors' list was false.

Clough told the court that Versailles had been set up when Cushnie's software firm, Pentagon Corporate Solutions, had been purchased from Hill Samuel for £200,000 as part of a £500,000 debt it owed to the bank.

The case continues.