{"id":864548,"date":"2025-07-24T03:17:53","date_gmt":"2025-07-24T08:17:53","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/07\/24\/date-finally-set-for-carillion-directors-1m-fines-appeal\/"},"modified":"2025-07-24T03:17:53","modified_gmt":"2025-07-24T08:17:53","slug":"date-finally-set-for-carillion-directors-1m-fines-appeal","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/07\/24\/date-finally-set-for-carillion-directors-1m-fines-appeal\/","title":{"rendered":"Date finally set for Carillion directors\u2019 \u00a31m fines appeal"},"content":{"rendered":"
\n

\"Carillion<\/p>\n

\n

A tribunal court has finally set a date to hear appeals by three former Carillion directors over their fines, totalling almost \u00a31m \u2013 three years after they were first lodged.<\/span><\/p>\n

The Financial Conduct Authority (FCA)<\/span> issued penalties worth a combined \u00a3870,000 in June 2022<\/span><\/a> after concluding that the directors had \u201cacted recklessly\u201d by issuing \u201cmisleadingly positive\u201d financial updates about the doomed contractor, which went under in January 2018.<\/span><\/p>\n

Former chief executive<\/span> Richard Howson<\/span><\/a> was fined \u00a3397,800, while former finance directors<\/span> Richard Adam<\/span><\/a> and<\/span> Zafar Khan<\/span><\/a> were told to pay \u00a3318,000 and \u00a3154,000 respectively. They were each later banned from being company directors for between eight and 12.5 years.\u00a0<\/span><\/p>\n

However, the trio lodged appeals against the fines on 22 July 2022.<\/span><\/p>\n

Three years later, <\/span>Construction News<\/span><\/i> can reveal that the Upper Tribunal (Tax and Chancery Chamber) has finally published hearing dates for the appeals to take place in February 2026.\u00a0<\/span><\/p>\n

The former directors will only be forced to pay up if a tribunal judge rules that the fines should be upheld or amended, meaning they have yet to pay a penny of the combined \u00a3870,000.\u00a0<\/span><\/p>\n

When announcing the fines in 2022, the FCA said it would have also fined Carillion \u00a337.9m for publishing misleading accounts, had it not already collapsed into liquidation with \u00a37bn of liabilities and just \u00a329m in cash.\u00a0<\/span><\/p>\n

In a statement released after the three directors lodged their case to the Upper Tribunal, the financial regulator said financial statements published by Carillion on 7 December 2016, 1 March 2017 and 3 May 2017 were \u201cmisleading and did not accurately or fully disclose the true financial performance of Carillion\u201d.<\/span><\/p>\n

\u201cThose announcements made misleadingly positive statements about Carillion\u2019s financial performance generally, and in relation to its UK construction business in particular,\u201d the FCA said.<\/span><\/p>\n

\u201cThe announcements did not reflect significant deteriorations in the expected financial performance of Carillion\u2019s UK construction business and the increasing financial risks associated with it.\u201d<\/span><\/p>\n

The FCA said that the three directors had \u201cacted recklessly and were knowingly concerned in Carillion\u2019s contraventions\u201d.<\/span><\/p>\n

It added that the directors were \u201ceach aware\u201d of Carillion\u2019s real financial position but \u201cdespite their awareness of these deteriorations and increasing risks, they also failed to make the board and the audit committee aware of them\u201d.<\/span><\/p>\n

Financial services giant KPMG received <\/span>fines of \u00a314.4m<\/span><\/a> and<\/span> \u00a321m<\/span><\/a> by the Financial Reporting Council for failures relating to its audit of Carillion. It also settled a \u00a31.3bn lawsuit with the Insolvency Service, which, as Carillion\u2019s liquidator, also alleged that the consultancy had been negligent in its audit.\u00a0<\/span><\/p>\n

According to Howson\u2019s LinkedIn profile, the former CEO is now based in Tampa, Florida, where he has been the president of a small energy tech company<\/span> since January 2024<\/span><\/a>. Khan is a self-employed consultant, according to his<\/span> LinkedIn<\/span><\/a> profile. Meanwhile, it is unclear whether Adam is in work or not.<\/span><\/p>\n

The FCA has not responded to a request for comment. The judiciary declined to comment.<\/span><\/p>\n

Howson, Adam and Khan have been approached for comment.<\/span><\/p>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Will Ing<\/p>\n","protected":false},"excerpt":{"rendered":"

A tribunal court has finally set a date to hear appeals by three former Carillion directors over their fines, totalling almost \u00a31m \u2013 three years after they were first lodged. The Financial Conduct Authority (FCA) issued penalties worth a combined \u00a3870,000 in June 2022 after concluding that the directors had \u201cacted recklessly\u201d by issuing \u201cmisleadingly<\/p>\n","protected":false},"author":1,"featured_media":864549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102379,848],"tags":[],"class_list":{"0":"post-864548","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-carillion","8":"category-finally"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/864548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=864548"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/864548\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/864549"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=864548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=864548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=864548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}