Financial Director Jailed for £1.87m Fraud Against Struggling Shipyard

A former financial director who siphoned nearly £1.9 million from a historic Birkenhead shipyard while the company battled for survival has been sentenced to more than five years in prison, in a case that highlights the devastating impact of senior-level corporate fraud.

Allan Wood, 59, of Ellesmere Port, appeared at Liverpool Crown Court on December 23 after pleading guilty to four counts of fraud by abuse of position during his time at Cammell Laird, one of Britain's most famous shipbuilding companies.

Background and Context

The fraud occurred between 2007 and 2008, a period of significant financial difficulty for Cammell Laird, which has operated on the Merseyside waterfront since the 1820s. During this time, the company's board of directors were forced to inject substantial personal funds to keep the business afloat, while employees faced the threat of redundancies and industrial action.

According to court records, Wood exploited his position of trust during this vulnerable period, systematically diverting company resources for personal benefit while the shipyard struggled to maintain operations and preserve jobs.

Key Figures and Entities

Wood, who served as financial director, abused his authority over the company's financial systems to transfer £1.5 million into personal accounts held in his name. Additionally, he authorised approximately £315,000 for what investigators termed 'unauthorised corporate entertainment,' with the funds used for himself, friends, and family rather than legitimate business purposes.

The combined theft totaled £1,870,243, creating significant cash flow problems for the engineering and shipbuilding firm, which has been responsible for constructing and maintaining vessels for the Royal Navy and commercial customers for two centuries.

Legal and Financial Mechanisms

The investigation, conducted by Merseyside Police's Economic Crime Team following a report in January 2021, revealed how Wood exploited internal control weaknesses to execute his scheme over a sustained period. The fraud involved direct transfers to personal accounts and the misuse of company credit facilities.

Detective Constable Laura Madden, who led the investigation, noted that the abuse of position was systematic rather than opportunistic, requiring deliberate planning and execution over an extended timeframe.

International Implications and Policy Response

While this case involved a domestic company, it underscores ongoing concerns about executive-level fraud and the adequacy of financial controls within major British corporations. The sentencing comes amid increased scrutiny of corporate governance following several high-profile financial crimes in the UK.

The case illustrates how fraud by senior executives can exacerbate existing business challenges, potentially endangering jobs and undermining economic stability in regions dependent on major employers like shipyards.

Sources

This report is based on court documents from Liverpool Crown Court, statements from Merseyside Police Economic Crime Team, and information about the proceedings. Fraud can be reported to UK authorities through the Action Fraud website or by contacting local police services.