The lessons to be learned from Polly Peck

Polly Peck’s financial troubles were not just caused by fraud and theft. They were also rooted in a very simple accounting trick that investors at the time should have spotted – something we can all still learn from today, says Tim Bennett.

Former tycoon and Polly Peck chief executive Asil Nadir wasrecently sentenced for stealing nearly £29m from the company he set up and listed.

I'd like to look at the story from an investment angle. Beyond the lurid headlines, it's useful to understand that Polly Peck's financial troubles were not just caused by fraud and theft. They were also rooted in a very simple accounting trick that investors at the time should have spotted and it's something we can all still learn from today.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.