The former finance director of medical recruitment company Healthcare Locums Diane Jarvis has effectively been banned from working as an accountant for 10 years.

Jarvis, who resigned from HCL in 2011 after the discovery of “accounting irregularities” at the company, agreed a settlement with the Financial Reporting Council (FRC), the disciplinary body for accountants in the UK.

According to the FRC’s website, the terms of settlement agreed with Jarvis are: a recommended period of exclusion from the ICAEW [Institute of Chartered Accountants in England and Wales] of 10 years, and a sum of £25k to be paid by Jarvis as a contribution to the executive counsel’s costs.

The FRC says the settlement was reached after Jarvis admitted that during the course of 2010 and early 2011 she breached the body’s “fundamental principle of integrity, by dishonestly manipulating HCL’s management accounts to increase its [HCL’s] apparent profitability”. These accounts had been presented by Jarvis as an accurate representation of HCL’s performance.   

The FRC says that Jarvis admitted that her conduct “fell significantly short of the standards to be expected of a member of the ICAEW”. 

The outcome of the disciplinary hearing relates back to 2010 and early 2011, when following the discovery of “accounting irregularities” at HCL, Jarvis was suspended pending an internal investigation, along with executive chairman and company founder Kate Bleasdale. Subsequently, Jarvis resigned from the company in March 2011, while Bleasdale was fired.  

During a subsequent unsuccessful £12m Employment Tribunal for unfair dismissal, Bleasdale sought to blame Jarvis for what had happened, and accused her of fraud.

Paul George, FRC executive director of conduct, says: “The significant period of exclusion recommended in this case reflects the gravity of the misconduct and sends out a clear message to accountants in business of the importance of acting honestly and with integrity. The substantial sanction will also serve to protect the public and contribute to the maintenance of public confidence in the accountancy profession.”

Recruiter attempted to contact Jarvis for comment, but as we went to press these efforts were unsuccessful.

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