Manchester firm issues High Court claim alleging £500,000 fraud by two former employees

A design and build firm based in Manchester is suing two former staff members over a suspected fraud amounting to more than £500,000

CDS, design and build specialists to the catering and hospitality industry and based in Trafford Park, has issued legal proceedings against the two men and their partners.

David Budge, managing director of CDS, has appointed JMW Solicitors to handle the claim after being tipped off about the alleged fraud by a whistle-blower.

JMW Solicitors has now issued a High Court claim against eight parties in total, including the two former employees for allegedly conspiring with other businesses to defraud CDS of profits dating as far back as 2005.

The majority of the alleged fraud involved a catering equipment installer which is also a party to the claim.

Since being appointed last August, JMW Solicitors has liaised with CDS’ suppliers and their solicitors with the aim of uncovering an accurate picture of the scale and depth of the alleged fraud.

Both of the employees who are facing legal action are no longer employed by CDS.

Both men’s spouses have also been included in the claim by CDS.

Although not parties to the alleged fraud, CDS is claiming that a bank account of one of the spouses was used for payment of illicit funds by suppliers.

David Budge said: “CDS’s legal claim is that these former employees have deprived the business of its profits dating as far back as 2005.

“Having worked closely with both employees and suppliers for a considerable amount of time, CDS has been left shocked and alarmed by the information obtained.”

CDS is a successful design and build company offering design, cost management, supply, building and installation services to the catering and hospitality sector.

A well-respected company, it counts numerous household name brands among its clients