Latest news with #Oricom
Scotsman
a day ago
- Business
- Scotsman
Prevention is better than cure when it comes to dealing with corruption
Put measures in place to lessen the risk of financial crimes occurring, says Sally Clark Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Prison sentences were handed out in Glasgow last week to four men involved in a £6 million corruption and bribery investigation involving health boards across Scotland. This case, which underlines the importance of compliance and ensuring anti-financial crime prevention mechanisms are implemented and regularly monitored, exposed a series of fraudulently-awarded NHS contracts. Advertisement Hide Ad Advertisement Hide Ad Oricom Ltd, a company founded by Adam Sharoudi and Gavin Brown, secured deals to provide telecoms and video conferencing equipment to NHS trusts in Lothian, Grampian, Lanarkshire, Greater Glasgow & Clyde, and Ayrshire & Arran between 2010 and 2017. However, amid concerns about how the contracts were awarded, Oricom's offices were later raided by investigators including those from NHS Scotland Counter Fraud Services. CMS logo new The follow-up investigation found the company had been given 'commercially sensitive information' by former NHS employees Alan Hush and Gavin Cox. They received nearly £90,000 in cash and a range of other gifts, including luxury hotel stays, concert tickets, and holiday vouchers in return. The High Court heard how Hush helped Oricom land a number of business deals with the NHS including a £750,000 contract with NHS Lothian. Meanwhile, Cox helped the company secure contracts with NHS Lanarkshire. Overall, Hush was given £18,231 worth of cash bribes and gifts, while Cox received more than £70,000 of illicit rewards from the company. Advertisement Hide Ad Advertisement Hide Ad After being found guilty of a string of charges including bribery, corruption, fraud, and money laundering, Oricom founders Sharoudi and Brown were sentenced to eight and seven years' imprisonment respectively. Sally Clark is an Of Counsel and disputes resolution specialist, CMS Hush, who was telecommunications manager at NHS Lothian, then NHS Scotland video conferencing manager, was ordered to serve eight years while Cox, former head of IT and infrastructure at NHS Lanarkshire. received a six-year sentence. This case highlighted how basic procurement procedures were circumvented to ensure a company paying bribes was awarded contracts. This may be a familiar bribery tale, but is a strong reminder that putting in place avoidance measures to prevent corruption and other forms of financial crime is preferable to taking steps to deal with such violations. In this case, the police and NHS counter-fraud investigation began in 2015, and a decade-long journey culminated with a trial which heard 65 days of evidence. Advertisement Hide Ad Advertisement Hide Ad No business or organisation wants to face the potential legal costs, reputational damage, and prospect of immense disruption that accompanies a financial crime investigation. Those being investigated are typically required to provide materials under warrant, which includes the interrogation of computer systems by law enforcement agencies. Staff may also be required to provide witness statements and respond to ongoing queries from investigating authorities, all of which requires significant time and resource. Being involved in a law enforcement investigation can generate exceptional anxiety amongst staff members who are required to provide witness statements and give evidence in court. This also brings further business disruption with people being diverted from their core focus within a business or organisation. As this NHS case highlights, putting regularly monitored measures in place to prevent the prospect of financial crimes occurring is a much more preferable alternative to dealing with the fallout of failing to do so. The introduction of section 196 of the Economic Crime and Corporate Transparency Act 2023 should further underline this message – under this new provision, a business or organisation can be prosecuted for economic crimes that are perpetrated by senior managers who are on their staff.
Daily Record
3 days ago
- Business
- Daily Record
Firm at centre of NHS corruption scandal moves business to new company as directors jailed
Four men were jailed for a total of 29 years following a major investigation into the award of lucrative NHS contracts to Ayrshire-based telecommunications firm, Oricom. The firm at the centre of a £6m NHS corruption scandal is set to move its business to a new company linked to its jailed directors. Four men found guilty following a major investigation into the award of lucrative NHS contracts to an Ayrshire-based telecommunications firm were jailed for a total of 29 years on Thursday. Oricom directors Adam Sharoudi, 41, and Gavin Brown, 48, secured major deals with the illegal help of NHS telecoms chiefs Alan Hush, 68, and 60 year-old Gavin Cox. The probe was first revealed by the Daily Record after an NHS counter fraud team swooped on Oricom's offices in Irvine in 2015. Now a letter to customers from a current Oricom boss has revealed the service is to be managed by a company called Freestyle Communications Limited. Service Delivery Director David Ross said the change, set to take place from June 19, was 'part of a long-term plan to improve how we deliver your service'. Convicted directors Brown and Sharoudi were named on Companies House as having 'significant control' of Freestyle in May 2023, but filed a cessation in August last year. Prosecutors proved, during a mammoth three-month trial, that contracts for the supply and maintenance of telecoms equipment by Oricom broke rules on financial wrongdoing in the tendering process. Hush was jailed for eight years after being found guilty of nine charges. Cox was locked up for six years for the two jurors convicted him of. Sharoudi was also handed an eight year term having been convicted of seven charges. Brown was jailed for seven years for a total of six. Lord Arthurson said: "The reach and character of the corruption and, in particular, the corrupt relationship engaged by all of you was on a grand scale.' Hush was the telecommunications manager at NHS Lothian and then NHS Scotland video conferencing manager. Cox held the post of head of IT and infrastructure at NHS Lanarkshire. The pair abused their powers as 'public servants' to push deals through. One contract alone was worth £3.1m. In return, Hush got £18,231 of cash bungs and gifts, Cox a total of more than £70,000. All four men had denied the charges, spanning between 2010 and 2015, included bribery, corruption, fraud, theft as well as others under the Proceeds of Crime Act. In Oricom's letter to customers, Ross said the firm was 'moving to a dedicated telecoms management company focused solely on service delivery and support'. He said: 'Your contract terms, pricing, and service all remain unchanged. You'll continue to receive uninterrupted service. You'll still have access to the same support team under the new structure. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. 'Why are we making this change? By moving your account to Freestyle Communications, we're simplifying operations and placing service management in the hands of a team 100% focused on telecoms. 'Freestyle Communications is part of the same group and is fully regulated by Ofcom.' Current directors of Freestyle are named as Ross, Stephanie Brown and Simon Agnew. Brown and Sharoudi resigned as directors of Oricom earlier this month, following their convictions at the High Court in Glasgow. They have also been banned from being a company director for the next 10 years and will face proceeds of crime proceedings. Over 250 witnesses were also interviewed and tens of thousands of text messages and emails reviewed as part of the probe. Gordon Young, Head of NHS Scotland Counter Fraud Services it was a 'landmark conviction' of 'individuals who sought to exploit the NHS for personal gain'. We approached Oricom for comment.
Daily Mail
5 days ago
- Daily Mail
Jailed for 29 years, four men behind 'corrosive' campaign of corruption that drained NHS of millions
Four men behind a £6.5million campaign of corruption and bribery at health boards across Scotland have been jailed for a total of 29 years. Their crimes involved the awarding of lucrative NHS contracts to an Ayrshire telecoms firm set up in a garden shed. Jurors heard details of widespread corruption, including managers being bribed into awarding large contracts with gifts worth tens of thousands of pounds. Adam Sharoudi, 41, of Motherwell, and Gavin Brown, 48, of Prestwick in Ayrshire, ran Oricom Ltd - a firm which effectively started from a shed but went on to secure major deals. The pair were able to win the contracts with the help of NHS workers Alan Hush, 68, and 60-year-old Gavin Cox, who accepted lucrative payments and gifts. All four men denied the accusations but in April were found guilty following a three-month trial at the High Court in Glasgow. Hush was jailed for eight years after being found guilty of nine charges. Cox was locked up for six years for the two charges jurors convicted him of. Sharoudi was also handed an eight year term having been convicted of seven charges and Brown was jailed for seven years for a total of six. The charges spanning between 2010 and 2015 included bribery, corruption, fraud, theft as well as others under the Proceeds of Crime Act. One stated Sharoudi and Brown did 'acquire, use and possess' a total of £5,719,244 of 'criminal property' paid by NHS Lothian, NHS Grampian, NHS Lanarkshire, NHS Greater Glasgow and Clyde as well as NHS Ayrshire and Arran. Judge Lord Arthurson said: 'Such is the corrosive effect of corruption upon commercial and public life, individuals such as yourselves should expect to be dealt with robustly by the courts. 'The public should expect their fellow citizens should not seek to subvert public officials in their duties. 'Such officials should note that, succumbing to bribery, will result in the handing down of significant terms. 'The reach and character of the corruption and, in particular, the corrupt relationship engaged by all of you was on a grand scale.' The court heard how Hush, of Edinburgh, received handouts including hotel stays, concert tickets, meals and a laptop for his help in getting business for Oricom, including a £750,000 contract with NHS Lothian. Cox, of Glasgow, handed Oricom information to give them a 'commercial advantage' to secure business. His 'rewards' were said to have included thousands of pounds of Barrhead Travel holiday vouchers which he spent on trips to New York and Lanzarote. The four accused all gave evidence in the case which sat for 65 days - testimony described by the judge yesterday as 'self serving, arrogant and mendacious'. The court heard how all four maintained their innocence. Hush's lawyer Keith Stewart said the jury had concluded there was a 'corrupt relationship' between Hush and Oricom carried out in 'plain sight' and based on 'budgets hotels and discounted rail fares'. Gordon Martin, defending Cox, said he was 'ashamed at the findings of guilt' as he had been 'a public servant for 31 years and rightfully proud of that service'. Sharoudi's defence KC Brian McConnachie told the hearing the NHS work carried out by Oricom was 'necessary' and it was not a 'situation of job creation' for money. He said Sharoudi had overcome a number of issues growing up to gain a first class honours degree in maths and philosophy before helping build Oricom. Tony Graham KC, defending Brown, said he was someone who had 'worked every day since he left school' providing 'employment for many others over many years'. Sharoudi and Brown have also been banned from being a company director for the next 10 years. Following the hearing, Sineidin Corrins, Deputy Procurator Fiscal for Specialist Casework at the Crown Office and Procurator Fiscal Service (COPFS), said: 'This was a betrayal of public trust. 'These four men colluded to create a sophisticated criminal scheme. The public will rightly be shocked by the scale of their criminality. 'The scale of this offending against our public health service is particularly egregious.' She said the men will now face separate hearings under the Proceeds of Crime Act, adding: 'This case demonstrates clearly that those who indulge in corrupt practices for their own personal gain will be brought to book regardless of the time it takes to bring offenders to justice. 'The Proceeds of Crime proceedings that will follow demonstrate our ongoing commitment to ensuring that crime does not pay and that illicitly obtained funds are recovered where possible.'
Telegraph
5 days ago
- Telegraph
Four men jailed over £6m NHS fraud
Four men have been jailed for a total of 29 years after committing an 'outrageous' £6 million fraud against the Scottish NHS. Gavin Brown and Adam Sharoudi established an IT firm and used their connections with Gavin Cox and Alan Hush, senior health service employees, to obtain lucrative telecoms contracts, including one valued at more than £3 million. Their offences, which took place between 2010 and 2017, included bribery, corruption and other offences under the Proceeds of Crime Act. Hush and Sharoudi were additionally convicted of fraud. At the High Court in Glasgow on Thursday, Brown, 48, and Sharoudi, 41, were jailed for seven and eight years respectively, while Hush, 68, and Cox, 60, were jailed for eight and six years. Lord Arthurson said while sentencing that each of the men was 'self-serving, arrogant and mendacious', adding they had 'subverted public trust in NHS management'. A 16-week trial heard that Oricom, the IT firm, did 'acquire, use and possess' a total of £5,719,244 worth of 'criminal property' that was paid for by NHS Lothian, NHS Grampian, NHS Lanarkshire, NHS Greater Glasgow and Clyde as well as NHS Ayrshire and Arran. Luxurious handouts The firm was founded by Brown in a shed in Irvine, Ayrshire in 2008 and Sharoudi later joined as a director. Sharoudi became friends with Hush, who was telecommunications manager at NHS Lothian and then NHS Scotland video conferencing manager. Cox was head of IT and infrastructure at NHS Lanarkshire. Their crimes were uncovered by chance after the theft of two NHS-issued mobile phones, which led to thousands of text messages and emails being discovered on multiple laptops, computers and mobiles. In 2015, Oricom's offices were raided by investigators from NHS Scotland Counter Fraud Services. An investigation found Hush and Cox gave Oricom 'commercially sensitive information' in return for £88,000 worth of cash, gifts and holidays. Hush was handed Eurostar train tickets, stays at the Troy and Re Hotels in London, a laptop, an iPad, meals and concert tickets to see Paul Simon, Rufus Wainwright and Patti Smith for his part in helping Oricom secure the contracts. Cox's 'rewards' were said to include hospitality at the Scottish Grand National at Ayr, a night at the Loch Green Hotel in Troon and a meal at Elliots in Prestwick, as well as holiday vouchers that funded his trips to New York and Lanzarote. He also denied ever getting a series of cash handouts from Oricom. In total, Hush was given £18,231 of cash handouts and gifts, while Cox was handed more than £70,000. 'Manipulated' the system Gordon Young, head of NHS Scotland counter-fraud services, described their actions as 'outrageous'. 'They were in a position of trust within the NHS and they have manipulated the procurement process for their own benefit,' he said. 'We hear every single day from politicians and from people that work in the service about how hard folk are working to try and keep things going. 'The vast majority of NHS workers are honest, hardworking people who have only got their patients' and their services' best interest at heart, but these individuals have taken advantage of the system for their own benefit. Union leaders, however, said the case highlighted the lack of resources for countering NHS fraud. Matt McLaughlin, Unison Scotland's head of health, said cuts to backroom services and the use of private companies in the NHS and the wider public sector 'present opportunities for people to behave in this way'. 'I think it's absolutely right for the public to be angry and concerned,' he said.
The Independent
5 days ago
- The Independent
Four men jailed over ‘egregious' NHS bribery and corruption offences
Four men convicted of bribery and corrupt practices over the awarding of NHS contracts worth £6 million have been jailed. Alan Hush, 68, Adam Sharoudi, 41, Gavin Brown, 48, and Gavin Cox, 60, were convicted following a trial at the High Court in Glasgow which followed an investigation at health boards across Scotland. The offences, which took place between 2010 and 2017, included bribery, corruption, and other offences under the Proceeds of Crime Act. Hush and Sharoudi were additionally convicted of charges of fraud. Sharoudi and Brown, directors of Ayrshire-based telecommunications firm Oricom Ltd, were jailed for eight years and seven years respectively when they were sentenced at the court on Thursday, the Crown Office and Procurator Fiscal Service (COPFS) said. Hush, who was telecommunications manager at NHS Lothian, was sentenced to eight years in jail, while Cox, who was head of IT and infrastructure at NHS Lanarkshire, was jailed for six years. In a sentencing statement later published online, Lord Arthurson said: 'The public are entitled to expect that their fellow citizens will not seek to subvert public officials in the diligent exercise of their duties, and public officials in their turn should know that succumbing to bribery will result in the handing down by the court of immediate and significant custodial terms. 'The reach and character of the corruption and in particular the corrupt relationships engaged in by all of you, when considered as a whole, was on a grand scale.' The trial at the High Court in Glasgow lasted 65 days. Sineidin Corrins, deputy procurator fiscal for specialist casework at COPFS, said: 'This is an outstanding result for justice in Scotland. 'As prosecutors, we have shown an unwavering commitment to pursuing and investigating this matter. This was a betrayal of public trust. 'These four men colluded to create a sophisticated criminal scheme. The public will rightly be shocked by the scale of their criminality. 'The scale of this offending against our public health service is particularly egregious. 'The systematic abuse of position by public officials, who accepted inappropriate benefits including cash, holidays and entertainment in exchange for contract advantages, strikes at the heart of public trust. 'It serves as a reminder that procurement processes exist to ensure fair competition and value for public money. When these processes are corrupted, all of society bears the cost. 'The prosecutorial journey has been complex and demanding. It required forensic examination of thousands of documents, hundreds of witness statements, and detailed financial analyses to establish the full extent of this criminal activity. 'The digital evidence, particularly text messages and emails exchanged between the accused, proved pivotal in exposing the true nature of these arrangements. 'This was a meticulous investigation and one which reflects the enduring partnership working between specialist Crown Office prosecutors, NHS Counter Fraud Services and Police Scotland, who worked tirelessly over many years. 'Their unflinching dedication to serving the interests of justice, regardless of complexity or duration, deserves recognition.' The four men will now be subject to confiscation action under proceeds of crime legislation to recover monies illegally obtained. Brown and Sharoudi were also banned from being company directors for 10 years. Gordon Young, head of NHSScotland Counter Fraud Services at NHS National Services Scotland, said: 'This is a landmark conviction for fraud, bribery and corruption of individuals who sought to exploit the NHS for personal gain. 'This successful prosecution reaffirms NHS Scotland's commitment to safeguarding vital funds for patient care as intended by the taxpayer. 'These sentences send a strong and unequivocal message that fraud, bribery and corruption within the NHS will not be tolerated, and we will act decisively against anyone who threatens its integrity.'
