Chester recovers funds 'misappropriated' by former CEO Richard Thomas

Chester racecourse's parent company has said it has successfully recovered funds "misappropriated" by former chief executive Richard Thomas, who was sacked in May for misuse of company resources.

The news came in Chester Race Company's (CRC) annual report for 2020, which was lodged with Companies House this week.

Thomas joined Chester as chief executive in 2000 and was regarded as the driving force behind the success of the CRC, which also owns Bangor and took on the long-term operating contract of Musselburgh last summer.

Speculation about his future grew after he was absent from the course for its prestigious May meeting this year, and a fortnight later his dismissal was confirmed.

In his statement in the report, CRC chairman Ian O'Doherty described the circumstances that led to the termination of Thomas's employment as "extremely disappointing".

He said: "Following a thorough investigation by forensic accountants it was confirmed that Mr Thomas had misused company resources to support personal projects.

"We are pleased that our internal processes identified the matter and ensured that we were able to address it fairly and with appropriate speed. The company has successfully pursued Mr Thomas for the return of the amounts misappropriated."

Former Chester chief executive Richard Thomas was dismissed in MayCredit: Chester racecourse

A note in the accounts said the board had taken legal action to recover the sums involved, which "were not insignificant", but the matter had not "put the company's finances at risk".

O'Doherty added: "As shareholders would expect, we have taken the opportunity to review our practices and determine what lessons can be learned from what has happened. We have carried out an in-depth review and are taking action to further strengthen our controls and improve our workplace culture."

Former Aintree managing director and Ascot chief executive Charles Barnett had acted as interim chief executive following Thomas's departure, but last month it was announced Louise Stewart would be taking over the role permanently in the new year.

Despite the impact of the Covid-19 pandemic on Chester, which lost its May meeting in 2020, the company made a profit before tax, including impairments and revaluations, of £900,000 in 2020, compared to £4.1 million the previous year.

Read more on this subject:

Louise Stewart named new chief executive at Chester

Chester chief executive Richard Thomas dismissed due to 'misuse' of resources

Chester chief executive Richard Thomas will not preside over track's May meeting

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