Accountant Harold Hyde allegedly transferred $37k of client’s money into dead mother’s accounts

Harold Hyde has been temporarily suspended while the Institute of Chartered Accountants investigates claims against him. Photo / 123rf

An accountant who allegedly transferred $37,000 of his client’s money into his own and his dead mother’s accounts has been temporarily suspended.

Wellington accountant Harold Hyde didn’t engage with the committee of the New Zealand Institute of Chartered Accountants (NZICA) despite numerous attempts to contact him, the decision released by the organisation states.

The NZICA said it had temporarily suspended Hyde’s registration while it investigated claims he took thousands of dollars from a client as well as acquiring an $11,800 Covid-19 business loan without his client’s permission.

The complainant, who isn’t named in the decision, notified the Institute in March last year of her concerns.

She said Hyde had been helping her manage her finances and rental property while she was living and working overseas.

In February last year she discovered that in May 2021 a Covid-19 government business loan of $11,800 had been paid into the bank account of her company, which she had not applied for or known about.

The rental property was her company’s only asset and business activity, so it had no basis for seeking or receiving such a loan, she said.

Around the same time the complainant claimed Hyde made numerous payments from her company’s bank account into his own and his mother’s personal accounts for a year from February 2021.

The transfers totalled $37,000 and were without her authority or knowledge, she claimed.

According to the decision Hyde was yet to repay any of the money to the complainant and in his initial responses to her referred to it being spent on furniture, transport and storage but did not provide details.

Hyde allegedly acknowledged the $11,800 government loan, telling the woman it was an “emergency fund” to help get her home from overseas where she lived and worked, and that it was interest-free until May 2023.

However, in his communication with the NZICA Hyde denied any knowledge of the loan.

His response to the institute concerning the funds paid into his and his mother’s bank accounts was that this was a personal arrangement with the complainant and not part of his work as an accountant.

The institute said despite numerous attempts to contact Hyde he stopped responding in August last year.

The Herald attempted to contact Hyde and had no response.

The NZICA’s Disciplinary Tribunal last week issued a public notice suspending Hyde from the roll of Chartered Accountants until further notice.

It said the evidence suggested Hyde had misappropriated money from his client’s account.

“The number of known purchases by the member on the complainant’s behalf and her other costs do not explain the large number of payments into his and his mother’s personal accounts,” the decision stated.

“It is particularly concerning that payments into his mother’s account continued for many months after her death in June 2021.

“There is also evidence that he wrongly and without authority applied for [and] received an $11,800 Covid-19 business loan.”

The institute said Hyde’s lack of response to it and the complainant was inadequate and added to its concern about his conduct.

“Not only does this lend support to the inference that the complainant’s money has been misappropriated, it also breaches the member’s obligation to co-operate in the institute’s investigation of the complaint.”