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THE PARTY'S OVER FOR CHEATING ORGANISER: COURT BATTLE EXPOSES OVERCHARGING AT 800,000 EVENT AT ELTON JOHN'S HOME
by Rajeev Syal
The Observer
November 23, 2008
England
THE EXTRAVAGANT spending of Britain's rich and famous has been
revealed in the High Court, where the organiser of some of Britain's
most lavish parties was shown to be a cheat who regularly overcharged
his stellar list of clients.
Matthew James had become one of Britain's most famous fixers with a
series of outlandish events. He sent giraffes and zebras to wander
among guests at a garden party thrown by Elton John, recreated an
airport to celebrate Kevin Spacey's term at the Old Vic, and held
an open-air dinner for Stella McCartney in a forest lit with 2,000
candles.
But his award-winning company, DNA Productions (Europe), has been wound
up after a High Court battle over the cost of an £ 800,000 party in
the grounds of John's mansion. The judge ruled that the company had
grossly overcharged one client and routinely concealed the true costs
of events to others.
James came to prominence in 2001 after organising the White Tie
and Tiara Ball in the grounds of John's 37-acre pile in Windsor,
Berkshire. Over four years, he organised the annual charity event
attended by guests including Puff Daddy, Michael Caine and Ronnie Wood
with a variety of glittering themes. At one, based on an 18th-century
Fragonard painting of a girl on a swing, staff wore powdered wigs and
Swarovski created a secret crystal garden in the woods. In 2005 James
entertained hundreds of guests with a menagerie of safari animals.
His company went bust after he was ordered to pay £ 100,000 to
Armenian-born property tycoon Rafi Manoukian by the High Court. Mr
Justice Evans-Lombe found that James had launched a 'campaign of
concealment' over the cost of a joint birthday and christening party
that was held by Manoukian at John's home. Guests, including David
and Victoria Beckham, dined in an £ 80,000 marquee.
Manoukian, who with his brother Bob is believed to be worth more than
£ 250m, had expected DNA to charge a 12.5 per cent management fee
and take commissions from suppliers of up to £ 16,000 for the lavish
party. But when he received the full £ 827,761 bill, he believed that
the company had been unfair in raising costs and had failed to pass
on discounts offered by suppliers.
His suspicions were confirmed when an assistant at DNA accidentally
sent a list detailing the real costs of supplies and services to
his office. Manoukian, 52, refused to pay the full bill. James took
his case to the High Court demanding an outstanding payment of over
£ 200,000.
Documents emerged in court showing the full scale of the
'impropriety'. James and a former employee of DNA admitted that
the company had a policy of concealing suppliers' discounts from
all their clients. Evidence showed that James had taken at least £
50,000 in discounts from Manoukian's party which he had not passed
on to his client.
One email, from James's assistant and event producer Victoria Smith
to a supplier, said: 'When you do quote, could you also just include
10 per cent commission to us hidden in the quote? We have to show
the client all our invoices which is why we need the written quote
and also the commission included.'
In another email to a supplier, Smith wrote: 'As discussed, attached
is a breakdown of how I need your quote laid out in order to show
Manoukian - so we can then get deposit [sic] from him! Where the
costs are higher, it's because we have marked them up - your quote
should still show these as I have quoted to Manoukian but allowing
for a bit more commission for DNA. Does that make sense?!'
The judge said: 'Matthew James accepted it was DNA's practice
to conceal from its clients that it was receiving commissions or
discounts from some of its suppliers in addition to an event management
fee. . . It was Matthew James's evidence that DNA's practice was not
to record offers of commission or discounts from suppliers in writing,
as far as possible, and correspondence referring to such offers or
their payment was routinely deleted from DNA's books and records.'
The judgment revealed that DNA went into voluntary liquidation last
June with debts of £ 389,892. The company's staff have also been laid
off. James could not be contacted last week.
--Boundary_(ID_fJHRaboL4m4hRh4tCkMBEw)--
by Rajeev Syal
The Observer
November 23, 2008
England
THE EXTRAVAGANT spending of Britain's rich and famous has been
revealed in the High Court, where the organiser of some of Britain's
most lavish parties was shown to be a cheat who regularly overcharged
his stellar list of clients.
Matthew James had become one of Britain's most famous fixers with a
series of outlandish events. He sent giraffes and zebras to wander
among guests at a garden party thrown by Elton John, recreated an
airport to celebrate Kevin Spacey's term at the Old Vic, and held
an open-air dinner for Stella McCartney in a forest lit with 2,000
candles.
But his award-winning company, DNA Productions (Europe), has been wound
up after a High Court battle over the cost of an £ 800,000 party in
the grounds of John's mansion. The judge ruled that the company had
grossly overcharged one client and routinely concealed the true costs
of events to others.
James came to prominence in 2001 after organising the White Tie
and Tiara Ball in the grounds of John's 37-acre pile in Windsor,
Berkshire. Over four years, he organised the annual charity event
attended by guests including Puff Daddy, Michael Caine and Ronnie Wood
with a variety of glittering themes. At one, based on an 18th-century
Fragonard painting of a girl on a swing, staff wore powdered wigs and
Swarovski created a secret crystal garden in the woods. In 2005 James
entertained hundreds of guests with a menagerie of safari animals.
His company went bust after he was ordered to pay £ 100,000 to
Armenian-born property tycoon Rafi Manoukian by the High Court. Mr
Justice Evans-Lombe found that James had launched a 'campaign of
concealment' over the cost of a joint birthday and christening party
that was held by Manoukian at John's home. Guests, including David
and Victoria Beckham, dined in an £ 80,000 marquee.
Manoukian, who with his brother Bob is believed to be worth more than
£ 250m, had expected DNA to charge a 12.5 per cent management fee
and take commissions from suppliers of up to £ 16,000 for the lavish
party. But when he received the full £ 827,761 bill, he believed that
the company had been unfair in raising costs and had failed to pass
on discounts offered by suppliers.
His suspicions were confirmed when an assistant at DNA accidentally
sent a list detailing the real costs of supplies and services to
his office. Manoukian, 52, refused to pay the full bill. James took
his case to the High Court demanding an outstanding payment of over
£ 200,000.
Documents emerged in court showing the full scale of the
'impropriety'. James and a former employee of DNA admitted that
the company had a policy of concealing suppliers' discounts from
all their clients. Evidence showed that James had taken at least £
50,000 in discounts from Manoukian's party which he had not passed
on to his client.
One email, from James's assistant and event producer Victoria Smith
to a supplier, said: 'When you do quote, could you also just include
10 per cent commission to us hidden in the quote? We have to show
the client all our invoices which is why we need the written quote
and also the commission included.'
In another email to a supplier, Smith wrote: 'As discussed, attached
is a breakdown of how I need your quote laid out in order to show
Manoukian - so we can then get deposit [sic] from him! Where the
costs are higher, it's because we have marked them up - your quote
should still show these as I have quoted to Manoukian but allowing
for a bit more commission for DNA. Does that make sense?!'
The judge said: 'Matthew James accepted it was DNA's practice
to conceal from its clients that it was receiving commissions or
discounts from some of its suppliers in addition to an event management
fee. . . It was Matthew James's evidence that DNA's practice was not
to record offers of commission or discounts from suppliers in writing,
as far as possible, and correspondence referring to such offers or
their payment was routinely deleted from DNA's books and records.'
The judgment revealed that DNA went into voluntary liquidation last
June with debts of £ 389,892. The company's staff have also been laid
off. James could not be contacted last week.
--Boundary_(ID_fJHRaboL4m4hRh4tCkMBEw)--