SGI hits director with misconduct charges

Silicon Graphics (SGI) is taking legal action against its UK customer services director after alleged claims over financial irregularities surrounding third party support contracts.

The hardware vendor has served a High Court writ against Barrie Charlton, alleging a breach of fiduciary duties between 1994 and this year, following an investigation into SGI's dealings with support service company Hi Tech Support. Charlton had been employed at SGI for seven and a half years.

Indications of misappropriation of funds from contracts handled by Aylesbury-based third party service partner Hi Tech Support are said to have emerged from the investigations. Andrew Jenkins, managing director of Hi Tech Support, has also been quoted as a defendant in the writ. Jenkins is understood to be Charlton's brother-in-law.

The vendor was also taking legal action against Hi Tech Support, whose contract has now been terminated. Until 30 April, Hi Tech provided support for customers of Silicon Graphics desktop products. A separate writ against a Richard Marsden was served relating to the case, alleging conspiracy between Marsden, Charlton and Jenkins to defraud SGI.

Jenkins said: 'I can make no comment about it whatsoever. Talk to Silicon Graphics.'

According to the writ, SGI was claiming damages for fraud and payment received by Charlton from Jenkins 'by way of bribe and/or secret profit.'

Chris Calvert, marketing manager at SGI, would not discuss the affair in detail, but confirmed that ties with Hi Tech had been severed. 'We terminated relations with Hi Tech in the last week of April,' he said.

However, the company has taken the majority of former Hi Tech Support employees that were providing services on the vendor's behalf into the Silicon Graphics fold. 'The situation is that the complete service is now internally delivered,' Calvert said.

Charlton was unavailable for comment.