A BOOK chronicling the real reasons behind the sensational collapse of a multi-million pound business empire which began in York has been written by its co-founder.

Mike Kenney, former chairman of Ward Evans, the UK’s fastest-growing independent general insurance broking firm started in Dunnington, gives his detailed account in The Broker Boys.

It documents the crash of his company, which generated £70 million turnover and bombed out with £3.58 million debts in December, 2002.

Administrators at the time found evidence of “excessive directors’ salaries and lavish spending”.

This was said to have included –

• A £250,000 yacht moored in Majorca at a cost of about £40,000 a year – for both personal and corporate use.

• Ten season tickets at Leeds United FC with catering costs amounting to £40,000 plus chauffeuring services.

• A £2,383 per month London flat with a requirement that it be stocked with champagne.

• Helicopter trips to transport staff to functions such as Grand Prix race meetings.

• “Pool” company cars at a cost of £75,000 per year without designated drivers.

An Inland Revenue investigation showed that certain directors were paid a bonus of £160,000 to cover an Inland Revenue assessment and assorted fines; given travel expenses for a “stag” event to the yacht in Majorca; had their TV licence and phone bills paid; given a family holiday in Majorca; and had leased cars for family members, totalling £830 per month.

In his book, Mr Kenney, who in that final year was on a salary of £634,140 agrees that the lifestyle was lavish, but tackles questions about malpractice or criminal intent head on.

He said: “The police were never involved. If anything the book is a great management training story for business students to unpick. There was a catalogue of errors and no single cause for the downfall.”

The Broker Boys, written entirely on a Blackberry, documents the firm’s dramatic downfall, intermingled with stories of partying with celebrities, fine dining, and splurging cash on yachts and cars.

Mr Kenney who now owns an accountancy business in Yorkshire, denied that his book, which is offering ten per cent of proceeds to children’s cancer charities, is a vanity publication.

It is, he argued, “an account of what not to do in business, something which those wanting to start their own firm may learn from”.

He said: “Former Ward Evans employees have gone from strength to strength, often showing great leadership in their own businesses. Ward Evans was a great training ground for current Yorkshire business leaders and entrepreneurs, something which I am very proud of.”