Charity Forced to Close After Finance Officer Embezzles Funds to Support Gambling Addiction
Background of the Charity and Embezzlement Discovery
Gateshead Access Panel, a charitable organization in North East England dedicated to assisting disabled individuals and their caregivers with funding applications, training, and managing carers’ payments and taxes, was compelled to shut down after significant financial theft was uncovered. The charity’s finance officer, S.H., repeatedly misappropriated funds to fuel his gambling addiction, severely impacting the charity’s operations.
Details of the Theft and Initial Discovery
At Newcastle Crown Court, it was revealed that S.H., a 40-year-old man from Chester-le-Street, County Durham, had been with the charity since 2011. Initially responsible for payroll and accounts, suspicions of missing money arose in 2016. Investigations showed he had embezzled over �GBP 32,000 (approximately $43,600) to support his gambling habit.
Charity’s Attempt to Manage the Situation
The charity’s leadership, hoping for rehabilitation, allowed S.H. to remain employed under supervision and with the condition that he repay the stolen funds with family assistance. However, within a year, the charity faced financial shortfalls affecting carers’ payments. S.H. initially blamed banking issues but later admitted to failing in billing clients properly.
Further Misconduct and Discovery
Even after his direct access to finances was revoked, S.H. found ways to divert more money. In August 2017, a coworker noticed him gambling on his phone during work hours. Subsequent checks revealed he had linked the charity’s bank account to his personal PayPal, siphoning additional funds undetected.
Admission and Legal Proceedings
Fearing exposure, S.H. voluntarily reported himself to Whickham Police Station, admitting to the theft. By this point, he had stolen a total of nearly �GBP 121,000 (about $162,800), of which he repaid approximately �GBP 42,000 (around $56,700).
Impact on the Charity and Affected Individuals
The theft had devastating consequences. Vulnerable carers and disabled clients, including S.H.’s close friends, were left in substantial debt to tax authorities. The charity’s manager described the incident as catastrophic, directly leading to the organization’s closure in 2018.
Medical Diagnoses and Sentencing
In court, it was disclosed that S.H. has been diagnosed with autism spectrum disorder and compulsive gambling disorder. The presiding judge condemned the shortcomings in oversight and was surprised that S.H. had not been removed immediately after the initial discoveries. S.H. was sentenced to 18 months imprisonment, suspended for 12 months, along with 150 hours of community service. Further proceedings will address the repayment of stolen funds.
