Legal News

A family who stole £2.8 million from an employer has been sentenced to a total of seven years and four months in prison.

Shelagh Smith, Roy Smith and their daughter Karen Lewis stole £2.8 million from Glen Dimplex Home Appliances. Shelagh Smith made false accounting records to conceal a large number of transfers made over a five-year period, between 2005 and 2010.

The court heard that she employed techniques to hide the transactions, fraudulently transferring money to her family's bank account, while sending duplicate transfers of the same amounts to legitimate business suppliers.

Shelagh Smith's daughter, Karen Lewis, received 38 payments totalling £677,000 over the five-year period.

Lewis initially said that she thought that the money came from compensation for a workplace accident her father had suffered – however, later she admitted that she knew or suspected that the money was the proceeds of crime.

Roy Smith initially denied knowing anything about the fraud, saying that his wife had complete control of the family finances and had led him to believe the family was comfortably off.

Shelagh Smith was employed by the company (under an earlier name and management) from September 1975 until her dismissal in 2010 – her husband Roy Smith had been employed by the same company since 1971.

Shelagh Smith was charged with false accounting contrary to Section 17(1)(a) Theft Act 1968 – between 7 June 2005 and 14 October 2010, Smith dishonestly falsified bank statements and records for personal gain.

The total amount taken across 163 transactions was £2,811,904.30. The court sentenced her to 40 months’ imprisonment.

Roy Smith was charged with using criminal property – namely cash – during the same period, knowing or suspecting it to be the proceeds of crime contrary to Section 329(b) Proceeds of Crime Act 2002. He was sentenced to 27 months’ imprisonment.

Karen Lewis was charged with using criminal property – namely cash – during the same period, knowing or suspecting it to be the proceeds of crime contrary to Section 329(b) Proceeds of Crime Act 2002.

Lewis was sentenced to 21 months’ imprisonment.

Shelagh Smith pleaded guilty on 11 June 2015. Roy Smith and Karen Lewis pleaded guilty on 16 May 2016 to using the proceeds of Shelagh Smith’s crime.

Specialist prosecutor at the Crown Prosecution Service, Justine Allan, said:

“The Smiths were trusted employees – Shelagh Smith used her position and access to the company's accounts to make illegal payments to her own bank account and the personal accounts of family members.

“She covered up these thefts amounting to over £2.8 million over a number of years.

“On the strength of the Crown's case, Shelagh Smith entered a guilty plea and – although initially denying involvement – Roy Smith and Karen Lewis later changed their pleas to guilty.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise at any stage of a charge involving false accounting, financial fraud, tax and VAT evasion, breaches of the Insolvency Act, and white collar crime.

There are Duncan Lewis offices nationwide – and a specialist business crime solicitor can advise at the start of an investigation and before charges are brought.

Duncan Lewis can also liaise with investigating authorities, including SFO, FCA, HMRC, BIS, Insolvency Service and City of London Police.

Duncan Lewis is a leading provider of Legal Aid criminal defence services – and can also advise on Confiscation Orders under the Proceeds of Crime Act (POCA).

For expert legal advice on financial crime charges, call Duncan Lewis business crime solicitors on 0333 772 0409.

For 24/7 help at a police station, call the Duncan Lewis Solicitors 24-Hour Emergency Helpline on 0333 772 0607.