Finance director jailed after gambling-fueled £1.9M fraud at Birkenhead firm

A finance director who swindled a business based in Birkenhead, England, out of nearly £1.9 million ($2.4 million) has been sentenced to prison after his “predilection for gambling got out of hand.”

Allan Wood, 59, from Saltersgate in Ellesmere Port, appeared at Liverpool Crown Court on Tuesday (December 23) after admitting to four counts of fraud by abuse of position linked to his role at Cammell Laird.

The case first came to light in January 2021, when the allegations were reported to Merseyside Police, triggering an investigation by their Economic Crime Team.

As detectives dug into the company’s finances, they uncovered the scale of the fraud. Over more than a decade, Wood siphoned off an eye-watering amount of money from his employer.

Finance director Allan Wood moved money into accounts for gambling and personal spending

Between 2007 and 2008 alone, he dishonestly redirected company funds for his own benefit, moving more than £1.5 million ($2 million) into personal accounts and using company money to pay off his personal credit card bills.

On top of that, Wood signed off on more than £315,000 ($426,000) in what was described as “unauthorised corporate entertainment,” spending company cash on himself, friends, and family. This included charging the firm for tickets to the Champions League final and football season tickets. According to the Liverpool Echo, when questioned later, he even came up with a far-fetched claim that the spending was connected to suspected spying within the company.

Altogether, his actions left Cammell Laird out of pocket by £1,870,243.

At the time the fraud was taking place, the company was already under serious financial pressure. Board members had to put in large sums of their own money just to keep things afloat, while staff faced the very real threat of layoffs and strike action.

Wood was sentenced to five years and three months in prison.

Detective Constable Laura Madden, who led the investigation, said: “This fraud placed a business under significant financial pressure, causing distress and worry to all employees. Let’s not also forget the impact it would have had on their families as many feared for their jobs.

“This impact was clearly lost on Wood and he will now be left to consider the full consequences of his actions while he serves time in prison.

“Fraud can and does devastate individuals and businesses, and thankfully Wood has now been prevented from causing any more harm.”

Featured image: Merseyside Police

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