Senior NHS Manager Sentenced for Elaborate £123,000 Fraud
A former senior operational manager at the Dudley Integrated Health and Care NHS Trust has been handed a significant prison sentence after orchestrating a sophisticated fraud scheme that diverted more than £123,000 of public funds away from patient care services.
Systematic Abuse of Position
Alec Gandy, 43, exploited his position of authority within the NHS trust to establish a fraudulent payment system that funnelled money through accomplices before returning substantial portions to his personal accounts. The Cleobury Mortimer resident created fictitious contractor profiles for his ex-wife Kaylee Wright and friend Matthew Lane, authorising invoices for services that were never actually delivered to the healthcare organisation.
Financial analysis revealed that Gandy spent over £92,000 of the stolen NHS funds on gambling activities, while transferring an additional £12,000 directly to his own business accounts. The elaborate scheme remained undetected until after Gandy left his position, when routine auditing processes identified suspicious financial activities that prompted a full investigation.
Impact on Healthcare Services
In a powerful statement presented to the court, the trust's director of finance outlined exactly how the stolen funds could have been utilised to enhance patient care within the community. The substantial sum could have financed multiple healthcare positions for an entire year, including:
- Four nursing associates to support clinical teams
- Two community paramedics for emergency response
- Two clinical pharmacists for medication management
- Additional roles within GP practices to increase appointment availability
The diverted money represented a significant loss to healthcare provision in the region, with resources that should have supported frontline services instead being misappropriated for personal gain.
Legal Consequences and Sentencing
Gandy pleaded guilty to fraud by abuse of position and received a two-and-a-half-year prison sentence during proceedings at court on Friday, January 16. His accomplices faced separate charges for their involvement in the money laundering operation.
Matthew Lane, 44, now residing in Basingstoke, received a 12-month suspended sentence with 200 hours of unpaid work requirement. Kaylee Wright, 38, of Cleobury Mortimer, was given an 18-month community order that includes 25 days of rehabilitation activities.
Official Responses to the Fraud
Ben Harrison, head of operations at the NHS Counter Fraud Authority, emphasised the importance of their investigative work: "This outcome demonstrates our commitment to ensuring anyone attempting to defraud the NHS faces justice. Our investigation uncovered a deliberate abuse of position where Gandy manipulated payment systems for personal gain."
Specialist prosecutor Ben Reid from the Crown Prosecution Service added: "This case represents a serious breach of trust that diverted vital NHS funds meant for patient care. Fraud against public services is never victimless, and these sentences reflect the gravity of offences against our healthcare system."
The NHS Counter Fraud Authority continues to encourage confidential reporting of any suspicious activities through their dedicated channels, reinforcing their ongoing commitment to protecting NHS resources from financial exploitation.
