A senior NHS manager who orchestrated a sophisticated fraud to steal more than £123,000 from a Midlands health trust has been sent to prison. Alec Gandy, 43, abused his position to create fake invoices and siphon public money, much of which was used to fund his gambling habit.
The Fraudulent Scheme Uncovered
Gandy worked as a senior operational manager at the now-dissolved Dudley Integrated Health and Care NHS Trust between April 2021 and May 2023. His role involved managing temporary staff and authorising payments, a position of significant trust which he exploited.
Prosecutor Holly Kilbey told Wolverhampton Crown Court that Gandy set up a fraudulent system involving his ex-wife, Kaylee Wright, 38, and a friend, former Royal Marine Matthew Lane, 44. He added them to the trust's system as "fictitious" workers, listing Lane as a physician's assistant and Wright as a paramedic.
Between August 2022 and May 2023, 23 fake invoices were submitted in Lane's name, while 12 invoices were created for Wright between October 2022 and April 2023. The payments were sent directly to their personal bank accounts for work they never performed. A portion of this money was then transferred back to Gandy.
How the Fraud Was Discovered
The fraud only came to light after Gandy left his job on 31 May 2023. He had failed to hand over his invoicing responsibilities as planned and also neglected to return his work-issued laptop and mobile phone for two months after his departure.
During a routine financial forecasting process, the trust reviewed its invoices and discovered that neither Lane nor Wright had ever been legitimate employees. An investigation revealed the full scale of the theft: £123,090 was stolen in total. Gandy personally benefited to the tune of £72,815, Lane received £37,160, and Wright got £13,115. None of the money has been recovered.
Financial analysis showed Gandy spent £92,268.99 with gambling companies during the period, receiving £85,420.17 back from them.
Sentencing and Impact on Public Services
On Friday, 16 January 2026, Judge Laura Hobson jailed Gandy, of Housman Way, Cleobury Mortimer, for two and a half years after he admitted fraud by abuse of position. The judge stated that the stolen money, intended for public health services, was "not to line his pockets." She emphasised the profound sense of betrayal felt by his former colleagues and the financial impact on the public purse.
The court heard the sum could have funded four nursing associates, two community paramedics, or two clinical pharmacists for a full year. Prosecutor Kilbey stressed that losing such a significant amount from the budget would have had a tangible impact on community services.
Lane and Wright, who both admitted money laundering, avoided immediate custody. Lane, now of Peggs Way, Basingstoke, received a 12-month suspended sentence and 200 hours of unpaid work. Wright, of Larks Rise, Cleobury Mortimer, was given an 18-month community order with rehabilitation activity. A Proceeds of Crime Act hearing to attempt to reclaim the lost funds is expected later this year.
