Former National Health Service manager jailed for £123,000 fraud

Between August 2022 and December 2023, Gandy (former senior operational manager at Dudley Integrated Health and Care NHS Trust) created two fictitious temporary workers using the details of his friend Matthew Lane and his ex-wife Kaylee Wright. Their respective details were logged as a ‘physician’s assistant’ and a ‘paramedic’.

Gandy then authorised fraudulent invoices totalling £123,090, which were paid to his associates, who subsequently transferred significant portions of the money back to him.

Once the NHS Trust identified suspected fraudulent activity, officials alerted the NHS Counter Fraud Authority, which then led on the investigation after Gandy left his position.

At Wolverhampton Crown Court, Gandy (aged 42 of Kidderminster) was sentenced to two-and-a-half years in jail after previously pleading guilty to fraud by abuse of position. Lane (aged 44 of Evesham) and Wright (aged 38 of Kidderminster) pleaded guilty to money laundering offences. Lane was sentenced to 12 months in prison, suspended for 18 months, and ordered to carry out 200 hours of unpaid work. Wright was handed an 18-month community order and a requirement to carry out 25 days of rehabilitation activity.

In a victim statement from the NHS Trust’s director of finance, Wolverhampton Crown Court heard that the money could have been used to improve patient care, for example by providing additional roles within GP practices to supply more healthcare appointments for patients.

The statement outlined that the funds could have paid for four nursing associates for a year, two community paramedics for a year or two clinical pharmacists for a year.

Financial analysis revealed that Gandy spent more than £92,000 of the fraudulently obtained money on gambling activities and transferred a further £12,000 to his own businesses.

Serious breach of trust 

Ben Reid, specialist prosecutor from the Crown Prosecution Service (CPS), said: “This case represents a serious breach of trust that diverted vital NHS funds meant for patient care. Gandy abused his position of responsibility as a public servant, while Lane and Wright knowingly participated in the scheme to facilitate this fraud.”

Reid continued: “Fraud is not victimless and, when such crimes are committed, they have a range of impacts. In this case, not only was money defrauded from the NHS Trust, but time and money had to be spent on an internal investigation.”

Further, Reid stated: “The sentences handed down reflect the gravity of these offences against our public services. The CPS will continue to work closely with the NHS Counter Fraud Authority in order to ensure that those who seek to defraud the NHS are brought to justice.”

The CPS will pursue confiscation proceedings against the defendant in order to remove any available criminal benefits gained from this enterprise.

Ben Harrison, head of operations at the NHS Counter Fraud Authority, explained: “This outcome endorses the value of our robust and objective approach towards ensuring that anyone who attempts to defraud the NHS is brought to justice. This was a calculated scheme that diverted significant public funds away from front line patient care. Our investigation, with the support of West Mercia Police, and the subsequent prosecution by colleagues at the CPS revealed a deliberate abuse of position, with Gandy exploiting his senior role to manipulate NHS payment systems for personal gain.”

In addition, Harrison noted: “The NHS Counter Fraud Authority remains firmly committed to protecting vital NHS resources. We will continue to pursue those who seek to defraud our National Health Service. We encourage anyone with suspicions of fraud against the NHS to report it through our confidential reporting channels.”