Sam McGee, a 39-year-old Barclays employee and former treasurer of the Ravenscroft Re-Build Co-operative in Kirkby, was sentenced to four years and eight months in prison for defrauding his neighbours of £266,735.77 to fund an online roulette addiction. The fraud took place between October 2022 and October 2024, leaving the co-op's funds completely depleted and the community account in the red.
Breach of Trust in a Close-Knit Community
McGee, who grew up in the community and lived on St Andrews View, was entrusted as treasurer of the housing co-op, which managed 26 affordable rented properties. His mother served as the co-op's secretary. The co-op, operating since the 1980s, relied on tenant payments into a Lloyds community account, which were then distributed into separate funds for ongoing repairs and a sinking fund for major damage. At the time McGee became treasurer in late 2019, the community account held £7,720, the repairs fund £38,530, and the sinking fund nearly £112,000. By November 2024, all funds were exhausted.
How the Fraud Was Carried Out
Initially, fund movements required two signatures from the committee. In 2023, McGee used his position at Barclays to change this to a single signature, enabling him to transfer money without oversight. He intercepted letters from Lloyds sent to his mother's house, which were intended for the co-op, and provided false audit documents to committee meetings after the 2021-2022 audit. The court heard that Lloyds wrote to the co-op about missing payments, but McGee intercepted the correspondence.
Victim Impact: Fear and Uncertainty
Around 25 co-op members attended the sentencing. In victim impact statements, they described the devastating consequences. One victim said McGee's actions were "deeply cruel" and he had "stolen our security, stability and trust in our home and the co-op." Another, who was bedbound after returning from hospital, said she feared losing her home. A woman with stage four terminal cancer was forced to return to work due to rent uncertainties. One statement highlighted that McGee was "part of our community, trusted to safeguard" but his "betrayal" created "a sense of fear and uncertainty about the future of our homes."
Gambling Addiction and Confession
McGee admitted his crimes in a letter to Lloyds in November 2024, stating his gambling addiction began during the early stages of the COVID-19 pandemic and "took over me." He wrote, "I want to reiterate how sorry I am. There's no money left." His mother had taken out three loans to cover his gambling, unaware he was also embezzling co-op funds. McGee, who had no previous convictions, pleaded guilty to fraud by false representation in April.
Sentencing and Aftermath
Recorder Eric Lamb told McGee his conduct had "destroyed" the co-op, noting that "those in poor health were worrying about the security of their tenancy" and "those coping with illness were going back to work." He emphasised that McGee was gambling with money that was "the security of your neighbours." McGee was sentenced to four years and eight months. The court heard he had no means to repay the money, so the Crown Prosecution Service did not pursue proceeds of crime proceedings. As McGee was led to the cells, some co-op members clapped, while others remarked the sentence was "nothing" and he would be out in "no time."
Regulatory Investigation
The Regulator of Social Housing launched an investigation into Ravenscroft Re-Build Co-Operative in July 2024, finding in January 2025 that the co-op faced "significant liquidity issues, putting social homes at risk" and its control framework "exposed it to the potential for fraud and material loss of public funds."
