A former NHS senior manager has been sentenced to two and a half years in prison for orchestrating a fraud that siphoned more than £123,000 from the health service he was employed to serve.
The Fraudulent Scheme Uncovered
Alec Gandy, 42, a former Senior Operational Manager at the Dudley Integrated Health and Care Trust (DIHCT) in the West Midlands, pleaded guilty to fraud by abuse of position. The court heard how Gandy, who started his role in April 2021, hatched a plan within a year to defraud the NHS.
He manipulated the trust's accounting system to set up his ex-wife, Kaylee Wright, 38, and a friend, Matthew Lane, 43, as fake employees. Wright was falsely registered as a 'paramedic' and Lane as a 'physician's assistant'. Gandy then invoiced the trust for their non-existent services.
Over a nine-month period between August 2022 and December 2023, the trust paid out a total of £123,090 based on these fraudulent invoices. Lane received 23 separate payments, while Wright, the mother of Gandy's two children, received 12 payments over six months.
Where the Stolen Money Went
Prosecutor Holly Kilbey detailed how Gandy created fictitious invoices, one of which claimed Wright had worked five 10-hour shifts as a paramedic, including a home visit, for £2,050. Investigators found that significant portions of the money were funnelled back to Gandy by his co-defendants.
Of the fraudulently obtained funds, Gandy spent more than £92,000 on gambling and transferred a further £12,000 into a business he had founded. The court heard he personally benefited by £72,815, while Lane and Wright accrued £37,160 and £13,115 respectively.
In a victim statement, the Trust's Director of Finance emphasised the impact, stating the stolen sum could have paid for two community paramedics for a year, four nursing associates, or two clinical pharmacists.
Sentencing and Condemnation
Her Honour Judge Laura Hobson, sentencing at Wolverhampton Crown Court, told Gandy: "The NHS is under more financial pressure than ever before. As someone working as a senior manager in that organisation, that would have been impressed upon you. But seeing an opportunity you set up your co-defendants as fake employees and stole £123,000 which should have been spent on health services to benefit the community."
She added that the money had come "from the pockets of tax-payers". The fraud was discovered in late 2023 when a new deputy director of finance ordered a reorganisation of roles. After Gandy left his job, the trust found no one had heard of the fake employees, prompting an investigation by the NHS Counter Fraud Authority, supported by West Mercia Police.
Lane, 44, a transport manager from Evesham, and Wright, a professional dog walker from Kidderminster, pleaded guilty to money laundering offences. Lane received a 12-month prison sentence, suspended for 18 months, plus 200 hours of unpaid work. Wright was given an 18-month community order and must complete 25 days of rehabilitation activity. The judge said Wright was the least culpable and had been 'taken advantage of' by Gandy.
Commitment to Protecting NHS Funds
Ben Reid, a Specialist Prosecutor for the Crown Prosecution Service (CPS), stated: "This case represents a serious breach of trust that diverted vital NHS funds meant for patient care. Fraud is not victimless... The sentences handed down today reflect the gravity of these offences against our public services." The CPS confirmed it will pursue confiscation proceedings against Gandy.
Ben Harrison, Head of Operations at the NHS Counter Fraud Authority, said: "This was a calculated scheme that diverted significant public funds away from frontline patient care... The NHS Counter Fraud Authority remains firmly committed to protecting vital NHS resources." He encouraged anyone with suspicions of fraud against the NHS to report it through their confidential channels.
