A senior NHS manager has been sent to prison after orchestrating a fraud scheme that siphoned more than £120,000 from his health trust, with the vast majority lost to a gambling addiction.
How the Fraudulent Scheme Worked
Alec Gandy, a 42-year-old senior operational manager at the Dudley Integrated Health and Care NHS Trust, abused his position of authority to create a complex fraud. The Crown Prosecution Service (CPS) detailed how Gandy set up fake temporary worker accounts for his friend, Matthew Lane, and his ex-wife, Kaylee Wright.
He fraudulently listed Lane as a physician’s assistant and Wright as a paramedic, roles which did not exist. Over a period of 16 months, starting in August 2022, Gandy authorised invoices totalling over £123,000 to be paid into these accounts. A large portion of this money was then transferred back to Gandy himself.
Of the stolen public funds, more than £92,000 was gambled away by Gandy. He also diverted a further £12,000 to support his own business interests.
Court Sentencing and Impact on the NHS
The fraud was uncovered by the Dudley trust after Gandy had left his post, prompting an investigation by the NHS Counter Fraud Authority. At Wolverhampton Crown Court on Friday 16 January 2026, Gandy, from Kidderminster, was sentenced to two-and-a-half years in prison after pleading guilty to fraud by abuse of position.
A victim impact statement from the trust’s finance director was heard in court. It stressed that the stolen money could have made a significant difference to patient care, equating to the annual salaries of four nursing associates.
His accomplices also faced justice. Matthew Lane, 44, of Evesham, and Kaylee Wright, 38, of Kidderminster, both pleaded guilty to money laundering. Lane received a 12-month suspended sentence for 18 months and 200 hours of unpaid work. Wright was given an 18-month community order with 25 days of rehabilitation activity.
Condemnation from Prosecutors and Authorities
Ben Reid, a CPS specialist prosecutor, strongly condemned the crime. "This case represents a serious breach of trust that diverted vital NHS funds meant for patient care," he stated. "Gandy abused his position of responsibility as a public servant, while Lane and Wright knowingly participated in the scheme."
Reid emphasised that fraud is never a victimless crime, causing direct financial loss and consuming valuable resources through lengthy investigations. The CPS confirmed it will pursue confiscation proceedings against Gandy to reclaim the stolen money.
Ben Harrison, head of operations at the NHS Counter Fraud Authority, underscored the importance of the conviction. "This outcome endorses the value of our robust and objective approach to ensuring that anyone who attempts to defraud the NHS is brought to justice," he said. "This was a calculated scheme that diverted significant public funds away from frontline patient care."
