Former NHS manager jailed for £123,000 fraud

A former NHS manager from Dudley has been jailed today after pleading guilty to a fraud that diverted more than £123,000 from the NHS.

Two other individuals were also sentenced for their role in the fraud.

Between August 2022 and December 2023, Alec Gandy, a 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, whose details were logged as a ‘physician’s assistant’ and a ‘paramedic’.

He 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 Trust identified suspected fraudulent activity, they alerted the NHS Counter Fraud Authority, which led the investigation after Gandy left his position. 

Gandy (42 of Kidderminster), was sentenced to two and a half years in jail at Wolverhampton Crown Court after previously pleading guilty to fraud by abuse of position. 

Lane (44, of Evesham) and Wright (38, of Kidderminster) pleaded guilty to money laundering offences. Lane was sentenced to 12 months in prison, suspended for 18 months, plus ordered to carry out 200 hours unpaid work. Wright was handed an 18 month community order, plus a requirement to carry out 25 days of rehabilitation activity.

The court heard in a victim statement from the Trust’s Director of Finance that the money could have been used to improve patient care, for example 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 or,
•    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.

Ben Reid, Specialist Prosecutor from the Crown Prosecution Service 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.

“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 Trust, but time and money had to be spent on an internal investigation.

"The sentences handed down today reflect the gravity of these offences against our public services. The CPS will continue to work closely with the NHS Counter Fraud Authority to ensure that those who seek to defraud the NHS are brought to justice."

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

Ben Harrison, Head of Operations at NHS Counter Fraud Authority, said: “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.

“This was a calculated scheme that diverted significant public funds away from frontline patient care. Our investigation, with the support of West Mercia Police and the subsequent prosecution by colleagues at the Crown Prosecution Service revealed a deliberate abuse of position, with Gandy exploiting his senior role to manipulate NHS payment systems for personal gain

“The NHS Counter Fraud Authority remains firmly committed to protecting vital NHS resources and we will continue to pursue those who seek to defraud our health service. 

“We encourage anyone with suspicions of fraud against the NHS to report it through our confidential reporting channels.”