News Article
23 April 2009
A Department of Health (DH) staff member and a Preston shopkeeper, who conspired to defraud the DH of nearly £50,000 by abusing the Welfare Food Scheme, have received prison sentences at Leeds Crown Court (22 April), after an investigation by NHS Counter Fraud .
Sanjive Dutta, who was employed by DH, was sentenced to 12 months imprisonment having agreed to conceal and wipe out debts owed by shopkeeper Ishrat Ehsan to DH, in return for payment. Ehsan received 21 months imprisonment. Both men had pleaded guilty to conspiracy to defraud at Leeds Crown Court on 23 March 09.
Dutta allowed Ehsan to keep an accidental overpayment made to him of £48,978 in return for a cut of the proceeds. The money paid to Ehsan had been for milk tokens that customers on welfare benefits had legitimately presented.
A computer error in October 2005 had caused the DH to reimburse some retailers for more than they were entitled to. DH recovered most of the overpayments by the end of 2005, after which its Accounts Receivable Section in Leeds was tasked to recover the outstanding final amounts.
To disguise their crime, which was detected in June 2007, Dutta had falsely credited Ehsan’s account with payments from other companies. These payments were first held in a suspense account and then applied in stages between September and December 2006, followed by a final small debit note to bring Ehsan’s debts to zero.
Ehsan originally owed £57,140.01 to DH. In September 2006 he made one genuine repayment of £8,162.01, leaving the balance of £48,978 (the total amount defrauded). After being summonsed to Court, Ehsan repaid it in full to DH in June 2008. Dutta was dismissed from his employment at DH in November 2008.
The investigation by NHS Counter Fraud established that Dutta and Ehsan were in regular contact.
Alan Stewart, Operational Fraud Manager for NHS Counter Fraud, said: “This sentence is a stern reminder to the minority of people who, like Dutta and Ehsan, think they can get away with defrauding the Department of Health.”
The Judge told Dutta: "You were a trusted employee. You compromised your position, breaching the trust that was expected of you. You behaved in a dishonest manner and no doubt in the expectation of receiving a kickback."
To Ehsan he said: "You have pleaded guilty to an offence of conspiracy to defraud in the region of £50,000. You entered a relatively late plea to this offence. It is a serious offence, the theft of public money. You have a proven dishonest track record and you had most to gain by this criminal enterprise."
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For more information contact James Robertson at the NHS CF press office on 020 7895 4524/ 4523. Out of hours mobile 07717 851 926
Further information on NHS CF can be found at www.nhsbsa.nhs.uk/CounterFraud.aspx
Notes to Editors
1. NHS Counter Fraud (NHS CF) - a division of the NHS Business Services Authority (NHSBSA) - was established to tackle fraud and corruption throughout the NHS and DH whether it involves professionals, staff, patients or contractors. It aims to create a lasting anti-fraud culture.
2. Around 319 professionally-trained and accredited Local Counter Fraud Specialists are in place covering every health body in England and Wales. They are supported nationally and regionally by NHS CF. NHS CF investigations produced potential savings to the NHS of £7,565,014 during 2007-08.
3. In 2007-08 the NHS CF successfully prosecuted 57 criminal cases with a 96% success rate.
4. To report any incident of suspected fraud in the NHS, please call the Fraud and Corruption Reporting Line on 0800 028 40 60.