Today at Manchester Crown Court, James Frauts and Christopher Lynch were jailed for 40 months and 22 months respectively for their roles in defrauding Resource Partners PLC, a London finance company. James Frauts was the managing director and Christopher Lynch the administration manager of Insight Ltd, a company based in Manchester that provided specialist healthcare services to young people and adults suffering from Autism Spectrum Disorder.
The investigation was conducted by the Serious Fraud Office following a referral from the Greater Manchester Police. It was established that over 170 false invoices for £1.2 million were claimed for care services that were not provided. Five local authorities were also affected by the fraud.
James Frauts (DOB 13/11/1947) who had pleaded guilty in September 2010 to fraudulent trading, false accounting and conspiracy to defraud received the following sentence:-
- 40 months imprisonment
- Disqualification from acting as a Director for seven years
- Deportation to serve the rest of his sentence in Canada
Christopher Lynch (DOB 16/04/1951) who was convicted on 5 October 2010 of conspiracy to defraud in September 2009 received the following sentence:-
- 22 months imprisonment, suspended for 2 years
- £10,000 to be paid towards the costs of prosecution
Sentencing Lynch and Frauts today, HHJ Steiger commented: "The fraud put at risk the vulnerable and sick." He said: that their conduct exposed others to risk of suspicion and added that: "The fraud put at risk those working at Insight Ltd."
Welcoming the sentence, Chief Executive Phillippa Williamson said: "I am pleased that justice has been done. James Frauts and Christopher Lynch put at risk some of the most vulnerable people in society. By fiddling the books they deprived councils of money that should have been spent on disadvantaged people in the community. Seeking justice for victims is at the heart of what we do in the SFO - I welcome this result."
Further information about these proceedings can be seen in the press release issued on 5 October 2010
Notes for editors:
- The Serious Fraud Office is a government department responsible for investigating and prosecuting serious and complex fraud. The SFO is headed by the Director (Richard Alderman) who exercises powers under the superintendence of the Attorney General. These powers are derived from the Criminal Justice Act (1987).
Serious Fraud Office, Elm House, 10-16 Elm Street, London, WC1X 0BJ
Press Office tel: 020 7239 7045 or mobile: 07584 218 694 or 07966 558 903
Main switchboard tel: 020 7239 7272
press.office@sfo.gsi.gov.uk - or via - www.sfo.gov.uk
