A BUSINESS forensics team led by a former police officer has helped bring two North-East company bosses to justice.

The team at Newcastle-based chartered accountants UNW headed up by Phil Loveday, provided evidential packages to police for two separate clients and fraud victims, Houghton-le-Spring-based recycled food packaging company Re Pet and South Tyneside conveyor belt maintainer and vulcaniser Millennium Conveyor Services (MCS).

Evidence provided by UNW was used by Northumbria Police to help ensure financial director John Forrest was sentenced to three years and 8 months jail time on Friday (May 22) for stealing almost £650,000 from Re Pet and £350,000 in VAT and that engineer Steven Wallace was sentenced to 23 months prison, suspended for 18 months, for scamming £50,000 out of MCS.

The pair of guilty verdicts, delivered at Newcastle Crown Court this month, followed months of painstaking background work prepared for the companies by the Tyneside firm.

UNW forensics services team, head former Northumbria police officer Mr Loveday said: “Convictions for complex frauds of this type, involving highly trusted members of senior management, are not necessarily easy to secure because the police don't always have the time and fraud squad resources have been severely reduced due to recent cuts.

“Having previously worked for Northumbria Police for 30 years, 10 years in the fraud squad, what I can now do at UNW for businesses is quite unique, pulling together all the preparatory investigative work and providing that as an evidential package to the police.

“When people in positions of complete trust betray the shareholders, directors and staff like this, it it is vital they are brought to justice and I am delighted UNW has been able to help in securing both of these convictions on behalf of the private sector.”

Northumbria Police's DCI Paul Bent said: “Since 2014, a private company UNW have assisted police with these investigations and this approach has allowed the criminal investigations to be conducted expeditiously.”

The court heard how financial director John Forrest, 48, pocketed £646,996 from Re Pet to pay for holidays, private schools fees, hotels and furniture while the company headed towards administration, and fraudulently claimed more than £350,000 in VAT from the taxpayer for the firm.

While his two fellow directors worked hard to make the business a success, dad-of-two Forrest of Hawthorn Road, Gosforth, was siphoning away money to keep for himself.

Forrest was jailed last week for 44 months after pleading guilty to theft and fraud charges and banned from being a company director for 10 years.

Sentencing him, Judge Robert Adams said: “On the company credit card there were over 100 payments (worth £163,895) clearly identified as being for your own benefit for legal bills, school fees, holidays, various fixtures bought by you. That reflects the blatant personal gain.

“The loss to the business in total is £646,996. The business has gone into administration with the obvious effect on other directors and employees.

“You have benefited by the way of holidays, children’s school fees being paid, which you otherwise could not afford, and you placed the needs of your family and yourself over your duties as a director to shareholders.”

The previous week (May 15) engineer Wallace was found guilty of putting his company’s future at risk when he scammed them out of £50,000 by ordering large quantities of stainless steel that MCS didn't need.

The project manager father-of-two then used his contacts in the industry to sell on the steel, pocketing the proceeds.

Wallace, of Norg Street, High Barnes, Sunderland, narrowly avoided a jail term after admitting one count of fraud.

Wallace enlisted the help of friend William Lowery, 52, of St Oswald’s Avenue, Walker, who worked for one of his suppliers, to help transport the metal. He was given a 10 month prison sentence, suspended for 12 months, after he also admitted one count of fraud for his part in the con.

Sentencing Wallace, Judge Adams said: “These materials were diverted elsewhere and what profit you received is not entirely clear but the sums involved were significant and the losses caused to MCS were significant.”

The court heard Wallace’s scam had added to MCS’s financial troubles and had reduced their credibility in the trade, which had resulted in a loss of staff.

Wallace was also ordered to do 150 hours of unpaid work and must adhere to a curfew on Fridays, Saturdays and Sundays.