A CLOTHING supplier’s new financial officer drained the company’s accounts by more than £41,000 within months of taking over the job, a court heard.

Graeme Chapman made 54 payments to two personal accounts he set up, purporting they were to pay suppliers to online clothing company, Devilwear, of Peterlee, County Durham, between April and August, last year.

Durham Crown Court heard Chapman was appointed in March 2015 and initially appeared an “impressive” performer, promising to grow the company’s turnover and profit and set up new software.

Although popular, within months he began taking more time off, leaving early and failing to account for complaints that suppliers had not received payments for deliveries.

Although he sought to reassure company founder Karl Smith it was beneficial to make late payments, the complaints mounted and despite his “popularity” among the workforce, Mr Smith “reluctantly” sacked him, in early September.

A fortnight later a check of company accounts revealed the extent of Chapman’s activities.

Mr Baker said it emerged he had removed £41,404, so police were informed and when interviewed Chapman made no reply, while the two accounts he set up were drained, so no money could be refunded to Devilwear.

His personal expenditure included payment for a holiday in New York.

In a victim statement Mr Smith said he worked hard to develop the company over ten years and Chapman’s actions caused, “irreparable damage”.

Suppliers would not give them credit and so Mr Smith had to put up his own house, and another, as collateral to take out loans.

Profits were down 40-per cent in the year up to Christmas 2015, the company suffered stock deficiencies, as previous stockists refused to supply them due to outstanding debts, and thousands of pounds of bank charges had to be paid due to missed bank returns.

Mr Baker said four staff members, “effectively paid the price”, as their hours were reduced, while Mr Smith also suffered health and domestic difficulties.

Chapman initially denied fraud by abuse of position, but failed to turn up at court for his trial and was arrested in Scotland, while “at large”.

But the 52-year-old, of Broadmayne Avenue, Sunderland, subsequently changed his plea to ‘guilty’.

Stephen Constantine said Chapman, of previous good character, was left heavily in debt since being made redundant from a previous job, in 2009.

“Out of despair he began this six months of dishonesty,” said Mr Constantine, who added that the defendant then, “buried his head in the sand”.

Jailing him for 33 months, Judge Simon Hickey said it was, “planned, sophisticated theft on a grand scale”, almost sending his employers to the wall.