A WOMAN took advantage of her position overseeing rent accounts for a housing provider to steal more than £22,000 to repay debts to a loan shark accrued through gambling.

Kay McManus accessed dormant accounts of ex-tenants of the County Durham Housing Group to falsely inflate balances, where there was “nil” credit.

Durham Crown Court heard she made refund requests, purporting to be from the tenants.

Paul Caulfield, prosecuting, said the apparently genuine requests were then authorised by senior personnel and paid into joint accounts newly opened by McManus, to avoid suspicion.

Mr Caulfield said a group fraud investigator discovered multiple altered rent accounts and identified significant amounts of fraudulent emails supposedly sent by tenants requesting refunds.

It came to light in late September 2018 and the defendant was called into a disciplinary hearing at which she was suspended pending a full investigation.

Mr Caulfield said she admitted her wrong doing at a further hearing, at which point she was suspected of taking £12,000, but, “to her credit” she indicated it was likely to be around £20,000.

McManus was arrested in April 2019 and, when interviewed, she tendered a pre-prepared statement amounting to a confession.

She claimed her family found itself in financial difficulty arising from a Department for Work and Pensions’ demand for repayment, in respect of an overpayment of benefits due to her acquiring “a significant” gambling debt, causing her to fall into debt.

McManus said it led her to borrowing money from loan sharks who were seeking to enforce repayment with threats to her family.

Mr Caulfield added that the day prior to the hearing McManus arranged, through solicitors, repayment of the full £22,501 taken from the housing group, now known as, ‘believe’.

A probation report, read to the court, confirmed that she had been able to fully compensate the housing group from an inheritance after family bereavements.

The court also heard she suffers health problems including type-two diabetes, severe migraine and high blood pressure.

Matthew Hopkins, in mitigation, said the defendant has had a gambling habit since the age of 16, so turned to loan sharks to meet the cost of her addiction, but found it difficult to meet the “extortionate” interest rates, and was subject to threats after building up arrears of more than £5,000.

The 41-year-old defendant, of Cranberry Square, Hylton Castle, Sunderland, admitted fraud by abuse of position of trust.

Judge James Adkin said it merited a custodial sentence of 16 months, but, given her, “genuine remorse”, lack of risk to the public, and the fact she has paid back the full amount, he could suspend it for two years.

But she must attend 15 probation-run rehabilitation activity days and observe a six-month 7pm to 7am home curfew.