Sussex social club faced bankruptcy after administrator stole thousands of pounds; culprit ordered to pay back £147,000

Sussex Police said the Hailsham Memorial Institute, ‘which plays a key role in the local community’, was ‘facing bankruptcy’ after the crime.

A spokesperson added: “Jeanette Gardner abused her position as an employee to steal thousands of pounds from its accounts.

“Gardner, 66, of Meadow Road, Hailsham, had worked her way up from bar staff to a position where she controlled the club’s finances, but thanks to the diligence of club members and an extensive investigation by police, Gardner, who denied wrongdoing, was held accountable and has now been ordered to pay back some of the stolen money.

“On Monday (March 31), recorder David Brock, at Brighton Combined Court, awarded asset recovery of £147,000 to the club; £8,875 to the Department of Work and Pensions after Gardner misappropriated staff pension contributions; and ordered Gardner to pay £25,000 court costs.”

Investigator George Shannon said this was a ‘protracted investigation’, starting in 2019, and it was ‘frustrated at every step by Gardner’s dishonesty and manipulation’.

He added: “She fought this case to the bitter end.

“Gardner was convicted at Lewes Crown Court in 2023 to 24 months’ imprisonment, suspended for 24 months and finally now, compensation has been awarded.

"This has been positively received, with the club now thriving under new stewardship.

“This woman’s greed saw no limits. She used the money in part to fund a lavish lifestyle, which included foreign holidays, West End shows and group outings.

"Due to a lack of paperwork and receipts kept by Gardner, it was impossible to know the full extent of the funds stolen, but I am delighted the Economic Crime Unit investigation led to court orders to repay some of the lost money.”

Police said Gardner was dismissed from the club in 2019 after an internal investigation. The club was established in 1920 in memory of a local soldier who lost his life during the First World War.

“A three-year investigation ensued which uncovered large scale frauds, thefts, and abuse of position offences,” the police spokesperson added.

“The investigation found Gardner had stolen from and made fraudulent claims against the club. These included falsifying her employment contracts to pay herself a higher salary, giving herself pay rises without authorisation, withholding payments to HMRC, false accounting, and laundering £26,000 of the stolen money out of the country to India.

“She falsified weekly accounts to steal cash from the social club and would often include personal purchases in receipts claimed back from the club. Payments were also received into her bank account for events and services provided by HMI.”

Police said Gardner failed to pass on money raised at HMI fundraising events to charities, ‘including approximately £3,000’ to the male cancer charity Orchid.

They added: “When asked to account for the money that was raised, Gardner insisted she’d made the payment but could not find the receipts to prove it. When confronted by the members she tried to falsify the receipts and staged a fake discovery of the ‘lost’ cash to cover her tracks.

“During the investigation, Gardner also brazenly made fraudulent claims for Universal Credit which were uncovered by police.

“The investigation resulted in Gardner being charged with 11 offences.”

During her trial, she pleaded guilty to fraud by abuse of position but maintained her innocence in relation to all the other charges, police said.

Police said Gardner was found guilty at Lewes Crown Court – in October 2023 – of eight of the 11 charges against her. These were four counts of fraud by abuse of position; fraud by false representation; theft; transferring criminal property; and fraud by failing to disclose information.

She was found not guilty of three charges – two counts of fraud by abuse of position; and one count of theft, police said.