Devon farming charity left reeling after £200,000 fraud conviction
Report by Duncan Williams for Pulman's Weekly News
A former treasurer who abused her position of trust to steal more than £200,000 from a long-established Devon charity over a nine-year period has been convicted of fraud.
Geraldine Coates, 59, was found guilty at Exeter Crown Court of dishonestly abusing her position as treasurer of the Honiton and District Agricultural Association between April 2009 and August 2018. She is due to be sentenced later this month and has been warned by the trial judge that the offence is likely to result in an immediate custodial sentence.
The court heard that Coates, who ran an accountancy business in Honiton while serving as the charity’s treasurer, gradually gained control of the organisation’s finances, including its accounts, cheque books and financial records.
Police say she used that trusted position to transfer charity funds for her own benefit, including payments towards personal expenses such as credit card bills and holidays.
Detective Constable Alan Findlay, the officer in charge of the investigation, said: “So over a sort of nine-year period from 2009 to 2018, she basically siphoned off funds from a charity.”
The fraud first came to light in 2018 after an unrelated fraud affecting the charity prompted members to examine its finances more closely.
“So Geraldine Coates was caught because there was a fraud that took place in 2018 that was not related,” said DC Findlay.
“When that happened, the charity then looked at other transactions and they were absolutely horrified to discover the level of fraudulent supplier payments that had taken place.”
According to police, concerns were initially reported by the Honiton and District Agricultural Association through Action Fraud, now known as Report Fraud, before being passed to Devon and Cornwall Police.
Investigators say the case highlighted the dangers of allowing one individual unchecked control over an organisation’s finances.
“The level of trust they’d given Geraldine Coates was based around her position... they believed she was qualified as a bookkeeper,” DC Findlay said.
“There were times when it was queried what she was doing, but she would come up with reasons why something was happening, or floor them with some sort of technical stuff to do with bookkeeping.”
Detectives believe that trust enabled the offending to continue for years without being uncovered.
“I think what would happen is possibly that is the way some of these things happen,” said DC Findlay.
“You start, you take some money, think you’re going to pay it back maybe, never do, realise you’ve got full control, you’ve been given the trust of the organisation and she’s played on that, then just carried on, going further and further.”
The investigation uncovered evidence that Coates attempted to explain suspicious transactions when challenged and later produced false documents to support her claims.
“When she was initially challenged by the charity, before the police got involved, Geraldine Coates decided the way to address this was to actually produce some fake bank statements to try and justify the transactions that had taken place,” said DC Findlay.
“Through the trial, it has been found they were fake bank statements.
“She has not taken full responsibility during the trial process. That is one of the things that really shocks me.”
The Honiton and District Agricultural Association has for many years supported agricultural and educational projects across the area through fundraising activities including land rental, auctions and its annual agricultural show.
Police say the financial losses extended far beyond the charity itself.
“The charity ultimately would have provided funding to lots of different people and local organisations,” DC Findlay said.
“Ultimately certain people in the locality would have missed out.”
He added that members of the charity were deeply affected by the discovery.
“I think they were taken in,” he said.
“When they ultimately discovered it, they were in deep shock.”
The investigation itself lasted several years and involved the painstaking examination of thousands of financial transactions, bank records, invoices and witness statements.
“I’ve had the case for about five years,” DC Findlay said.
“There were a number of officers in the case before me.
“There have been lots of hours, lots of going through paperwork, lots of spreadsheets and lots of statements to be obtained.
“It is quite a big inquiry to run.”
Detective Inspector Dan Parkinson, who oversees fraud and cyber crime investigations across Devon and Cornwall Police, said the case serves as a warning to charities and smaller organisations.
“It is unusual, but we do unfortunately see, particularly with smaller companies and charities where there is a lot of trust placed in individuals, that sadly this does happen,” DI Parkinson said.
He stressed that the damage caused by fraud often extends beyond financial losses.
“It is not just the money they have lost,” he said.
“It is the impact on the individuals who were working there, who were part of the charity and put their complete trust in this lady.”
DI Parkinson also warned that organisations should ensure proper checks and balances are in place.
“What we’d say is make sure those checks are built into your processes,” he said.
“Do not put all your trust in individual people.
“Make sure there are things to actually check that what is being done is correct and that the accounts, and certainly all the money, are being handled properly.”
He urged people not to ignore concerns for fear of causing offence.
“We do not want to offend people,” he said.
“But as professionals, and certainly professional accountants and bookkeepers, they will be more than happy for their work to be checked by other people to verify that it is all correct.”
Reflecting on the lengthy investigation, DC Findlay said complex fraud cases often require patience from victims and the public.
“We can investigate these cases,” he said.
“They do take some time, so people’s expectations have to be managed.”
For the Honiton and District Agricultural Association, the conviction brings to a close a chapter that has seen more than £200,000 diverted away from projects intended to benefit the local East Devon community.
( Photos: Unsplash 📸 )