Judge spares fraudster jail despite nine-year housing benefit scam, citing ‘wholly exceptional’ mitigating factors as public gallery erupts in cheers
A council housing benefits manager who defrauded taxpayers of nearly half a million pounds to fund her online gambling addiction has walked free from court, sparking outrage over judicial leniency in serious fraud cases.
Joella Preston, 44, received only a suspended sentence at Maidstone Crown Court on Monday despite stealing £493,487 over nine years from Dartford and Sevenoaks councils in Kent through elaborate false housing benefit claims.
The merciful decision was met with tears from Preston in the dock and cheers from supporters in the public gallery, whilst Recorder John Brooke-Smith acknowledged his ruling would be seen as the court “failing to protect victims” and “failing to send out deterrent messages.”
Nine Years of Systematic Fraud
Preston, who had worked for Dartford Council since 2001, exploited her position as senior benefits leader to create 15 fraudulent housing benefit claims between September 2014 and July 2023. The court heard she used her intimate knowledge of the system to evade detection for nearly a decade.
Ironically, her role required her to be alert to fraudulent applications and liaise with fraud officers about suspicious claims. Instead, she manipulated the system by suppressing entitlement letters to those whose details she had used and ensuring payments stayed below the £2,000 threshold that would trigger automatic checks.
Prosecutor Rose Slowe told the court that Preston, whose married name is Waghorne, diverted payments directly into her own bank account and that of her unwitting husband. She then gambled the stolen funds on online slot machines, wagering a staggering £776,938 in total whilst recovering £355,709 in winnings.
The elaborate fraud only unravelled in 2023 when Preston was on sick leave for anxiety. During her absence, routine benefit checks by council staff uncovered the systematic theft of Department for Work and Pensions funding intended for genuine claimants.
‘A Relief’ When Caught
When police arrested Preston in February 2024, she described it as “a relief,” the court heard. Her family had been completely unaware of both her severe gambling addiction and her criminal activities throughout the nine-year period.
Defence lawyer Christopher Johnston told the court his client had expressed “genuine and deep” remorse for her actions and was “disgusted” by her behaviour. He said Preston had undertaken a six-week residential course to tackle her addiction and regularly attends sessions with both Gamble Aware and Gamblers Anonymous.
“She told me she would never be that person again,” Johnston said, highlighting that Preston had repaid approximately £3,900 of the stolen money and faces losing her matrimonial home under confiscation proceedings at a future date.
Judge’s Controversial Decision
Despite facing several years behind bars after pleading guilty to fraud by abuse of position, Recorder John Brooke-Smith handed Preston a two-year prison sentence suspended for two years, along with 200 hours of unpaid work and 20 rehabilitation activity requirements.
The judge acknowledged the “substantial” sum diverted from funds intended for genuine benefit claimants and the betrayal felt by Preston’s once-trusting colleagues who must now deal with the “emotional challenges” of her deception.
He also noted the damage to the councils’ reputation from the fraud going undetected for so long, as well as the additional costs of the investigation.
However, Brooke-Smith justified his lenient sentence by claiming that sending Preston to prison could “stop and potentially reverse” progress she had made in addressing her gambling addiction.
“I have no doubt it will be seen as the court failing to protect victims, failing to send out deterrent messages,” the judge admitted. “So, I stress again, it is because the mitigating factors are wholly exceptional and unusually powerful and persuasive.”
He added: “I am convinced that it is by far and away the best way to steer you away from any relapse.”
Character References Despite Massive Theft
The court heard that Preston had received a large number of character references speaking of her “compassion, integrity and honesty” – qualities seemingly at odds with her nine-year deception of taxpayers and vulnerable benefit claimants.
A psychiatric report detailed what was described as a diagnosed and severe gambling disorder, which the defence used to argue for leniency despite the enormous sum stolen and the lengthy period of offending.
The case raises serious questions about sentencing consistency, particularly as benefit fraud guidelines indicate that for serious conspiracy to defraud, the maximum sentence is 10 years’ custody. The scale and duration of Preston’s offending would typically warrant immediate imprisonment.
Councils Respond to Betrayal
In a joint statement, Dartford and Sevenoaks councils expressed regret that a “long-serving employee, who was in a position of trust, used their detailed knowledge to abuse the system and commit fraud.”
The councils confirmed that the fraud was uncovered by their own staff during routine checks and that police were informed immediately. They thanked Kent Police and the Crown Prosecution Service for bringing the case to a conclusion.
Both authorities said they have since reviewed their processes and implemented more stringent procedures to prevent similar fraud in future. However, the fact that Preston’s systematic theft went undetected for nine years raises serious questions about oversight and internal controls.
Public Money, Private Addiction
The case highlights the vulnerability of public benefit systems to insider fraud, particularly when perpetrated by those specifically tasked with preventing such crimes. Preston’s ability to manipulate the system for nearly a decade demonstrates significant weaknesses in financial controls.
Her gambling losses of over £420,000 represent public money that should have supported vulnerable residents genuinely in need of housing benefit assistance. Instead, these funds disappeared into online gambling sites whilst Preston maintained her respectable position in local government.
The suspended sentence means Preston will serve no time in prison unless she commits another offence within the next two years. She remains free in the community whilst completing her unpaid work and attending rehabilitation sessions.
Critics argue that such lenient sentences for serious fraud send the wrong message about accountability for those who betray positions of public trust, particularly when the victims include some of society’s most vulnerable people who depend on the benefit system.
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Image Credit:
The Law Courts, Maidstone — photo by Chris Whippet, licensed under CC BY-SA 2.0
