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By RICHARD OSLEY
 

Too much secrecy: Cllr Piers Wauchope
Town Hall hit by cash fraud

Senior staff member arrested over ‘serious discrepancies’ in bank accounts

A SENIOR member of staff at the Town Hall has been arrested over allegations of fraud concerning the bank accounts of Camden’s most vulnerable residents.
The 56 year-old man was arrested by detectives two weeks ago in connection with a series of serious discrepancies involving the accounts of elderly and mentally-ill people. He has been quizzed by detectives and released on bail with a strict order to return to Holborn Police Station next month.
Officials are guarding his identity and how much money is involved but an insider said that the amount is “substantial”, potentially running into hundreds of thousands of pounds.
Opposition councillors last night (Wednesday) demanded that the scale of the alleged fraud is made public immediately.
The missing money relates to accounts that the council looks after on behalf of residents unable to handle their own finances. Social services manages around 500 accounts. It is not clear how many accounts are affected but relatives of residents involved are being informed. A second council staffer has been suspended by the council as part of the investigation but has not been arrested.
Labour social services chief Councillor Maggie Cosin insisted that lost money would be reimbursed.
She said: “These types of investigation can take a long time while thorough evidence is gathered. I hope the situation is resolved swiftly for the residents, their families and our staff.”
Barry Sullivan, from the Camden Town Neighbourhood Advice Centre, said he raised concerns more than a year ago about the handling of his friend Fred Newman’s account which was managed by the council. Mr Newman died last June and friends have been left wondering whether his money was affected.
Mr Sullivan said: “We questioned what was happening with Freddie’s account but everything was made so difficult for us.”
A council spokeswoman said that the Town Hall would not comment on individual cases.
The latest investigation follows a £1.7 million fraud in the housing benefits division at the Town Hall two years ago. Council employee Hieten Patel was arrested for siphoning benefits cash into an accomplice’s account. He was jailed last year.
Councillor Piers Wauchope, leader of the Conservative group at the Town Hall, said yesterday (Wednesday): “It is less than two years ago that we learned that Camden had lost £1.7m in a housing benefits fraud. On that occasion employees were reprimanded for letting the New Journal know how much had been stolen. The council is just as obsessed with secrecy today and will not come clean about how much has been taken.”
Liberal Democrat chief Councillor Keith Moffitt added: “I want to see an urgent and thorough investigation to make sure nothing like this ever happens again.”
 
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