Fraud expert jailed after stealing £400,000 using insider knowledge

A FRAUD specialist who stole more than £400,000 from his employers over a six-year period has been jailed.

Gordon Murray, a fraud co-ordinator for insurance firm National Farmer's Union Mutual (NFUM), duped friends and family - including two police officers - into helping him.

The 30-year-old encouraged them to invest in a fake share plan so that he could use their bank accounts to deposit cheques which funded his "luxury lifestyle".

He made a total of 156 fraudulent transactions and was only caught when an audit highlighted discrepancies.

At an earlier hearing at Glasgow Sheriff Court, Murray, of Airdrie, admitted forming a fraudulent scheme to obtain 409,572 from the firm's Glasgow office between July 2002 and January 2008.

Jailing him for three years and four months, Sheriff Sam Cathcart said: "This was committed by you while you were in a position of trust, not only as a claims handler but as a regional fraud co-ordinator.

"I was told as fraud co-ordinator you received training, and whatever the background, you exploited loopholes in your employer's operating system for your own benefit."

He added it was "particularly despicable" that Murray had used a colleague's computer to try to conceal his involvement.

Murray was told he would have been sentenced to five years if not for his plea of guilty.

Murray encouraged friends and family to invest in a share scheme with the NFUM that would pay dividends in return for their investment.

The fraudster then reopened insurance cases where a claim had already been paid out and paid the money again to his unwitting family and friends.

They then cashed the cheques and took some of the money for themselves before handing the rest over to Murray.

He also created false claims in the system and again made cheques out to his family and friends. The procurator-fiscal depute added that two of the people he tricked into helping him were serving police officers.

The claims handler knew how to abuse the system because he had been trained in combating fraud. The prosecutor said: "He was a trusted member of the company, so much so that he was selected to act as the regional fraud co-ordinator.

"In this role he received specific training on both combating insurance fraud and understanding the impact that fraud has on companies and individuals."

Murray also issued cheques to repay creditors and buy items such as cars, holidays and top-of-the range technology. The prosecutor added: "Examination of his financial circumstances suggest that Mr Murray was living well beyond his means and that the fraudulent cheques issued by him were used to fund a luxury lifestyle."

Murray tried to conceal his involvement by using a colleague's password.Following a company audit in January 2008, he was suspended and later resigned.

The firm had to pay out 130,000 for the internal investigation and rectifying the damage done by Murray.

Defending, Paul Nicolson said Murray exploited loopholes that were pointed out to him and did not go looking for them.

He added Murray had gambling debts and financial difficulties and was "extremely remorseful". Mr Nicolson also said that his client had co-operated fully with the police when the matter came to light.