Fraudsters who stole from hospitals and cheated the taxpayer out of hundreds of thousands of pounds were sentenced today.

The thefts from Epsom and St Helier University Hospitals NHS Trust were deemed too extensive and complex to be precisely added up, following an investigation by NHS Protect – an organisation tackling crime in the National Health Service.

Ringleader Alan Hodge, 53, of Aultone Way, Sutton, and his fellow fraudsters drove up the price of work awarded to three contractors between 2007 and 2013.

The owners of the companies, Pierre Allen, 55, of Candler Mews, Twickenham, Stephen Thompson, 47, of Warnham Road, Furnace Green, and Philip Jones, 50, of Bulbeggars Lane, Godstone, were sentenced alongside Green at Croydon Crown Court today (Friday, December 9).

  • Hodge was sentenced to four years in prison.
  • Allen was sentenced to three years in prison.
  • Thompson was sentenced to two years in prison.
  • Jones was given credit for an earlier guilty plea, and was given a 12-month prison sentence, suspended for 24 months, and ordered to carry out 250 hours of unpaid work in the community.
  • Green was given a six-month prison sentence, suspended for 24 months, and ordered to carry out 100 hours of unpaid work in the community.

Your Local Guardian:

As the Trust’s renal technical department manager, Hodge was responsible for maintaining dialysis equipment at three sites: St Helier Hospital (in Carshalton), Manorgate Satellite Dialysis Unit (in Kingston-upon-Thames) and Mayday Satellite Dialysis Unit (at Croydon University Hospital, Thornton Heath).

Your Local Guardian:

He also visited patients’ homes to decide what modifications would be needed for them to receive home dialysis, and to procure the works required.

Attention focused on Hodge – nicknamed “Dodgy Hodgy” by his peers – in October 2013 after the trust suspended him for an unrelated disciplinary matter – for which he was later dismissed, in January 2014.

The renal department manager soon noticed that when Hodge was away, far fewer invoices were being presented for her to authorise in his work area.

Expenditure from the renal technician’s non-pay budget dropped to less than half.

Further investigation established that he had been exploiting his position by engaging people he knew as contractors, ostensibly to carry out necessary work for the trust.

However, invoices were raised in their name for work, which was either not done at all, done far more frequently than was necessary, or was greatly overpriced.

  • Between 2009 and 2013 Allen’s company Mains Contractors was paid a total of £388,023.58 by the Trust;
  • Between 2007 and 2013 Thompson’s company S J Thompson Plumbing was paid a total of £118,045.69; and
  • Between 2011 and 2013 Jones’ company TWS (Southern) Ltd was paid a total of £43,609.00.

Investigators found 266 invoices for work contracted out to the companies that was either not done, was not necessary, or came at excessive cost.

This work included:

  • Modification of patients’ homes for dialysis treatment when they never received their treatment at home;
  • Electrical and plumbing installation work at a prison (HMP High Down) that was actually undertaken by prison staff;
  • Installation of dialysis equipment at HMP High Down that was actually undertaken by Hodge and another member of Trust staff as part of their paid NHS duties;
  • Installation of flooring at a dialysis patient’s home that was actually fitted by the patient’s own relative.

Invoices submitted by these companies contained only a minimal description of the work done.

But they were thwarted by the thoroughness of NHS Protect’s investigators, who scrutinised text and chat messages between Hodge, Allen, Thompson and Jones.

These indicated they were colluding to inflate the invoices their companies (Mains Contractors, S J Thompson Plumbing and TWS (Southern) Limited) submitted to the Trust, in order to share out the invoiced amounts between themselves.

Some of the conversations between Hodge, Allen and Thompson suggested that Hodge was generating invoices on behalf of Mains Contractors and S J Thompson despite supposedly engaging these companies as contractors.

The fraudsters lived in some style at the expense of the NHS: Hodge indulged in frequent Butlin’s holidays and maintained a large static caravan in Hastings.

He and Pierre Allen of Mains Contractor spent over £15,000 on Chelsea Football Club tickets, while Allen’s 50th birthday party at the 200-acre Gatton Manor Golf club in Surrey cost more than £6,000.

Nicknamed 'Dodgy Hodgy' by some of his peers in renal circles, Hodge had gained the full trust of his employer, and of the hospital’s charity, which at one point was persuaded to buy two second-hand dialysis chairs from him for nearly £3,000.

There is no suggestion the frauds ever caused clinical harm to a patient. But investigators found various texts between the fraudsters which suggested a lack of respect for NHS property, including: “Any advice on buggering up the pumps?”

At an earlier hearing in November – after a seven week trial – Hodge, Allen and Thompson were found guilty of fraud by abuse of position (contrary to the Fraud Act 2006) while Hodge’s partner, Lisa Green, 49, was found guilty of money laundering offences (contrary to the Proceeds of Crime Act 2002).

Jones was the only one to plead guilty, to fraud by abuse of position, in May.

Epsom and St Helier University Hospitals NHS Trust released a statement following the sentencing. It read: "We can confirm that a former member of staff has been found guilty of fraud, following a Crown Court hearing against him and his associates.

"Our Renal Team work incredibly hard to provide our patients with a high standard of compassionate care, whether they need regular dialysis in hospital, are preparing for a kidney transplant or are cared for at home. We would like to assure all of our patients and their loved ones that Alan Hodge’s behaviour did not cause harm to the people we care for.

"However, Mr Hodge has badly let down his colleagues, his profession and our hospitals. Furthermore, his dishonest and fraudulent behaviour paid no regard to the taxpayer or our organisation during a time when the NHS as a whole faces significant financial challenges."

It continued: "Although it is extremely rare for a member of NHS staff to be able and willing to abuse their position in such a way, since this matter was uncovered we have taken steps to help make sure it cannot happen again.

"They include reviewing the way orders are submitted, how we approve the companies who supply equipment and how we review the standard of work from our contractors working off-site."

The value of fraud, bribery and corruption identified by NHS Protect and Local Counter Fraud Specialists (LCFSs) following the successful conclusion of investigations in 2015/16 nationwide was £6.5 million.

Sue Frith, Managing Director of NHS Protect, said today: “Painstaking, diligent work by NHS Protect’s fraud investigators has once again put a stop to precious NHS money draining away into private pockets.

“It is very sad when trusted staff with valuable technical skills, sorely needed by the NHS and its patients, turn to crime.

“The public rightly demands that NHS workers are people of integrity as well as technical ability.

“NHS Protect welcomes any tip-offs where fraud is suspected and wherever appropriate, it will be investigated and prosecuted.

“We support the strongest sanctions to deter others from defrauding the NHS.”

To report any incident of suspected fraud in the NHS, call the Fraud and Corruption Reporting Line - powered by Crimestoppers - on 0800 028 40 60 or report online at www.reportnhsfraud.nhs.uk