A letting agent who defrauded her employer of more than £60,000 has been sentenced.
Frances Leach, who managed properties for Signature North East’s letting division, was caught after the company noticed discrepancies in its finances.
Managing director Mark Small spotted a significant fall in profits in November 2023. When he questioned Leach, she offered an excuse and failed to provide a follow-up report. This led to an investigation and ultimately the uncovering of the fraud.
Leach, 33, used her role managing properties at Signature North East to transfer client funds into her own accounts, disguising them as refunds. The scam ran from March 2023 to February 2024.
Small’s investigation revealed a hidden spreadsheet tab showing unexplained refunds totaling £62,264—far above the typical £2,000—and a further £4,010 misappropriated to pay Leach’s rent and property work.
Small personally reimbursed affected clients and hired forensic accountants at a cost of £8,000. The firm also lost £200,000 in business due to client withdrawals.
In a victim impact statement, Small described the toll on his personal and professional life, including severe stress, illness, and the decision to put the company up for sale, having invested £250,000 to try to recover it.
Leach pleaded guilty to two fraud offences. She was sentenced to two years suspended for two years and ordered to complete 300 hours of unpaid work.
In a victim impact statement, Small said he found himself “under immense strain” when his firm started experiencing unexpected financial pressures in 2023. He said his accountants couldn’t identify what was going on and he personally reviewed nearly 7,000 financial transactions, which had an impact on him and his pregnant partner.
He ended up paying £8,000 to hire forensic accountants and he said the company lost £200,000 in further business as clients withdrew.
Small said: “The consequences have devastated both my personal and professional life.
“I have suffered severe illness due to the stress. I listed Signature North East for sale because the pressure had become too much. I’ve personally invested £250,000 to try to recover the business.
“I’ve been unable to return to work due to prioritising my health. The business is currently under offer.
“I continue to grapple with the profound impact of the defendant’s betrayal.”
