A former employee of Leicester’s Curve has been gaoled for four years and ten months for defrauding the theatre of more than £800,000 to fund her gambling habit.
Karen McGowan’s crimes were uncovered in April 2019 when it was found that £868,804.31 had been taken from the theatre’s accounts over a period of 16 months—and paid into a bank account in her husband Graham’s name.
Karen was employed by the theatre but Graham was not an employee. However, in each case the money was laundered into a bank account in his name. An investigation by Leicestershire Police’s economic crime unit found that she abused her position as head of finance to move the funds into her control.
Karen McGowan, 50, was subsequently charged with two counts of fraud by abuse of position and one count of concealing, disguising, converting, transferring or removing criminal property. She pleaded guilty to all the charges during a hearing at Leicester Crown Court on 7 March 2023.
Graham McGowan, 57, was charged with one count of entering an arrangement which he knew or suspected facilitated the acquisition, retention, use or control of criminal property. He pleaded not guilty and a trial started on Monday 23 September. However, the following day he changed his plea to guilty.
Karen, of Harlequin Road, Sileby, Leicestershire was sentenced to four years and 10 months in prison. Graham was given a 23-month prison sentence suspended for two years.
Nicole McIntyre from Leicestershire Police said, “the fraud came to light with the high volume of bank transfers and the significant amounts of money that were involved. The money Karen took was used to fund her extensive gambling habit.
"She carried out a callous act knowing that as part of her job she was entrusted to manage the charity’s finances, taking full advantage of the trust that was placed in her and her role.
“On top of this, at no point did Graham contact the theatre, his bank or the police to report that such a large sum of money had appeared in his account—as you would expect him to do if he was unaware of what she was doing.
“The fact he didn’t notify the authorities is a clear indicator—later confirmed by his guilty plea—that he was complicit. I hope the outcome really brings home the impact of the couple’s actions and makes them reflect on their wrongdoing.”
Curve’s chief executive Chris Stafford and artistic director Nikolai Foster commented, “although this was an incredibly challenging time for our theatre, the day-to-day business of Curve has not been affected by the fraud and we have continued to go from strength to strength.
"We will now begin the process of recovering funds, and we would like to thank the team at Leicestershire Police, especially Nicole McIntyre and Meryl Bishop, who worked tirelessly to secure justice for our theatre."
Current chair Sita McIntosh and former chair Ian Squires added, “our sincere thanks must be given to the incredible leadership of Chris Stafford, Nikolai Foster, the Curve executive team and board members of Leicester Theatre Trust.
“Despite this deceitful crime being discovered in 2019, the leadership of Curve has worked tirelessly to ensure that our theatre continues to thrive and serve its audiences and local communities. As ever, we are committed to focusing our energies on the future and the incredible work that is delivered by this inspiring and dedicated team.”