A local government official who helped himself to the funds of a small village parish council, almost bankrupting it, must pay back £36,919 in compensation.

But it is less than half the estimated benefit figure Stephen Round made from his criminality during his tenure as clerk to Kelloe Parish Council, in County Durham.

It was only when he resigned from the part-time post he held for five years, in July 2022, that the extent of his offending came to light, as scores of unexplained fraudulent transactions and unpaid bills emerged.

Round changed the parish’s bank accounting system, re-directing correspondence to his own address, and his activities went unchecked due to his failure to have the council’s finances audited.

His successor had to take out an emergency loan and rely on a bailout from the county council to maintain the services of the council to villagers.

(Image: The Northern Echo)

The 35-year-old defendant, of Rookhope Grove, Bishop Auckland, admitted a single count of fraud by abuse of position, in July, last year.

When he was sentenced at Durham Crown Court, last October, to what was described as, “a persistent abuse of trust over a sustained period”, the judge told Round the fraud appeared to have been undertaken by the defendant partly to fund, “lifestyle changes”.

But the court heard the defendant, who has no previous convictions, also had gambling, drink and drug issues, which, combined, had exacerbated his offending.

He received a two-year prison sentence, suspended for two years, with 200 hours’ unpaid work, a 7pm to 7am home curfew, and 30-days rehabilitation activity day requirement.

Proceeds of crime proceedings were instigated to see what funds could be clawed back from the defendant.

It has resulted in interim hearings before the court to monitor the progress of the inquiries into his means and availability of funds.

The saga reached a conclusion at the court last Friday afternoon (September 6), at a short crime proceeds hearing, before Judge Geoffrey Marson KC.

Settlement figures were agreed by Dr Chris Wood, for the prosecution, and Fiona Lamb, representing Round.

(Image: The Northern Echo)

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It was accepted that he benefited from his crime by £79,426, with the available amount for confiscation of £36,919.

Judge Marson, therefore, made a confiscation order for £36,919 to be paid as compensation to the parish council.

The defendant has three months to pay the sum in full or risk a 15-month prison sentence in default.