A FORMER police officer was facing jail last night after he admitted stealing almost £10,000 from a charity for sick and terminally ill children.

The Dream Foundation was set up to bring joy into the lives of chronically ill youngsters in the region.

Stars such as soccer hero Alan Shearer and Auf Weidersehen Pet's Tim Healey gave their time to contribute to the charity's efforts.

But Newcastle Crown Court heard yesterday that retired police officer David Foley, 55, was using the charity's cash for his own means. He pleaded guilty to 15 counts of theft, totalling £9,800, between August 1999 and June 2000.

The court heard he used the children's cash to pay household bills and meet other personal expenses.

Foley, of Longwood Close, Sunniside, Gateshead, Tyne and Wear, was warned he could be facing prison.

Judge Guy Whitburn said: "A theft from any charity by a trustee is a very serious matter indeed. I warn you that I view this matter extremely seriously. A custodial sentence will not be ruled out.

The judge told the court: "The method he adopted was to divert money from the Dream Foundation of which he was a trustee to fund his own household expenses."

Foley, a former police constable based in Gateshead, was suspended from duty by Northumbria Police when the investigation was launched. He retired from the force in May last year after 30 years' service.

The court was told that conspiracy to defraud charges against Foley's wife, Elaine, 50, had been dropped.

Joseph Mulcahy, 56, and his fiancee Maureen Lewis, 50, of North Lodge, Chester-le-Street, County Durham, face charges of conspiracy to defraud the charity between January 1994 and December 2000.

The pair were arrested last year after a police investigation into allegations that about £300,000 had been siphoned from the foundation.

Their trial was adjourned for six weeks and they were granted bail.

The Newcastle-based charity, whose patron was former Coronation Street star Denise Welch, was set up in 1994 by Mr Mulcahy and Ms Foley.

In the six years it ran, it helped more than 300 children, with stars from showbusiness, soccer, and TV supporting high profile fund- raising events. Among those who contributed were chart-topping Irish girl band B*Witched.

Youngsters were sent on trips to Disney World and other destinations abroad as they battled for their lives.

Denise Welch's actor husband, Tim Healey, was also involved with the charity through his annual Golf Classic Tournament, which has raised tens of thousands of pounds for it.

Foley was honoured for his work with the Foundation when he was given a Paul Harris Fellowship award by the Rotary Club.

Detectives raided the charity's offices, based on the fifth floor of Newcastle Breweries Newcastle headquarters, three years ago. The brewery had given the foundation free accommodation as one of the many charitable gestures of support from local business.

Police used search warrants to seize documents, files and computer material after receiving an anonymous tip-off.

A Northumbria Police spokesman said: "David Foley worked in the Gateshead West area and was suspended during the investigation."