A couple has been sentenced after defrauding Curve Theatre of nearly £870,000 over a period of 16 months.
Karen and Graham McGowan were involved in a fraudulent scheme that saw them siphon off a total of £868,804.31 from the theatre’s accounts between 2018 and 2019. The funds were funneled into a bank account in Graham McGowan’s name, despite him having no legitimate connection to the theatre.
Karen McGowan, 50, who was employed as head of finance at the theatre, used her position to misappropriate the funds. Graham McGowan, 57, who was not employed by the theatre, then helped launder the money by quickly moving it into his personal bank account.
The fraud was uncovered in April 2019, when it was noticed that the theatre had been the victim of a significant amount of fraudulent bank transfers. Following an investigation by Leicestershire Police’s Economic Crime Unit (ECU), it was revealed that Karen McGowan had been using the theatre’s funds to fuel her extensive gambling habits.
Karen McGowan was charged with two counts of fraud by abuse of position and one count of concealing or transferring criminal property. She pleaded guilty to all charges in March 2023. Meanwhile, Graham McGowan was charged with one count of entering into an arrangement that he knew or suspected was facilitating the acquisition of criminal property. He initially pleaded not guilty, but later changed his plea to guilty in September.
On September 27, 2023, Karen McGowan was sentenced to four years and 10 months in prison, while Graham McGowan received a 23-month prison sentence, which was suspended for two years. The court also heard that Graham had failed to report the large sum of money in his account to the authorities, which was a key indicator of his complicity in the scheme.
Detective Constable Nicole McIntyre from the ECU said, “Karen McGowan betrayed the trust placed in her by the theatre and its staff. The large sums of money involved and the high frequency of bank transfers raised suspicion and ultimately exposed her crimes. Graham McGowan’s failure to act in the face of this crime is evidence of his involvement.”