Gambling addict head of finance jailed for stealing from employer

David Gravel October 9, 2024

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Gambling addict head of finance jailed for stealing from employer

Gambling addict and former head of finance for The Curve theatre in Leicester, Karen McGowan, is now serving a four-year and ten-month prison term for embezzling £868,000 from her employers. McGowan, 50, stole the money over a 17-month period, shortly after gaining promotion.

McGowan started work with The Curve Theatre in 2014 in their finance team before being promoted to head of finance in 2019. Only two months after the promotion, McGowan’s husband’s bank alerted the theatre to suspicious activity. They squandered much of the money on gambling and resolving betting-related debts.

Sentenced to imprisonment

McGowan’s husband, Graham, avoided imprisonment with a 23-month sentence, suspended for two years. The crimes, detected in April 2019, and initially denied by Mr McGowan, brought ex-colleagues to tears. The police subjected the Chief Executive of the theatre, Chris Stafford, and another member of the finance team to questioning under caution for the offences.

Stafford said, in a witness impact statement, “Members of the team – good, honest people – had to be interviewed by the police. Karen raised several false claims about how the fraud might have happened, including as part of a dark web attack on the Curve’s system.”

False accusations hiding a gambling addiction

McGowan first threw accusations at her former colleagues before blaming a ‘dark web attack’ for the missing money. At first, McGowan pleaded not guilty to the much delayed and rescheduled trial, but in 2023, she changed her plea to guilty.

Karen McGowan confessed to committing fraud twice by taking advantage of her position, and she also admitted to one count of money laundering. In addition, her husband pleaded guilty to one count of money laundering. According to Prosecutor Andrew Peet, the couple’s failure to be honest about the crime and their gambling addiction earlier caused the delays. Peet said, “The delay has been caused entirely by the defendants – putting their heads in the sand or denying the charges outright.”

Mr Peet explained to the court that McGowan would work long hours taking no annual leave to avoid scrutiny. He told the court, “The Curve is a charity. It exists on the goodwill of the public and the provision of public funds via the charity commission.”

Saleema Mahmood, Karen McGowan’s lawyer, told the court she first turned to scratchcards to improve their financial situation but this escalated into a more severe gambling addiction. Mahmood said, “This was no doubt a very forceful and gripping addiction that took over a woman who, up until her mid-40s, had been competent. All of that blown away by a clear, strong addiction to gambling.” Mahmood told of Karen McGowan’s shock when the police revealed the full amount to her.

An extremely sad case

Mr McGowan’s lawyer, John Lucas, told the court his wife dominated him and that “he let it happen. He trusted her. He turned a blind eye to it because he loved his wife. Not a shred of that money affected him in terms of the quality of his life – that’s why it’s an extremely sad case.”

In sentencing at Leicester Crown Court, judge Timothy Spencer KC concluded that Karen McGowan caused “huge damage” to her ex colleagues and added “The modus operandi was relatively simple – not overly sophisticated and probably bound to be discovered.”

Gambling addict Karen McGowan suffered a medical episode during the judges’ summary, resulting in her being taken to hospital. The judge asked if she wished to be present for her sentencing, but she declined. The judge said it was seemingly a “panic attack” brought on by her “deep shame.” In March 2025, there will be a hearing under the Proceeds of Crime Act to reclaim a portion or the entire £868,804.31.

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