Over £1.28m returned to a local NHS trust following the success of Operation Tarlac

Over the last eight years, Lincolnshire Partnership NHS Foundation Trust (LPFT) has been working closely with Lincolnshire Police to help investigate a financial fraud that took place during the construction of Discovery House – a mental health rehabilitation unit in Lincoln.

Operation Tarlac started in September 2011 following a report of a fraud from LPFT. The investigation rapidly grew and encompassed other similar offences across the UK against public bodies and other organisations. The investigation identified losses to the organisations in excess of £12 million.

Following the sentencing of 12 offenders, for conspiracy to defraud and conspiracy to launder money as well as specific money laundering offences, investigators within the Economic Crime Unit have pursued those convicted for the confiscation of their criminal benefit.  The confiscation orders obtained against the defendants represent the largest proceeds of crime case undertaken by Lincolnshire Police.

Sarah Connery, LPFT Director of Finance and Informatics said:

“We are extremely grateful to Lincolnshire Police for their tireless efforts on this case which resulted in all funds lost in 2011 being recovered and returned to the Trust. While we were able to complete the construction of Discovery House, the fraud has unfortunately diverted funds away from progressing other improvements and delayed some of our ambitions on our estate strategy. The recovered funds will be invested in much-needed improvements to our estate to benefit patients at their most vulnerable time. The loss of any NHS funds is a great concern and we undertook a thorough internal investigation following this incident. We have strengthened our procurement and payment systems and processes and we have shared our learning with other NHS organisations to prevent future crime.”

The processes and procedures LPFT has put in place around the control of invoice payments have ensured that all Lincolnshire trusts will remain protected against similar fraud in the future. Local NHS Counter Fraud Services now approve all bank checks and changes carried out by the payments team and, as processes and procedures are refined, these are shared across NHS counter fraud networks.

Detective Sergeant Mike Billam, from Operation Tarlac said:

“I am delighted that through the Proceeds of Crime Act substantial assets have been identified from those involved in this fraud and that the funds are being used to compensate victims. Recovering the stolen funds has always been a key objective in this investigation and so I am particularly pleased that LPFT has now received the full value of their loss which I know will be used to benefit our communities.”

The processes and procedures LPFT has put in place around the control of invoice payments have ensured that all Lincolnshire trusts will remain protected against similar fraud in the future. Local NHS Counter Fraud Services now approve all bank checks and changes carried out by the payments team and, as processes and procedures are refined, these are shared across NHS counter fraud networks.