PRESCOTT STAFF IN FRAUD PROBE

PRESCOTT STAFF IN FRAUD PROBE

Western Daily Press, 18th April 2005

Three people have been arrested over allegations that they siphoned off nearly £1million from the Office of the Deputy Prime Minister, police said last night. Fraud officers were called in after it emerged that £850,000 had gone missing from John Prescott's Government department.

A Scotland Yard spokesman said: "We are investigating an allegation of fraud involving a Government department.

"Three people - a man and two women - were arrested on April 5 and subsequently bailed to return on a date in May. Inquiries continue.

"It appears the offences occurred over a seven-month period beginning in January 2004. This involved hundreds of thousands of pounds."

One or more of the three may have worked within the department. The man and one of the women were a married couple.

It was reported yesterday that the fraud involved a ghost company with a series of cheques being sent to a fictitious employee.