Whittlesey man and woman among five guilty of fraud which left schools facing legal action

The five were all convicted of offences in connection with Tandem Solutions Group Limited based in Bourne, which was established in 2009, dealing in information and technology supplies.

One area of the company’s business was to offer Managed Print Solutions (MPS), supplying photocopier and printer services to schools and local businesses through a lease agreement.

Lincolnshire Police said that as part of the service, the company would provide equipment, servicing, training and would offer inclusive prints to satisfy their customers’ printing requirements at an attractive cost.

“Schools who were involved with MPS suffered a financial loss of around £764,531”

The force said that former sales director, Peter Nicholson, was the principal suspect behind the fraudulent sales practice within MPS. Working with his team, they would deliberately record lower inclusive prints than agreed, miscalculate costs of print deals and manipulate contracts after they’ve been signed. The team would also make false representations to finance companies about the nature and extent of the equipment being provided to the schools in Lincolnshire, Northamptonshire, Cambridgeshire, South Yorkshire, Bedfordshire and Norfolk.

This meant that schools were later hit with unexpected excess charges and were found to be paying for equipment that had not been requested or received. Some schools also faced legal action as they were unknowingly tied to lease agreements that they believed would be settled as part of the MPS.

It’s believed commission was a motivating factor for Nicholson and his team. During the course of their investigations, detectives uncovered that MPS sales executives received a 15% commission on the gross profit on each deal that they completed. Nicholson also received at least 5% commission on every single deal that was completed within MPS.

Schools who were involved with MPS suffered a financial loss of around £764,531.

The defendants and their sentences

Nicholson, 60, of South Promenade, Lytham St Annes in Lancashire, pleaded guilty to 21 counts of fraud by false representation during a trial which began on 28 April at Nottingham Crown Court. He also pleaded guilty to one count of acting as a company director whilst an undischarged bankrupt.

Nicholson was sentenced to five years for the 21 counts of fraud by false representation. He was also sentenced to two months for one count of acting as a company director whilst an undischarged bankrupt, which will run concurrently. Nicholson was also disqualified from acting as a company director for eight years.

Lisa Brown, 44, of Lincoln Road in Stamford was found guilty of two counts of fraud by false representation. She was sentenced to 18 months, suspended for 21 months. She must carry out 200 hours of unpaid work.

William Saunders, 49, of Coates Road, Whittlesey in Peterborough was found guilty of three counts of fraud by false representation. He was sentenced to 21 months, suspended for 21 months and ordered to undertake 200 hours of unpaid work.

Terrie Crown (nee Wright), 36, of Whetland Way, Whittlesey in Peterborough was found guilty of seven counts of fraud by false representation. She was sentenced to 21 months, suspended for 21 months and must also do 200 hours of unpaid work.

Susan Matthews, 66, of Great Northern Gardens in Bourne pleaded guilty to one offence of fraud by false representation when she appeared at Derby Crown Court in 2022. She was today sentenced to a community order and must do 100 hours of unpaid work. Matthews has also been ordered to pay £500 in costs and victim surcharge.

Lincolnshire Police said Nicholson was employed in September 2011 and took over the MPS sales team, becoming a company director in 2012. Brown and Saunders were recruited by Nicholson as sales executives in 2011 while Wright was employed to work in the MPS administration team in 2012. Matthews was already employed as the Financial Controller at Tandem Solutions Group, having joined the company in May 2010.

Despite the MPS team’s early success, cracks began to form in early 2013. By July 2014, the company had gone into administration.

An internal investigation into the company’s finances led to a report of fraud being made to the force in March 2014. After initial involvement from the Criminal Investigation Department (CID) in Grantham, the case was investigated by officers in the Economic Crime Unit (ECU).

Proceeds of Crime Act (POCA) proceedings will follow. Asset recovery under POCA makes sure that crime doesn’t pay.

“Their deception has diverted much needed funds away from children"

Where convicted criminals have benefitted financially from crime, the value of assets acquired by them such as cash, property and high-value goods can be recovered by applying to the court for a confiscation order.

Detective Chief Inspector Steve Knubley said: “This outcome stems from the hard work and resilience of staff and detectives from the Lincolnshire Police Economic Crime Unit. The specialist staff from within this team unpicked what was a complex matter specifically targeting schools. Through Nicholson and his team’s actions, schools lost significant funds from already stretched school’s budgets, and their deception has diverted much needed funds away from children.

“I would also like to pay tribute to the victims of this case who provided important evidence which was essential in securing the convictions.”

Mark Stephens, Chief Investigator at the Insolvency Service, said: "This five-year jail sentence and substantial director ban demonstrates the serious consequences faced by those who flout disqualification orders and engage in fraudulent conduct.

"By combining our director disqualification breach investigation with the wider fraud case conducted by our partners at Lincolnshire Police, we've been able to secure a robust outcome that reflects the full extent of Nicholson's criminal behaviour.

“When individuals are declared bankrupt, they are not allowed to act as company directors. This is to protect the public from those who have abused their positions of responsibility. This sentence should serve as a clear deterrent to anyone considering similar misconduct."