A long-serving member of staff at the giant financial firm Capita plc defrauded endowment policy holders out of almost £600,000 over a four year period, a court was told on Wednesday (Aug 10).

Katherine Young, 55, of Queensmead, Bredon, near Tewkesbury, Gloucestershire, was supposed to track down policyholders who had gone off the radar to ensure they got their endowment payouts, Gloucester Crown Court was told.

Instead, she recorded that many were untraceable - and paid the money into her own account.

Young admitted fraud by abuse of position between September 7, 2016, and September 17, 2020, and was jailed for 32 months.

Prosecutor Alun Williams said her highly responsible role as an operations developer at Capita plc involved tracing Zurich Insurance policyholders whose endowments had matured but whose bank details were out of date.

In total, she defrauded them of £598,960 over a four year period, he said.

Mr Williams said: "She was involved in an outsourced remediation project that required funds to be sent electronically to customer's bank accounts in relation to the maturing of endowment plans."

"But often bank accounts associated with these accounts were no longer being used and had become dormant.

"The aim of the remediation project was to reunite these accounts with the owners so that they could receive the benefits of the policy.

"This required customers to be traced. However, Young would identify which of the dormant accounts were closed and the owners were seemingly untraceable.

"This meant that Capita plc would be unable to make the payments due to the rightful recipients and it was these circumstances that Young exploited and would divert these payments into her own bank account.

"Young made 47 such transactions during the four year period and another transaction for £73,000 was unsuccessful because of a subsequent investigation following the discovery of her fraudulent actions.

"Young would pro-actively identify suitable customer accounts. She would use a small programme to identify small endowment plans when there had been no activity for some considerable time.

"However her offending came to light when in October 2020 a customer with a dormant account enquired with Zurich/Capita about a payment that had been due to him, which had not been made.

"An investigation was launched by the organisation which discovered that this payment had been made three years earlier into a bank account used by Young.

"Young was called in as part of this investigation but she terminated this interview. However, at a second interview she made full and frank admissions."

The court heard that Young had spent the proceeds on holidays and a deposit on a house for her daughter, a car and other high value items.

Steven Young, defending, said "The pre-sentence report identifies that Ms Young's childhood background has a direct bearing on her offending.

"Ms Young was employed at Capita PLC for 31 years before she began offending four years before she was caught.

"Her motive was part of her low self-worth and self-esteem, linked to a mental health issue which has continued with Young attempting to take her own life on a number of occasions.

"Ms Young was adopted as a child and didn't have any contact with her birth mother. She felt rejected and this has affected her mental health.

"Her motive for fraudulently obtaining the money was to give financial gifts to her husband and daughter in order to secure her position within the family.

"Neither of them knew what was happening as she had lied to them about how she had obtained this money. She wasn't directly benefiting from the money herself, but did it to ensure she was safe and secure in the family unit against a background of objection.

"Ms Young has since had the benefit of counselling and she is supported by her wider family and her friends. She has been honest with her new employers who are fully aware of these proceedings.

"I understand that in due course the whole amount, or at least the greater portion of it, will be paid back when Young draws down her own pension, the value of which is still to be determined.

"Ms Young has shown significant remorse and is ashamed that she has put her through this embarrassment. She has been ostracised by one member of the family over this situation."

The judge, Recorder Anna Vigars QC, told Young: "Your offending only stopped when a customer who was expecting a payment contacted the Zurich Insurance Company and an investigation was undertaken by Capita and your fraudulent actions were exposed.

"I accept your background is complex as it surrounds your adoption, leaving you with feelings of rejection. You felt the need to do more to secure affection from your family. There was no suggestion that they required this of you as you are an integral part of the family unit.

"In my opinion you knew what you were doing in making rational choices in a highly responsible role. You understood the consequences of your actions over the four-year period.

"However you have agreed to pay back the £598,960 from your own pension, which will affect your own retirement. This will be formalised at a future proceeds of crime hearing."

The judge sentenced Young to a prison term of two years and eight months and stated that it could not be suspended.