Two people have been charged with fraudulently siphoning nearly £180,000 from the accounts of a cash-strapped Yorkshire theatre.
Peter Alp and Dean Oates will appear in court later this month accused of defrauding Leeds Grand Theatre and Opera House to the tune of £178,340.
It is claimed Mr Alp, who was head of finance at the historic theatre and had responsibility for the finances of other council-related charities, conspired with Mr Oates to fabricate 54 invoices for services from a company called Bittern Entertainment that were never provided.
The alleged offences took place over a two-year period from 2011 to 2013.
Mr Alp, 52, of Minster Drive, Herne Bay, Kent, and 45-year-old Mr Oates, of Lime Bar Lane, York, will appear at Leeds Crown Court on October 24. A 51-year-old woman from York, who was also arrested, remains on bail pending further enquiries.
The alleged fraud came to light after Leeds City Council carried out an audit of the charity’s accounts.
A subsequent audit conducted by Armstrong Watson accountants found computer password breaches had led to suspected fraud payments being made.
A report to the theatre’s trustees by auditor William Booth said: “These breaches have happened because personal and confidential passwords appear to have been shared... There needs to be procedures in place to ensure this does not happen again.”
Mr Booth also criticised the trustees for failing to notify the Charity Commission of the suspected fraud until December last year – several months after it is claimed evidence first came to light.
The theatre has struggled financially in recent years. In June the council had to step in with a £653,000 bail-out because of its ongoing deficit and losses resulting from the alleged fraud.
The council declined to say whether any members of staff had been suspended or what action it had taken while the legal case was ongoing. A spokesman said: “As this matter is part of an ongoing legal process, it would be inappropriate to make any comment at this stage.”