Three people were jailed today, and another given a suspended sentence for their roles in a contract rigging ring involving training and skills education operated through the Learning Skills Council ("LSC"). Three of the defendants worked for the Shropshire office of the LSC, which awarded contracts to local training providers. The other two were suppliers of training services and were complicit in the corrupt arrangements. The investigation, jointly conducted by the Serious Fraud Office and the West Mercia Police established that in contracts of over £1.3 million around £270,000 represented kickbacks to Paul Kent who, with his wife, spent lavishly. He received the highest sentence of four and a half years imprisonment. A fifth defendant is to be sentenced on 12 June.
At Birmingham Crown Court today HHJ Orme sentenced as follows:-
Paul Robert Kent (DOB 7/2/1964), four years and six month's imprisonment. He was a Director of Adult Learning at the Shropshire Learning and Skills Council ("SLSC"). He was the central figure in the fraud.
Silinder Singh Sidhu (DOB 18/3/1966), three years imprisonment. He was the Marketing Co-ordinator at SLSC and also had a business providing consultancy.
John Stuart Ford (DOB 2/8/1952), two years imprisonment. Known as Stuart Ford, he operated the Telford Learning Zone ("TLZ"), a training facility.
Rebecca Hoyle (DOB 12/8/1964), one year imprisonment, suspended for two years. Was a self employed graphic designer trading as "DesignBarn" and provided training.
Sarah Kent (DOB 4/7/1973 formerly Sarah Emberton) sentence adjourned. She was Internal Funding Manager for SLSC.
On 7 July 2010 Sarah Kent was sentenced to 12 months imprisonment suspended for two years, 200 hours unpaid work and handed a 12 month supervision order.
Commenting on today's sentencing, SFO Director Richard Alderman said, "People who act illegally and divert public money to their own ends so that they can live well beyond their means must face the consequences. This case highlights the SFO's determination to bring these criminals to justice. I would like to pay tribute to our colleagues in West Mercia police who worked closely with us on this investigation. I would also like to assure the public that the Serious Fraud Office will continue to be vigilant on their behalf."
Background
This investigation arose through a whistleblower who alerted the authorities to a corrupt tendering ring within the Shropshire Office of the Learning Skills Council. The offences took place between June 2003 and August 2005 when the Learning Skills Council (LSC) was fully operational. In its day it was the biggest quango in the country spending, significant sums of public money.
The LSC was established by an Act of Parliament called The Learning and Skills Act 2000. The LSC operated for nine years from 1 April 2001 until 1 April 2010. In April of this year the work the LSC had done was taken over by The Young Peoples Learning Agency and The Skills Funding Agency.
The LSC existed to make England better skilled and more competitive. It had a single goal: to improve the skills of young people and adults to ensure a work force of world class standards. It was responsible for planning and funding of high quality education and training for everyone in England other than those at University. Funded by the UK Government and European Union funds, its annual grant rose from £7.31 billion in 2002-2003 to £9.32 billion in 2005-2006. For administration purposes the LSC was divided into nine regions and had 47 local offices. Shropshire was one of those local offices within the West Midlands region.
The fraud
In 2003 Paul Kent applied for and obtained a senior post with the LSC in Shropshire. In order to obtain his post he submitted a CV containing false details as to his previous employment. Kent's role in his new position involved the soliciting and evaluation of tenders from the private sector. Within a few months of starting work Kent encouraged a former school friend of his, Rebecca Hoyle, to apply through her business, for contracts with SLSC. In 2004 Kent expanded his corrupt practices to include Silinder Singh Sidhu, a work colleague, who subsequently became a good friend and who was best man at Kent/Emberton's wedding.
In 2005 the scale of the corruption increased significantly when John Stuart Ford, a local businessman who had hitherto been unsuccessful in securing SLSC contracts, was approached by Kent to apply for SLSC contracts.
Once SLSC contracts had been corruptly secured and monies paid on them, Hoyle, Sidhu and Ford paid Kent significant backhanders.
Kent received corrupt payments of just over £300,000 on contracts valued at over £1.3M.
Sarah Kent, formerly Sarah Emberton, also worked for SLSC. Kent was her line manager. They started a relationship and were married in July 2005. With Kent, Emberton benefited from his corruption. From late 2004 the two of them spent over £100,000 on a lavish lifestyle which included expensive cars (an Audi each) and watches (Rolex, Tag Heuer, Rado and Cartier) as well as circa £40,000 on their wedding and honeymoon.
In July 2005 shortly before his wedding to Sarah Emberton a member of staff at the Shropshire office of the LSC made an allegation that Paul Kent and others were engaged in corruption. The allegation was treated seriously and whilst Kent was on honeymoon an internal investigation was commenced by the Internal Audit Unit of the LSC. Kent was suspended upon his return and the matter was in due course referred to the police who then referred the case to the SFO.
Paul Robert Kent
Paul Kent (of Telford) started working at the SLSC in June 2003 as an Adult Learning Strategy Manager. He obtained the job by lying on his CV (count 1). He was promoted to the Director of Adult Learning (a senior management position) at the Shropshire office in Dec 2004.
On 29 April 2010, at Birmingham Crown Court, he pleaded guilty to:
One count of obtaining a pecuniary advantage by deception contrary to s16 (1) Theft Act 1968 (count 1, re his employment at the LSC via a false CV); 11 counts of receiving corrupt payments contrary to s1(1) of the Prevention of Corruption Act 1906 [Counts 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22].
One count of Corruption remains on the file [count 24].
Silinder Singh Sidhu
Silinder Singh Sidhu (of Walsall) began working at SLSC as Marketing Co-ordinator on 1 September 2003. He reported to Paul Kent. He resigned on 17 November 2003 citing his mother's terminal illness as the reason and, on Paul Kent's advice, became a self employed consultant performing the role of a Marketing Manager for the Shropshire LSC. Sidhu also started his own company, SLK Marketing Ltd and became a service provider to the LSC. Mr Sidhu received over £266,000 from the LSC for his work as a consultant and service provider. He paid Paul Kent just over £80,000 in corrupt payments.
On 10 May 2010, at Birmingham CC, he pleaded guilty to 2 counts of corruption contrary to s1 (1) of the Prevention of Corruption Act 1906. However, Mr Sidhu pleaded not guilty to two further counts of corruption, and following a two week contested trial was found guilty of both counts of corruption on Friday 21 May 2010.
John Stuart Ford
John Stuart Ford (of Shrewsbury, known as Stuart Ford) operated a Pitman Training franchise in Telford (est 1994) and Shrewsbury (est 1997). He was approached by Paul Kent in 2004 and set up the Telford Learning Zone (TLZ), part of a nationwide LSC project establishing local centres delivering training and business support, a library and e-learning facilities. Kent suggested TLZ would be run by Shropshire Learning Centres Ltd a company set up by Paul Kent. Ford's businesses were service providers to the LSC. Ford received just over £920,000 from the LSC under contracts his companies had secured. Ford paid Paul Kent £190,735 in corrupt payments.
On 13th September 2009, at Birmingham CC, he pleaded guilty to 5 counts (counts 17, 19, 21, 23, 25) of making corrupt payments to Kent contrary to s1 (1) of the Prevention of Corruption Act 1906.
Mr Ford gave evidence for the Crown in the trial against Silinder Sidhu.
Sarah Kent, formerly Sarah Emberton
Sarah Kent (of Telford) worked at the SLSC as an Internal Funding Manager. She reported to Paul Kent. They started a relationship in December 2003 and were married on 9th July 2005. Sarah Emberton then became Sarah Kent.
Sarah Kent enjoyed a lavish lifestyle which her husband's corrupt activities provided well in excess of their family income. In an eight month period (Dec 2004 to July 2005) they had spent just over £95,000 on luxury goods, high value services and their mortgage. Their take home pay in the same period was approximately £35,000. Exuberant spending included around £15,000 on designer watches, around £37,000 on a wedding and honeymoon, and approximately £24,000 on a brand new Audi TT, which was Paul Kent's wedding present to his wife.
On 29th April 2010, at Birmingham CC, she pleaded guilty to using criminal property [Count 27] contrary to s.329(1)(b) of the Proceeds of Crime Act 2002 (money laundering). She pleaded not guilty to one count [count 26] of entering into or becoming concerned in the an arrangement facilitating the acquisition, retention, use or control of criminal property contrary to s328(1) of the Proceeds of Crime Act 2002.
Count 26 remains on the file.
Rebecca Hoyle
Rebecca Hoyle (of Stroud) was a self employed graphic designer trading as "DesignBarn". Paul Kent was a former school friend of hers. She re-established contact with him through the social networking website "Friends Reunited" shortly before Kent joined the LSC. Within a few months of starting work Kent encouraged her to apply, through her "Designbarn" business, for contracts with SLSC. She was a service provider to the LSC and pleaded guilty to 3 counts of making corrupt payments to Paul Kent. She received just over £94,000 from the LSC for contracts secured by DesignBarn. She paid Paul Kent just over £29,000 in corrupt payments.
She pleaded guilty to 3 counts of corruption (3,5,7) at Birmingham Crown Court on 19th October 2009 contrary to s1 (1) of the Prevention of Corruption Act 1906.
Ms Hoyle gave evidence for the Crown in the trial against Silinder Singh Sidhu.
Notes for editors:
1. The SFO investigation was launched on 31 July 2006 and was conducted in conjunction with West Mercia Police.
2. The Serious Fraud Office is a government department responsible for investigating and prosecuting serious and complex fraud. The SFO is headed by the Director (Richard Alderman) who exercises powers under the superintendence of the Attorney General. These powers are derived from the Criminal Justice Act (1987).
3. Confiscation proceedings against all defendants are due to take place on a date to be fixed.
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