Theatre finance boss stole over £800k to fund gambling addiction and blamed colleagues

Karen McGowan blamed her colleagues for the theft and suggested a 'dark web' attack on the theatre could be responsible for the crimes

The ex-finance boss at a major Leicester theatre has been locked up for almost five years after nicking over £868,800 from the venue, a charity by nature.

Karen McGowan,50, initially flung accusations at staff and hinted at a "dark web attack" as possible culprits for the missing money post-arrest. But the real story was far simpler: she had funnelled wads of cashtopping out at around £28,000 a popstraight into her 57 year old hubby Graham McGowan's bank account.

The couple then frittered most of the dough on gambling sprees and settling Karen's own betting debts. Today the McGowan duo stood before Leicester Crown Court While Karen begins her 4 years and 10 months stint in jail, Graham avoided imprisonment with a 23-month suspended sentence lasting two years.

During a session that saw Curve theatre's 's head honcho Chris Stafford and another woman from finance, who had been grilled due to Karen pointing fingers, taking seats in the public gallery, Stafford relayed a victim impact statement detailing the turmoil and financial havoc wreaked by the McGowans. He shared: "Members of the team - good, honest people - had to be interviewed by the police. Karen raised a number of false claims about how the fraud might have happened, including as part of a dark web attack on the Curve's system."

He revealed that his team were left in tears in his office when they found out Karen McGowan had been charged, saying: "Karen was only ever treated with kindness and respect.", reports Leicestershire Live. "Karen knew exactly what she was doing and would have known the impact her actions would have on the theatre, our finances and the people she worked with on a daily basis."

He also shared how his staff were distressed at having to be witnesses in the court case. The initial trial was set for June 2021, but faced multiple delays due to the backlog in courts following Covid, resulting in further dates being scheduled for January 2022, November 2022, and March 2023, all of which fell through.

Just two weeks before the rescheduled trial date in March 2023, Karen McGowan changed her plea to guilty. Her husband, Graham McGowan, admitted his guilt on the second day of the trial that kicked off on Monday (September 23) at Leicester Crown Court.

Karen McGowan pleaded guilty to two counts of fraud by abuse of position and one count of money laundering, while her husband pleaded guilty to one count of money laundering. Prosecutor Andrew Peet informed the court that the couple's failure to come clean earlier was the sole reason for the delays.

He stated: "The delay has been caused entirely by the defendants - putting their heads in the sand or denying the charges outright."

Karen McGowan, who began working at the Curve finance department in October 2014, was promoted to finance manager in October 2015 with a salary of £30,000. In February 2019, she was appointed head of finance, earning £34,340.

However, her fraudulent activities were exposed just two months after her promotion. The theatre was alerted to the fraud by Graham McGowan's bank. A joint investigation by the bank and the theatre revealed 104 transactions from the Curve bank account to Graham McGowan's account over a period of 17 months.

In total, £868,804 was stolen. The accounts showed increasing amounts being taken over time, with more than £140,000 being taken "in a matter of days" at the peak of the fraud, according to Mr Peet.

He added: "There are increases in frequency and increases in amounts because they don't get caught." The largest single transfer was £28,454.

Mr Peet explained how Karen McGowan would work long hours each day and never took holidays to ensure she could "keep a lid on things" and prevent anyone else from scrutinising the accounts. He described her as a "micro-manager" who was "unwilling to delegate" and "controlled the department to prevent discovery of her dishonesty".

He further stated: "The Curve is a charity. It exists on the goodwill of the public and the provision of public funds via the charity commission. She held a largely-unchecked position of trust within the charity."

Saleema Mahmood, defending Karen McGowan, told the court her client turned to gambling - initially with scratch cards - in a desperate bid to improve their "dire" financial straits. She explained: "That, perhaps, was folly. She was believing a win could change their fortunes."

Mahmood further added: "This was no doubt a very forceful and gripping addiction that took over a woman who, up until her mid-40s, had been competent. All of that blown away by a clear, strong addiction to gambling took hold of her client, who had been competent until her mid-40s, only to have her life derailed by a severe gambling habit."

She also revealed her client's shock upon learning from Leicestershire Police the total amount involved in the fraud.

John Lucas, representing Graham McGowan, painted his client as "pathetic" and dominated by his wife. He shared that the couple met in the Territorial Army and that Mr. McGowan had been a dedicated BT engineer for 27 years.

Lucas went on to say: "This is a case of becoming compliant in something he did not instigate. Mr McGowan did not steal any money, he did not gamble any money. He had a humble lifestyle. He let it happen - he trusted her."

He concluded: "He turned a blind eye to it because he loved his wife. Not a shred of that money affected him in terms of the quality of his life - that's why it's an extremely sad case."

During Mr Lucas's speech, Karen McGowan suffered a medical episode in the dock, with her husband by her side attempting to assist her breathing. Post-lunch, Ms Mahmood informed Judge Timothy Spencer KC: "There were concerns regarding the symptoms Mrs McGowan was exhibiting and she was taken to hospital."

"I asked if she wanted to be present for sentence being passed and she said she did not."

The judge proceeded to sentence her in her absence, later stating he believed her "panic attack" was authentic and "probably prompted by the deep shame" she experienced with Mr Stafford and other Curve team members at the sentencing.

In his sentencing remarks, Judge Spencer highlighted that Karen McGowan had inflicted "huge damage" on her colleagues and embezzled an "eye-watering" sum from a charity-dependent theatre. Regarding the fraud, he remarked: "The modus operandi was relatively simple - not overly sophisticated and probably bound to be discovered."

A proceeds of crime hearing has been set for March next year.