Gambling addict jailed for £150k company fraud which he used to pay for his habit

Severe gambling addiction strips away a person’s ethics until stealing feels like their only way to survive the day - is the warning from a former addict who now runs centres to help people with addictions.

Steve Downie, who is over four years sober used to hide alcohol in Lucozade bottles after a downward spiral, has since focused his efforts on helping others battle their demons and has opened SMART Recovery addiction centres across Lancashire.

He is speaking out to educate others on how easy it is to lose everything from addiction after Richard Brown, a trusted worker, was sentenced to over two years in prison for defrauding Garden Store Direct out of £150,000 to support his gambling addiction.

Steve, who also works as a public governor for Lancashire and South Cumbria Foundation Trust said: “People get trapped in a cycle of chasing losses, genuinely convincing themselves that one last win will put everything right before anyone notices.

"The driving force isn't greed—it's panic and by the time workplace theft occurs, the addiction has completely overtaken their judgment.

“It serves as a stark reminder of why accessible, stigma-free support is urgently needed before lives are ruined.”

Richard Brown secretly sold off brand new garden furniture on eBay, even using his firm’s own packaging and courier service, the city’s Crown Court was told.

The 38-year-old admitted he was “disgusted, ashamed and embarrassed” with himself and his criminal behaviour.

But he continued for at least three years “constantly chasing the big win” which would have paid off his mounting betting debts.

Brown, who held a prominent role with Garden Store Direct, pleaded guilty to fraud by abuse of position and was sent to prison for more than two years.

It was said in court his mail order racket cost the firm, which is based at Weeton, at least £150,000 – on top of a further £33,000 he borrowed from his employers and has so far not paid back.

His lawyer told Judge Kirsty-Ann Gunn that he had since come to an agreement with the firm’s directors to sell his home in Platt Lane, Standish to pay off what he stole.

Prosecuting barrister Madeleine de Ferrer said Brown had begun his fraudulent behaviour during the Covid lockdown in 2020. But it was only discovered years later when the firm’s managing director noticed a garden storage box advertised for sale on eBay.

It was the same item that GSD supplied, and it was offered at just above cost price.

The seller’s name was Brown 4722. He decided to buy the item and noticed that the package was sealed with the company’s own tape.

Brown was called to a meeting with HR and he admitted he had even been using the company courier service to deliver items at their expense.

On investigation it was discovered the company’s goods had been sold that way going back several years – at least 10 were still up for sale online. Brown admitted he had been selling company stock since 2020, with the money going directly into his own bank account.

In a victim impact statement to the court, the MD said the fraud had had a “devastating financial impact” on the company. It had caused cashflow problems and had affected every aspect of the business.

In the end it had changed the way the company operated. Barrister

Daniel Harman, defending Brown, said his client had no previous convictions, and it was “a vanishingly rare commodity in these courts to have a 38-year-old man of good character looking down the barrel of going to prison”.

He said Brown had been contrite and honest from day one about his offending. And he added his boss had been “very magnanimous” about the matter when it came to light.

He had told him he must get help for his gambling addiction and said he was “in a really bad way”.

They had made a formal agreement for him to pay back all the money he had stolen, using the cash from the sale of his house – which still hadn’t been sold.

Mr Harman told the judge Brown had been gambling “thousands, thousands and thousands of pounds” online on his mobile phone. He had been “constantly chasing the big win – but that big win never comes”.

“He has done this to fund an addiction. It is very easy to sit away in your bedroom and fritter away thousand and thousands of pounds.”

He said that when the addiction began it was during lockdown. He fully accepted he behaved in a criminal manner and he said gambling had become “something of a pandemic in this country”.

“He has considerable remorse and shame. He is unequivocal about accepting responsibility – no-one else was involved. He feels disgusted, ashamed and embarrassed. That is genuine.”

Mr Harman said Brown had since got another well-paid job with another firm who knew what had happened at GSD. But he considered he had lost the best job he had ever had because of the fraud and also a good friend in the managing director.

“He no longer gambles,” he added.

“All his money goes to paying off his debts which (GSD apart) amounted to around £50,000.”

Judge Gunn said Brown had been held in a position of trust and respect by his employers and over three years had abused that trust for his own personal gain.

He had sold company goods using company packaging and courier services in a desperate attempt to pay for his gambling addiction.

She said the total value of items stolen had been around the £150,000 mark, with the £33,000 loan on top. His actions had deepened the sense of betrayal felt by the company’s managing director.

The company had been put at risk by the fraud and had had an emotional impact on the MD.

She told him: “What I find particularly troubling is that you knew the difficulties they (GSD) were experiencing.”

Judge Gunn accepted Brown had not been in trouble before and the fraud had been “wholly out of character”.

“I take into account your remorse and acceptance of responsibility. I accept the steps you have taken to address your gambling addiction and your attempts to make reparations (the agreement to sell his home to repay the debt).

“That represents a genuine intention to put right the harm you have caused the company.”

But she told him the offence crossed the custody threshold and, even though she could consider a suspended sentence, she felt only an immediate prison term could suffice. Brown was sentenced to 27 months in prison.

The judge made no compensation order after hearing he had come to an agreement with the company to sell his house to repay the money.