THE managing director of a vehicle hire company fleeced taxpayers by fraudulently applying for a £5,000 European Union grant through the county council.

Loyd Chandler of Bromsgrove-based Priority Hire admitted the fraud at Worcester Crown Court yesterday.

The 46-year-old Clarence Walk, Cheltenham, applied to Worcestershire County Council for ‘European Growth Fund’ cash after providing quotes from Areca Design for setting up an e-commerce website for his company (£5,520 plus VAT) and for supplying Apple Mac computers (£7,848 plus VAT). The fraud happened between January 1 and August 1, 2015.

Sally Cairns, prosecuting, said Chandler was supposed to supply invoices and statements to prove the money had been paid to the relevant supplier. Areca Design contacted the defendant to arrange the delivery of computers. He told them he had decided not to go ahead with the work. However, Areca appeared on ‘doctored’ bank statements even though they had not been paid for or carried out any work.

Areca Design contacted the council and the defendant was interviewed by police in June 2016 and December 2016.

Mrs Cairns said: “At that point he admitted sending bank statements to the council and said the payments were marked ‘Areca’ because he said they were destined for Areca.”

In June 2017 the council wrote to him for details of the company that had undertaken the work, asking for invoices. Chandler did not reply.

Mark Sheward, for Chandler, said the defendant started Priority Hire in 2009. He said a condition of receiving the grant was that it was spent on a nominated provider but that he discovered he could get the same service at a lower cost.

“What he should have done is gone back to them (the council) and said ‘I have found another provider who can do it cheaper - these are the details’” said Mr Sheward.

Chandler said he did not spend the grant on himself but on the company. He paid himself an £11,000 wage for 80 hours of work a week.

Judge Anthony Lowe fined Chandler £1,000 and ordered him to pay £5,000 compensation to the council and £535 costs.