Inverness councillor used Car Boot Sale account for personal use court hears

John Holden

AN Inverness councillor accused of fraudulently claiming £43,000 had undeclared income amounting to just under £250,000 over a six year period a court heard this morning.

Veronica Batchelor, manager of the benefits fraud team at Highland Council, giving evidence at the trial of Inverness South councillor John Holden, also said he had an Clydesdale Bank Account which she believed was being used as a Car Boot Sale account.

She explained it was in Holden’s name, he was only signatory and from 2nd January 2001 until August 2008 she believed payments for personal use amounted to £37,549.24.

She claimed it was being used for transactions for Orange, thought to be for a mobile phone, for Fitness First and restaurants.

Inverness Sheriff Court heard Ms Batchelor uncovered the information through Holden’s bank statements.

She explained Holden’s almost £250,000 of undeclared income was accumulated between 2002 and August 2008 while Mary Ewen, now his wife, had undeclared income in the same period amounting to more than £52,000.

She also said £19,183.25 in payments towards a credit card in Holden’s name came from "unknown sources" and could not be traced back to anywhere.

Holden, is accused of claiming income support in excess of £34,000 and Council Tax benefit and single occupancy discount of more than £9000 he was not entitled to.

He denies all the charges, which relate to periods between January 1999 and August 2008.

His trial has already heard evidence to show Holden had invested £7000 in an ISA in April 2007, at the same time Mary Ewen opened an ISA with £7000.

A joint investment bond was also created by the couple, into which £11,000 was invested.

The money for the new accounts was paid out of Holden’s bank account.

No income or capital was declared to Highland Council between 1999 and August 2008.

The court also heard how Holden lent £54,000 to a woman named Donna Wilson in November 2003.

Legal documents showed the money was to be returned to him along with £11,100.21 on the sale of a property on Balnafettack Road, Inverness.

Again none of this was declared to the council.

Evidence to suggest Holden also shared his house with his now wife, while claiming he lived alone, has also been led.

The court heard how Holden’s home was searched by police in September and various documents taken including divorce papers sent to Mary Elizabeth Ewen Ross, of 8 Teal Avenue, on 22nd October 1997, concerning her marriage to David Alexander Ross, which stated the relationship broke down because of her adultery with Holden.

After the search, which was led by detective sergeant Ian Anderson, Holden was detained on suspicion on fraud.

Twenty-one Crown witnesses are due to give evidence in the trial and at least five defence witnesses.

It is expected to last up to 14 days

The Charges

JOHN Holden is charged with making false claims for Council Tax benefit and single occupancy discount by stating he lived alone, had no capital and was not in employment, and not living with a partner who had capital or was in employment.

An alternative to the charge is that he knowingly failed to notify the council of his change in circumstances — that he lived with his wife, had capital and was in employment, and that his wife had capital and was in employment.

Altogether, he is accused of obtaining Council Tax benefit of £6925.24 and single occupancy discount of £2309.73 between 6th January, 1999 and 31st August, 2008 which he was not entitled to.

He is further charged with failing to give prompt notification to the Benefits Agency and the Department for Work and Pensions of his change in circumstances, which he knew would effect his entitlement to income support. He is charged with failing to notify them that he no longer lived alone, that he had capital and was in employment and that his wife had capital and was in employment, thereby obtaining income support in excess of £34,337.48 which he was not entitled to between 18th August 2001 and 29th August 2008.

Holden pleads not guilty to all the charges.