Charity Fraud Boss Saints and Scroungers


Charity Fraud Boss

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Theft of public money costs the UK taxpayer over £20 billion a year.

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This case was one of the biggest we've ever had,

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it came in to the region of about £500,000.

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This is money which should be going into the public pot,

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to spend on essential services.

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The victims in this case are the public,

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and the money could have been used to build schools or fund hospitals.

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And there are specially trained investigators making sure

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that justice is served.

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The system cannot be beaten,

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they will be held to account at some point.

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In this series we meet the men and women across the UK committed

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to catching criminals who steal from you and me -

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the British taxpayer.

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But we also hear stories from people who genuinely need

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help from public money.

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I'd swap places tomorrow with him if it meant he could walk.

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I just didn't know where to turn or what to do.

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And sometimes they don't even realise they're entitled to it.

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I just thought I'm one of them lowlifes who's had an addiction.

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We were lending money off so many people

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because we just had no other way of paying the bills.

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Coming up - the ruthless charity bosses who ripped off

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the savings of vulnerable adults they were meant to be helping.

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This is the worst kind of theft I think I've come across in 40 years.

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It's left a scar on everybody.

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A woman fraudulently claims almost £100,000 of public money.

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That money will be recovered,

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but it is a massive loss to the public purse.

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And the remarkable achievement of one young girl after her

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parents fought to get help.

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I don't think she'd be as happy, independent,

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loving, content...if she hadn't have gone there.

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The Economic Crime Unit at Lincolnshire Police deals with

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some of the most complex taxpayer frauds the country's ever seen.

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Cheques, cheques, cheques.

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It's a quiet backwater that I think a lot of fraudsters come back to,

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and we do get quite a high volume of fraud coming through the force.

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And one particularly big case the unit's recently investigated

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is that of Peter and Alison Childs.

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Mr and Mrs Childs were in an amazing position of trust,

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and these are the type of people who put a huge amount of trust in them.

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So what happened was absolutely disgraceful.

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It involved an allegation of theft of taxpayers' cash

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and benefit money from vulnerable adults.

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I can't believe the scale of it, and actually,

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if we'd had more time, goodness knows what we could have unearthed.

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The case first came to light in September 2011.

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It started as a report from Lincolnshire County Council

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to the police, following a whistle-blowing letter that

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had been sent to them by an anonymous person.

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The letter concerned a small charity,

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Lincoln and District Mencap.

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Based in the centre of rural Lincolnshire,

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they helped local disadvantaged people.

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Now, they're not affiliated to the Royal Mencap Society,

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but they are one of the 400 organisations that help

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adults with learning disabilities.

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It basically said that Alison and Peter Childs,

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who were the main people at Lincoln and District Mencap,

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had been taking money in the form of cash given over to them

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by the service users they were supposed to provide a service for.

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The service the charity offered was to help adults with

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learning disabilities manage their benefits

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so they could run their finances.

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Obviously you have to tread carefully,

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because whistle-blowing letters can be malicious

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and I wasn't entirely sure what I was faced with.

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Peter Childs had set up the charity in 1987

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and Alison started working there after they were married.

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This was a functioning charity that supported quite

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a lot of vulnerable people in Lincolnshire,

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and that service was still being provided,

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but the first thing I did was I got John Hopkinson involved,

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who's a financial investigator and a bit of an expert in that field.

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All of the service users were on state benefit one way or another.

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Mostly disability allowances.

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So all of the money that was coming in to Mencap was actually

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public money from the Department for Work and Pensions.

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The first allegation that John was made aware of was regarding

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the payment of utility bills.

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They collected cash off them

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every week to pay their utility bills for them.

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And it was quite clear from looking at

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the service users' utility bills,

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and the amount of money that was being taken off them,

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that too much was being taken off them.

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Actually...£40 this time.

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One of the witnesses at the charity told us that this money was being

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placed into an envelope system every Monday morning

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and then either Mr or Mrs Childs was taking it home.

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And it seemed they were using it for their own general day-to-day living.

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But obviously we had a mountain to climb in terms of finding out

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exactly what was going on.

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DC McGill and John Hopkinson needed to check the allegation that

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more money than necessary was being taken to pay the utility bills.

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We couldn't go any further until we'd spoken to them to see

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if there was a genuine reason this cash was being taken,

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so we interviewed Alison Childs first,

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and she told us that her husband, Peter Childs,

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was in fact taking lots of separate amounts of cash in an

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envelope system - as described by the witnesses -

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and he was taking this home on a weekly basis.

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He was using the excuse that these payments

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were for an honorarium for his various roles within the society.

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An honorarium is a one-off payment for something you wouldn't

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ordinarily receive a payment for, so chief executive,

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financial director, secretary and chairman.

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Four different roles, four different honorariums.

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It's also worth mentioning that he did receive pay as well.

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Having listened to the explanations of both

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Mr and Mrs Childs, I concluded that this honorarium was just an excuse,

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and it's tantamount to theft.

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To my mind, they looked like they were just pocketing all of the cash.

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But the police needed hard evidence,

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so they obtained warrants to search the charity's office as well

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as the main house and holiday home of Alison and Peter Childs.

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Interestingly enough,

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on the three premises we searched

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we didn't find a single bank statement

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relating to any of the four business accounts that we

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knew Lincoln and District Mencap held.

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It certainly raised suspicions, because I would

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expect for a business to see folders with bank accounts.

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They had admitted in interview that they didn't use

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internet banking, so I would think it was pretty strange.

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Plus staff members at the outset had told us

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there had been a lot of shredding going on.

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We were concerned that these bank accounts had been shredded.

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There were no bank statements,

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but there were audited business accounts.

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When I looked at the balance sheets

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and I couldn't find any documentation to support

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the figures on the balance sheet, it was clearly...clearly wrong.

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The people the Childs were stealing money from were locals

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like Darren Leek, who'd come to rely on their services as real support.

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If I'd got a problem or a health problem or whatever, he always

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listened to me and understood me, you know,

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about the house and whatever.

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Darren has learning difficulties and is blind in one eye.

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His mother Janet was surprised

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when he said he wanted to move into a flat on his own 23 years ago.

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BOTH: Hello!

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It was a real big moment.

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We took Darren down, we got this flat really nice for him.

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-You all right?

-Yes, thank you.

-Give us a hug.

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-Big hugs, as always.

-Yes.

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'I thought all night Darren would ring to say,'

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"I want to come home." I never slept.

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But rang him next morning, he was right as rain. Loved it.

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And I couldn't believe it.

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Like others who used the charity, Darren would pay money directly to

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them in cash and they would use it to sort out all his utility bills.

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Darren was lucky that his mother also kept an eye on his finances.

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After a while, she began to have her suspicions.

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For a few years it worked quite well,

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then they started cutting down what it covered.

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Things went, and he was paying the same money

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but it was covering less utility bills.

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He had to pay some himself, they gradually knocked it down,

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so it seemed quite expensive.

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Eventually Janet and her husband stepped in to help their son.

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When Darren first started doing direct debits, he was

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-a lot, lot better off.

-Yes, he was, yes.

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We knew exactly what he was spending

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and he had extra money to save for holidays.

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He did, that's right.

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Paying by direct debit meant the money wasn't going

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through the charity.

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A lot of the youngsters hadn't got parents, and to me,

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that was sort of who they targeted, financially.

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We're lucky, we got a lucky escape really.

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Cos so many of them have lost so much money.

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-OK then.

-OK, luvvie, bye.

-Bye.

-Talk to you at eight.

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Later, the police still have a long way to go to prove that

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Alison and Peter Childs are guilty.

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Now, it's only a tiny minority of charitable organisations

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which break the rules.

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Other local charities are a real lifeline.

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Like any expectant parent, Shirley Moran was full of hope

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and excitement about the arrival of her first child.

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I had a really healthy pregnancy.

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I didn't even have morning sickness.

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Everyone at work said I looked blooming.

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Everything was great.

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No complications at all.

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But when it came to the birth, things didn't go to plan.

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It was failed ventouse, failed forceps,

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and then it ended up in an emergency caesarean section.

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It was a 30-hour labour.

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I was physically drained throughout the labour, and I was scared.

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At the end someone who saw me

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said that my body was actually trembling with the trauma

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at the end of the birth on the bed.

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Shirley gave birth to a girl, and called her Ava.

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It was quite a lot of panic, I didn't really know what was going on.

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I just remember, I saw her briefly and she was whisked away.

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Later found out that she'd had a fit after she was born

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and she'd gone into shock, and she'd been put into a self-induced coma

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to reduce the swelling on the brain.

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It didn't seem to affect me in the beginning -

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I was just so happy that she was alive.

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But an MRI scan of Ava's brain when she was two days old

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showed that something was wrong on the left side.

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Hello, Shirley. How are you? You all right?

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Thank you very much.

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I mean, people talk about instincts and maternal instincts...

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Did you have a feeling with Ava that she had a problem

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from the beginning?

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Because we were lucky enough to have the MRI scan,

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we did know there was something wrong with Ava's brain.

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But the consultant couldn't say what it would mean -

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they couldn't say if she'd walk or talk.

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We didn't know if she'd ever be able to stand or sit unsupported.

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You're being very matter of fact, there,

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but what you're describing sounds incredibly scary.

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Yeah, it was very hard. I suffered a lot of trauma after the birth.

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Mentally.

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Yeah, it was a really difficult time.

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The first few months after the birth were a little bit of a blur.

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When you try and explain that to people,

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do they understand what a traumatic birth entails, what's involved?

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Mm... Not really.

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It's hard.

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Like, I just kept going to the neonatal unit when she was poorly.

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I just kept functioning.

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It wasn't till she was supposed to reach milestones

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that we noticed that something was wrong.

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She wasn't sitting up, her right hand was always clenched,

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and her head was slightly... always leant to the right.

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I'm trying to imagine how that feels.

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It must have been incredibly difficult to deal with.

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It didn't really sink in until the January after she was born,

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so when she was about six months old,

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that's when I became very depressed about the whole thing.

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It was around this time that Ava was diagnosed with cerebral palsy.

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I didn't even know what cerebral palsy was.

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It was Ava's physiotherapist who first used the word,

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when she was six months old, diagnosed with cerebral palsy.

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Before then, I didn't know what it was.

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And everyone who has cerebral palsy's different,

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so it was hard to know what Ava would be like.

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They were offered physical therapy on the NHS

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to help move Ava's arms and legs.

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The occupational therapist used to give things like special cutlery

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and the physiotherapist used to encourage me

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to do, like, messy play with her.

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I didn't even think Ava would walk or talk.

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I was happy she was there and alive,

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but I wasn't positive about her future.

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I didn't know whether she'd ever be independent or happy.

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I was just focused on getting her the best help she could get,

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and therapies.

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Shirley found out about a charity which

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specialises in a form of physical education

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which helps children with cerebral palsy.

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And fortunately the main centre for the national institute

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is in Birmingham, which was on their doorstep.

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OK, so you walked through the door.

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Talk me through the first contact you had with them.

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Ava was crying and I tried to get her to walk,

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holding on to, like, a wooden ladder thing.

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It was really, really hard, the first...

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I'd say at least the first four classes.

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Conductive education focuses on learning through physical movement.

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Its aim is to help children to become as independent as possible.

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At first I wasn't sure if this was the place for Ava to come,

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and then as the weeks went on I saw the improvement in Ava.

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She was using her right hand more, she was less frustrated.

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She learnt to sit independently very quickly.

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She was a lot happier coming to the classes.

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Having found the right place for Ava,

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Shirley now had a battle on her hands

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finding the money to pay for Ava to attend full time.

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I was just amazed that there was a place like that

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so close on my doorstep.

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Shirley was determined to get help with the funding.

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Eventually, her local authority agreed to cover the costs

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so that Ava could attend four days a week.

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So, you were starting to see the first real signs of progress.

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Before long, she could sit independently on a seat

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without anyone helping her.

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That was the first milestone she did there.

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Ava was nearly toilet trained - and then it just all got better,

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and easier.

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I think one of the key things with any child with cerebral palsy,

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for example Ava, is that early intervention.

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So, when the child is very young, the families are...

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You're concerned, you're confused,

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you're not sure what to do with the child,

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because they're not, perhaps, the child that you were anticipating.

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So what we can do is provide very early support

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so you can integrate the child into the family,

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give the parents confidence in how to deal with the child,

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and that sets the child on a route to development.

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When she was four years old, Ava reached another big milestone.

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I remember collecting Ava from school

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and one of the staff basically said to me, "Watch this."

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And she took a few steps towards me.

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They had their arms, like, in case she swayed, but she took a few steps.

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And I'd been saying to them previous to that, "Will she walk?

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"Do you think she'll ever walk?"

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And they said, "Yes, yes," but I didn't believe them.

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It was something that I never thought I'd see happen,

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and I was very proud and happy.

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And this is Ava today, aged eight.

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# And on that farm he had a.... #

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I didn't think Ava would be so independent, and confident, as well.

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I mean, she can cut her own food, use a knife and fork.

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She can cut soft food, she can manipulate her two hands

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to squeeze the toothpaste and have the toothbrush there.

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Never thought she'd ever walk up the stairs,

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let alone do it without holding on. Um...

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Putting on her own splints, obviously, and I taught her

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to ride a trike, and she can also ride a normal bike with stabilisers.

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Very good, Ava. Good stopping. Slow down.

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At home it's quite hard sometimes to get Ava to do, like, her homework

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and bits and bobs.

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You know, she needs a little bit of encouragement, like most children.

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But at school she's very good.

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Because of the praise she's given

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when she achieves doing something, and the encouragement she's given.

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So, I would like to nominate this week a little girl

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who's worked really hard.

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She listened hard in my lesson, and that's Ava.

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Yeah!

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Shall we have a little look?

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Ooh!

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Whose name is that?

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-Well done for working hard this week, and sit...

-Settling...

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..settling in school.

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-Wow! Would you like to admire it as well?

-Yeah!

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I've been... Take it home!

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Shall we all give Ava a big clap?

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Well done. Very good.

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Come on, little miss.

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-Bye, Ari.

-Bye, Ari!

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Ava's very lucky.

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A lot of people, children,

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adults with cerebral palsy don't have such great speech that Ava does.

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William took Mrs...

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..Lacey's dog...

0:20:300:20:33

Moo!

0:20:330:20:34

SHE LAUGHS

0:20:340:20:35

She learnt to sing at conductive education

0:20:390:20:41

before she could actually talk, and then her speech got better.

0:20:410:20:44

# Uh-oh, things you never said to me

0:20:440:20:49

# Uh-oh, tell me that you've had enough... #

0:20:490:20:53

Her music talents are amazing, her singing,

0:20:530:20:56

she picks up a song as soon as she hears it. Really quick.

0:20:560:20:59

That is brilliant!

0:20:590:21:01

And Ava has a circle of friends, too,

0:21:040:21:06

since Mum enrolled her in some clubs.

0:21:060:21:09

-This is on the Brownie holiday.

-Oh, she's a Brownie!

-Yeah.

0:21:090:21:12

That is brilliant.

0:21:120:21:14

And with something like the Brownies,

0:21:140:21:16

can she take part in everything that's going on?

0:21:160:21:18

Are there any limits to what she can do there?

0:21:180:21:21

She's learnt to finger knit...

0:21:210:21:24

She's learnt a lot of things there, like making crafts and whatnot.

0:21:240:21:27

The only thing she might struggle with is

0:21:270:21:30

if they were playing games that involved a lot of fast

0:21:300:21:32

running and jumping - she'd just be a bit slower.

0:21:320:21:35

Ah!

0:21:350:21:37

Oh, there you are.

0:21:370:21:39

So, we've had a rule here that any time Ava needs help,

0:21:390:21:43

she will ask for it - don't push help onto her.

0:21:430:21:46

Because she needs to be independent, like any other child.

0:21:460:21:49

Last year, in August, she came on a Brownie holiday with us

0:21:490:21:52

for a whole week.

0:21:520:21:54

Her mum came with us, but Ava didn't treat her mum as her mum.

0:21:540:21:58

Her mum was just one of the other helpers.

0:21:580:22:00

She did everything that all the other girls did.

0:22:000:22:03

We went swimming, we went walking, we made things.

0:22:030:22:07

She had to cook and wash up like everyone else,

0:22:070:22:10

and that was brilliant.

0:22:100:22:11

And she's doing that at home now as well.

0:22:110:22:14

There are two sides to this, really.

0:22:180:22:20

There are what the centre has done for Ava,

0:22:200:22:24

-and what they've done for you.

-Yeah, yeah.

0:22:240:22:28

I'll always be grateful for what they've done.

0:22:280:22:31

I don't think she'd be as happy, independent, loving, content,

0:22:310:22:37

if she hadn't have gone there.

0:22:370:22:38

Shirley's wish for her daughter was that she could go to

0:22:390:22:42

a mainstream school.

0:22:420:22:44

And the institute has had such a positive impact on Ava's life,

0:22:440:22:48

that she's started part-time in a primary class,

0:22:480:22:51

and will soon be going full-time.

0:22:510:22:53

Don't help me!

0:22:530:22:55

My aim for Ava is to live as happy and independent a life as possible.

0:22:550:22:59

She's had a great start.

0:22:590:23:02

I don't think my life would be as happy either,

0:23:020:23:05

and I'm very proud of her.

0:23:050:23:07

I couldn't wish for a more happy, beautiful,

0:23:080:23:12

confident, independent daughter.

0:23:120:23:15

I never thought it would be possible for her to reach the way she is now.

0:23:150:23:19

The vast majority of people would never dream of claiming more

0:23:280:23:31

benefits than they're entitled to.

0:23:310:23:34

A tiny number are not so honest, but they do have a big effect.

0:23:340:23:38

Benefit fraud costs the UK taxpayer £1.2 billion per year.

0:23:380:23:43

There are those determined to protect the public purse, though.

0:23:430:23:47

Across the UK, investigators are using surveillance stings

0:23:470:23:50

to identify people who are abusing the system.

0:23:500:23:53

Blackburn mum-of-seven Cleo Embley was one such person.

0:23:540:23:59

We received an anonymous tip-off

0:24:020:24:04

to the benefit fraud hotline for Cleo Embley.

0:24:040:24:08

She was, at the time of the allegation in September 2011,

0:24:080:24:14

in receipt of income support for herself and seven children.

0:24:140:24:19

Yeah, it's here, yeah.

0:24:200:24:21

Income support is there to help people who are unable to work

0:24:220:24:26

because they are sick or disabled,

0:24:260:24:27

or people on a very low or no wage who have dependents.

0:24:270:24:31

She was getting income support on the grounds that

0:24:340:24:36

she was looking after her dependent children and couldn't work,

0:24:360:24:40

and that she lived alone in a local authority house,

0:24:400:24:43

for which she was receiving housing benefit of £75 per week.

0:24:430:24:49

Roy and his team at the Department for Work and Pensions

0:24:490:24:52

contacted the local council to ask for their help in their enquiries.

0:24:520:24:56

The details we had on her original claim form that were

0:24:590:25:02

submitted to us, that she was a single parent,

0:25:020:25:05

she wasn't working, she had dependent children,

0:25:050:25:07

and that she was supposedly living at this address

0:25:070:25:10

as a single parent on her own.

0:25:100:25:13

So, on paper, everything looked above board,

0:25:130:25:16

but Roy had been tipped off that something wasn't right.

0:25:160:25:19

The allegation was saying that she had a partner living with her

0:25:210:25:26

who was in gainful employment.

0:25:260:25:29

If the allegation was correct, that she was living with a man who

0:25:310:25:34

was working and could support her, this would mean that Cleo Embley

0:25:340:25:38

was not entitled to the benefits she was claiming.

0:25:380:25:41

So we did the usual background intelligence checks using

0:25:440:25:48

Social Security Fraud Act powers to look at bank account statements,

0:25:480:25:52

and checking with local authority records, schools

0:25:520:25:56

and getting birth certificates,

0:25:560:25:58

seeing who the father of the children were.

0:25:580:26:01

Our background checks gave rise to believing that

0:26:020:26:06

the allegation in this case was potentially correct.

0:26:060:26:11

But what they really needed was concrete proof that a partner

0:26:110:26:14

was living with her and that he was working.

0:26:140:26:17

In order for us to actually confirm for sure that she had

0:26:170:26:22

a partner living with her, we conducted a period of surveillance.

0:26:220:26:26

Cases that try to prove a couple are living together

0:26:290:26:31

are quite common, but are very labour-intensive.

0:26:310:26:34

They can take months to reach a resolution.

0:26:340:26:37

Cleo Embley and her partner were under surveillance

0:26:400:26:42

for a period of four weeks.

0:26:420:26:44

During that time, we saw her partner leaving the house in the morning

0:26:470:26:52

and at night-time, and also coming back to the house

0:26:520:26:55

after a shopping trip,

0:26:550:26:57

so they were behaving as a married couple,

0:26:570:27:02

and he was going out to work.

0:27:020:27:05

This provided Roy and his team with enough evidence to prove that

0:27:050:27:09

Cleo Embley was living with someone who was working full-time.

0:27:090:27:14

That meant the benefits she was claiming were illegal.

0:27:140:27:17

In March 2012, police arrested Cleo Embley

0:27:220:27:26

and she was brought in for questioning.

0:27:260:27:28

When we went into the house on the day of the arrest,

0:27:330:27:36

Cleo Embley said that her partner didn't live in the house,

0:27:360:27:42

that he lived in the caravan at the side of the house,

0:27:420:27:45

which was out of view from the street.

0:27:450:27:48

This was news to us, so we videoed the caravan,

0:27:500:27:55

and it was quite obviously not used for sleeping in.

0:27:550:28:01

It was used more like a children's den.

0:28:010:28:04

So they interviewed the suspected partner separately

0:28:040:28:07

to get his side of the story.

0:28:070:28:09

The partner subsequently gave us

0:28:090:28:13

a witness statement saying that he'd lived

0:28:130:28:16

as a partner for 15 years and they'd had seven children together.

0:28:160:28:21

The authorities now had enough evidence to prove that

0:28:220:28:25

Cleo Embley was cheating the system.

0:28:250:28:28

Cleo Embley's status as a claimant was as a single parent,

0:28:320:28:38

who had seven dependent children,

0:28:380:28:40

and therefore was unable to seek work and was being paid income support

0:28:400:28:45

on the grounds that she was looking after dependent children.

0:28:450:28:49

In actual fact, we found that she was living with a partner,

0:28:490:28:52

and the partner had had a series of jobs,

0:28:520:28:55

both employed and self-employed,

0:28:550:28:57

and was in a position to financially support her and the seven children.

0:28:570:29:02

The team gathered the evidence and took the case to court.

0:29:020:29:06

In court, she pleaded guilty to all three charges

0:29:100:29:14

of section 111a of the Social Security Administration Act

0:29:140:29:18

of failing to notify of a change in circumstances dishonestly

0:29:180:29:21

by not mentioning the fact that her partner was in employment

0:29:210:29:25

and was living with her.

0:29:250:29:27

In total, Cleo Embley had cheated the taxpayer

0:29:270:29:30

out of £94,000 in benefit payments she wasn't entitled to.

0:29:300:29:35

Money intended for people who really need it.

0:29:350:29:38

At court, the judge was scathing of Cleo Embley's blatant fraud...

0:29:380:29:46

..and gave an appropriate sentence

0:29:470:29:49

according to the sentencing guidelines,

0:29:490:29:51

sending her to prison for six months.

0:29:510:29:54

She was sent to prison,

0:29:560:29:57

leaving behind her seven dependent children,

0:29:570:30:00

and this is a person previously of hitherto good character,

0:30:000:30:05

so the judge really sent a strong message to other fraudsters

0:30:050:30:08

that no matter what your circumstances

0:30:080:30:11

or the fact that you've got a clean record in the past,

0:30:110:30:16

if you steal money from the Government, and in her case,

0:30:160:30:19

nearly £100,000, the right outcome is a custodial sentence,

0:30:190:30:24

which is exactly what she got.

0:30:240:30:26

In 2014, Cleo Embley was evicted from her home

0:30:310:30:34

and has been disqualified from using social housing again.

0:30:340:30:37

She's been ordered to pay back the money she owes to the state.

0:30:400:30:44

It is being recovered, albeit on a very, very small

0:30:440:30:47

and slow basis, but that money will be recovered.

0:30:470:30:50

But it is a massive loss to the public purse.

0:30:500:30:53

Ironically, Cleo Embley could have legitimately claimed other benefits

0:30:550:31:00

from the state, such as Working Family Tax Credit,

0:31:000:31:03

but her cheating has meant she's lost

0:31:030:31:05

much more than she ever could have gained.

0:31:050:31:07

As a family, they're saddled with an overpayment of £94,000.

0:31:080:31:12

In Lincoln, a devious couple were stealing public money

0:31:180:31:21

from people who legitimately claim it to fund their own lifestyle.

0:31:210:31:26

Peter and Alison Childs' charity, which helped vulnerable adults,

0:31:270:31:31

had come under scrutiny,

0:31:310:31:32

following allegations that they had stolen benefit money

0:31:320:31:35

from the very people they were supposed to be helping.

0:31:350:31:39

This is the hub of where everything happened.

0:31:390:31:41

This is the building we searched on two or three occasions,

0:31:410:31:45

and where all the hundreds and thousands of documents came from

0:31:450:31:48

that eventually sealed the Childs' fate.

0:31:480:31:52

But those searches had found no bank statements,

0:31:520:31:54

so DC McGill and her team had to get access to all of the Childs'

0:31:540:31:58

personal and business bank accounts.

0:31:580:32:01

We can't do that just by ringing the bank.

0:32:020:32:06

We have to approach a Crown Court judge to ask him to provide us

0:32:060:32:12

with an order to serve on the banks

0:32:120:32:15

to allow them to hand the accounts to us,

0:32:150:32:19

so that involved quite a lot of work.

0:32:190:32:22

None of the money has been used to

0:32:220:32:24

settle the bills of those service users

0:32:240:32:26

and none of it has been returned to them.

0:32:260:32:28

After two weeks John's

0:32:280:32:29

team had their hands on the documents for all the Childs'

0:32:290:32:32

bank accounts.

0:32:320:32:33

There were thousands and thousands of pages of transactions over

0:32:330:32:37

the course of five years.

0:32:370:32:39

One of the main things I was looking for, cos they were taking so much

0:32:410:32:45

cash off the service users, was cash going into those business accounts.

0:32:450:32:50

So that they could pay the utility bills of the service users.

0:32:510:32:57

And there wasn't any cash going into those business accounts.

0:32:570:33:01

I think there were signs that Peter Childs knew that he had done

0:33:050:33:09

something wrong because he would occasionally say,

0:33:090:33:11

"This doesn't look very good, does it?"

0:33:110:33:13

But then he would soon backtrack and become confident

0:33:130:33:16

and make confident excuses as to why he'd taken cash.

0:33:160:33:20

They were scamming the victims in a number of different ways, really.

0:33:240:33:28

They'd taken cash as utility maintenance payments from

0:33:280:33:32

the victims and then spent it upon themselves.

0:33:320:33:35

There was also allegations that they'd taken

0:33:350:33:39

part of some of the service users' disability living allowance.

0:33:390:33:45

It was also where they'd been keeping

0:33:450:33:48

the savings for the service users.

0:33:480:33:50

And they'd taken that home, as well.

0:33:500:33:53

It appears that they're lying to the service users about what

0:33:530:33:58

they're going to do with this cash.

0:33:580:34:00

And then they're taking the cash from them and using

0:34:000:34:03

if for something else, which is fraud rather than straight theft.

0:34:030:34:07

This was benefit money which belonged to the adults with learning

0:34:090:34:13

disabilities who trusted the Childs to use it to pay their bills.

0:34:130:34:17

But John's searches revealed other evidence of fraud.

0:34:170:34:21

The investigation was going well.

0:34:250:34:27

But at this point it started to snowball.

0:34:270:34:30

We started to be able to put some figures to the allegations and

0:34:300:34:35

it was quite clear that hundreds of thousands of pounds had been stolen.

0:34:350:34:39

John's team notices lots of transactions to a company

0:34:420:34:45

called Black Knight Security.

0:34:450:34:47

A company that had been set up by Peter Childs.

0:34:470:34:50

I added up all of the money that had been

0:34:520:34:55

transferred from the MENCAP accounts

0:34:550:34:58

to Black Knight Security.

0:34:580:35:01

And it came to over £100,000.

0:35:010:35:03

And there was absolutely no reason for MENCAP to pay that money

0:35:040:35:09

to Black Knight Security.

0:35:090:35:10

In fact,

0:35:100:35:12

I couldn't find any evidence that Black Knight Security ever traded.

0:35:120:35:16

Although Mr Childs said it did in a very small way.

0:35:160:35:19

It looked like this company had been set up as a way of transferring

0:35:230:35:26

money from the charity to make it look legitimate.

0:35:260:35:30

But in the accounts they discovered something even more shocking.

0:35:320:35:36

A wage for someone that no-one had ever heard of.

0:35:360:35:39

It turned out they were payments to Peter Childs' mistress.

0:35:390:35:43

With whom he had a son.

0:35:430:35:45

She told me she had worked at the Childs' home address looking

0:35:450:35:49

after their horses and their dogs and general homecare.

0:35:490:35:53

But she was being paid a wage.

0:35:530:35:56

She was completely unaware this wage was coming from the charity MENCAP.

0:35:560:36:00

Not only did the evidence reveal the benefit money was being

0:36:020:36:06

used to pay for Peter's secret family...

0:36:060:36:08

..the Childs were also using it to fund their own lifestyle.

0:36:100:36:13

They bought a holiday lodge and horses for their children.

0:36:140:36:17

All that was left was to prove that Peter and Alison Childs knew that

0:36:200:36:24

what they were doing was a deliberate act to defraud the charity.

0:36:240:36:29

I think the business accounts certainly nailed them.

0:36:290:36:33

When we interviewed them about those business accounts,

0:36:330:36:36

we interviewed them about the signature of the auditor

0:36:360:36:42

and Mr Childs said he didn't know who signed those accounts.

0:36:420:36:47

In Alison Childs' second interview she admitted to

0:36:470:36:52

signing off the annual accounts

0:36:520:36:54

as the financial auditor

0:36:540:36:56

and basically sign as David James who we later found out didn't exist.

0:36:560:37:01

Having admitted forging the accounts and with witness statements

0:37:020:37:06

supporting the evidence, the police now had their case.

0:37:060:37:09

This is one of the biggest cases that I've dealt with in Lincoln.

0:37:130:37:16

It is a very big case.

0:37:160:37:18

It's a serious case and one of considerable complexity.

0:37:180:37:21

In November, 2012 the Crown Prosecution Service said

0:37:230:37:27

police had enough evidence to charge both Alison

0:37:270:37:29

and Peter Childs with fraud and theft.

0:37:290:37:32

This was an exploitation by Mr and Mrs Childs...

0:37:340:37:38

..of the vulnerable people who were members of the Lincoln MENCAP...

0:37:400:37:44

..society.

0:37:450:37:47

And it was also an exploitation by them

0:37:470:37:51

of the business of Lincoln MENCAP, as well.

0:37:510:37:54

Because they were clearly taking money from the business

0:37:540:37:57

of Lincoln MENCAP as well as from the service users.

0:37:570:38:02

Some of them would have been aware

0:38:020:38:03

but their level of understanding is limited.

0:38:030:38:06

Some of them wouldn't know the difference between £10 and £10,000.

0:38:060:38:09

And I think that is why they were preyed upon in the first place.

0:38:090:38:13

As a result of our investigation and what had happened here, the Lincoln

0:38:150:38:19

MENCAP charity was disrupted and stopped functioning as a business.

0:38:190:38:25

It's now closed down.

0:38:250:38:27

The building itself has been taken over by another company.

0:38:270:38:31

The bogus charity run by the Childs may be defunct but there

0:38:340:38:37

are many more genuine organisations helping vulnerable adults.

0:38:370:38:42

Of 400 grassroots, local organisations,

0:38:420:38:46

all provide a range of services to individuals and families.

0:38:460:38:51

The overwhelming majority of which is high quality

0:38:510:38:54

support and makes a real difference to families in the here and now.

0:38:540:38:58

Unfortunately we still see negative attitudes towards people with

0:38:580:39:01

a learning disability.

0:39:010:39:04

It can range from bullying,

0:39:040:39:05

harassment, right through to hate crime.

0:39:050:39:08

So I think we and a number of other organisations do a good job

0:39:080:39:12

supporting those individuals.

0:39:120:39:14

I think it's important to remember the individual actions of

0:39:150:39:20

Mr and Mrs Childs should in no way be taken as representative

0:39:200:39:24

of the 400 organisations that work across the UK.

0:39:240:39:28

The vast majority of those are staffed by hard-working,

0:39:280:39:32

long-serving, dedicated support staff.

0:39:320:39:35

It's important we recognise and remember the work they do

0:39:350:39:40

and not focus on the actions of two individuals.

0:39:400:39:43

Which were about to be exposed for all to see.

0:39:460:39:49

In January 2014 Peter

0:39:540:39:56

and Alison Childs were brought to trial at Lincoln Crown Court.

0:39:560:40:00

Peter Childs was charged with numerous theft and fraud offences.

0:40:020:40:06

He pleaded guilty to one of the fraud offences initially.

0:40:060:40:10

Not guilty to everything else

0:40:100:40:11

and Alison pleaded not guilty to everything.

0:40:110:40:14

Hence the start of a six-week trial.

0:40:140:40:16

If the Childs had admitted the charges at this stage it would

0:40:210:40:24

have avoided the cost of a trial with a jury at the crown court.

0:40:240:40:28

All of which is paid by you and me, the taxpayer.

0:40:280:40:31

Mr Childs was quite confident throughout. So was Mrs Childs.

0:40:320:40:37

And it was only towards the end that they began to accept what

0:40:370:40:42

they'd probably done.

0:40:420:40:44

The court heard that in 2007 one couple with learning

0:40:470:40:51

disabilities entrusted £43,000 of their savings to the Childs.

0:40:510:40:55

You have to look at theft.

0:40:580:41:01

Theft is theft but this is the worst kind of theft I think I've

0:41:010:41:04

come across in 40 years.

0:41:040:41:06

You have to look at the vulnerability of the victims

0:41:060:41:09

in this.

0:41:090:41:10

I don't think they have an awful lot in their lives.

0:41:100:41:15

And what they did have, these people took it off them.

0:41:150:41:18

In total the Childs defrauded their victims out of over £200,000.

0:41:210:41:25

And were jailed for three years each.

0:41:250:41:28

But the impact of this case remains.

0:41:310:41:33

For families like Darren Leek and his mum, Janet.

0:41:330:41:36

One of the youngsters did say to us,

0:41:390:41:43

"If Pete had needed money, I would have given him it.

0:41:430:41:47

"He didn't have to steal from me." And that's how they thought of him.

0:41:470:41:52

I thought he was really a genuine person.

0:41:520:41:58

I can't believe it, you know?

0:41:580:42:02

That he's done it to all of us, the people.

0:42:020:42:07

The pair of them were mean and calculating

0:42:070:42:10

and a nasty piece of work, really.

0:42:100:42:12

The Childs' assets were frozen in 2012.

0:42:130:42:16

And in the autumn of 2014 a court will decide how much the couple have

0:42:160:42:20

benefitted from their crimes and just how much they have to pay back.

0:42:200:42:24

The trust issue is a big thing. Lincoln MENCAP ran like a family.

0:42:260:42:31

All the victims and victims' families

0:42:310:42:33

we spoke to were fully on board with Peter and Alison Childs.

0:42:330:42:36

They treated them like members of their own family.

0:42:360:42:38

They trusted them implicitly.

0:42:380:42:40

So when this all came out

0:42:400:42:42

and the investigation started it really hit them hard.

0:42:420:42:45

It's left a scar on everybody.

0:42:450:42:48

Cos these youngsters, who are they going to trust?

0:42:480:42:51

They're not going to trust, are they?

0:42:510:42:53

'Like I said to my son, "If you have a problem, go to Pete with anything."

0:42:530:43:00

'He reminds me, "You told me'

0:43:000:43:03

"he was wonderful, you know?"

0:43:030:43:04

Normally your family believe you, don't they?

0:43:060:43:10

We were wrong and everybody was wrong.

0:43:100:43:13

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