The former head of England’s biggest credit union altered details of thousands of members’ accounts and used a corporate credit card to rack up bills at luxury shops and hotels, a report has found.
Sue Davenport, chief executive of Leeds City Credit Union (LCU), also obtained loans totalling more than £100,000, mostly without evidence of approval or agreement.
Details of Mrs Davenport’s activities at LCU, which has 25,000 members, feature in an audit by Leeds City Council.
But after a three-year investigation by West Yorkshire Police, the Crown Prosecution Service (CPS) has recommended Mrs Davenport should not face criminal charges.
The investigation into Mrs Davenport – who was required to resign in 2008 by the Financial Services Authority – found she changed loan repayment dates on members’ accounts.
Auditors found this “manipulated” LCU’s accounts, so they looked much healthier than they were.
They also found she had spent £24,000 on a corporate credit card in 20 months, including £5,000 in one month on hotels and travel.
Auditors found no record of Mrs Davenport, pictured, reimbursing any costs.
They also found the card had been used to spend £552 at Harvey Nichols, £263 at John Lewis and £102 at Marks & Spencer.
Out of 280 transactions, only eight were backed by receipts.
LCU almost collapsed in 2009 when it emerged around £2m of toxic debt had gone unreported. It was only saved by an emergency bailout of £4m from public funds.
LCU then called in auditors to investigate Mrs Davenport’s actions.
In 2009, shortly after they had completed their work and uncovered a raft of serious concerns, she applied to be declared bankrupt.
Her debts of more than £90,000 included around £40,000 owed to the credit union.
She was arrested on suspicion of fraud in March 2010.
A police spokeswoman said: “A thorough investigation was conducted by West Yorkshire Police’s economic crime unit.”
She added: “Having taken advice from both the CPS and independent counsel a decision has been made not to continue with the investigation.”
Mrs Davenport declined to comment.