Council Worker Gambled Away £493K Stolen from Housing Benefit Scheme

A long‑serving benefits officer at Dartford Borough Council who swindled nearly £500,000 by submitting fake housing‑benefit claims has been spared immediate custody despite the scale of her offending.

The defendant, 44‑year‑old Joella Preston (also known by her married name Waghorne), admitted to abusing her position over a nine‑year period. Between September 2014 and July 2023 she submitted 15 fraudulent claims in the names of acquaintances, neighbours and friends, diverting approximately £493,487 into her account and that of her husband. 

Fraud Uncovered During Sick Leave Audit 

Preston had been employed at Dartford Council since 2001 and, by 2018, had been promoted to senior benefits leader, jointly working with Sevenoaks District Council on a shared revenue and benefits service. Her role included processing housing benefit claims and detecting fraud, yet she used her insider knowledge to circumvent checks.  

Investigators found that Preston suppressed entitlement letters for the fake claimants, exploited a known £2,000 threshold that triggered extra scrutiny for new claims, and manually processed payments to avoid automatic systems.  

The fraud came to light while Preston was on sick leave with anxiety in 2023, when a routine audit revealed a claimant receiving benefits long‑term who told staff he owned his home and had never claimed housing benefit. 

_{Preston at a hen party. (Image: Facebook May 2023)}

Court Hears of Trauma, Treatment, and Remorse

Court documents reveal that Preston’s gambling addiction was a major factor. She gambled around £776,938 and won £355,709 in online slot‑games, according to prosecution figures.  

Her lawyer, Christopher Johnston, told the court that Preston had endured personal trauma, estranged from her mother and unable to conceive, which may have made her vulnerable to addiction. He said she had shown “genuine and deep” remorse and already enrolled on a six‑week residential treatment course, with ongoing sessions via Gamblers Anonymous and Gamble Aware.  

Judge Cites ‘Exceptional’ Mitigating Factors

On October 13, at Maidstone Crown Court, Recorder John Brooke‑Smith acknowledged the “substantial” diversion of public funds and the impact on her former colleagues and the reputation of the council. However, he accepted that the mitigating factors were “unusually powerful and persuasive”, and suspended a two‑year sentence for the same period. Instead, Preston was ordered to complete 200 hours of unpaid work and 20 rehabilitation‑activity requirements.  

Councils Vow Stronger Safeguards After Scandal

The councils involved, Dartford and Sevenoaks, issued a joint statement confirming that the fraud involved Department for Work & Pensions funding, was uncovered following routine audits, and that investigations were assisted fully by Kent Police and the Crown Prosecution Service. Both councils say they have since tightened procedures to prevent a recurrence.  

The case highlights serious risks when employees with responsibility for fraud detection themselves exploit the system. It raises questions about internal controls, oversight in local government benefit schemes and the challenge of identifying and addressing staff‑drug or gambling addictions that may lead to fraud.

Preston faces confiscation proceedings that could jeopardise her matrimonial home. Her full recovery from gambling addiction and her compliance with rehabilitation orders will likely determine whether she avoids custody when the suspended sentence is reviewed.