Sunderland firm reveals devastation caused after trusted employee stole more than £21k from her bosses

Katie Wallace started working at Harry Burnicle Ltd in April last year and within weeks had started diverting the firm's cash into her own personal account.

Newcastle Crown Court heard between June 1 and September 2 she transferred £21,286 to her bank, in 31 fraudulent transactions.

Prosecutor Matthew Hopkins told the court when discrepancies were spotted Wallace claimed there had been innocent mistakes and made a series of excuses in a bid to cover her tracks.

Wallace, 31, of Aintree Road, Sunderland, who has never been in trouble before, admitted theft.

The court heard the cost of her offending to the family-run firn has been a "lot more than money".

A spokesman who read out an impact statement on behalf of the business, which was established in 1981, said Wallace's dishonesty was "planned and very complex" and added: "She was taking money in the full knowledge of the stress people were under."

The court heard one worker was made redundant, a senior staff member was hospitalised due to stress and the company's charitable donations had to be halted because of what happened.

The spokesman added: "I cannot stress enough the extent the fraudulent, deceitful actions have had on our business and families."

Jennifer Coxon, defending, said Wallace had not realised how much money she had put into her own account and there was no suggestion she lived a "lavish lifestyle".

Miss Coxon said: "She spent some money on private registrations. There was a holiday, it wasn't a luxury holiday.

"She lives in rented accommodation, she still has personal debt."

Miss Coxon said Wallace started taking money with the intention of paying it back but it became "out of control".

Miss Coxon added that Wallace, who is a mum, drove a 2007 registration car and spent money on days out, clothing and food but has "no assets".

Judge Sarah Mallett adjourned the case so Wallace could provide her legal team with more information on what the money was spent on.

The judge said: "I accept some of the money will have gone on day to day living expenses and modest expenditure like children's clothes and local holidays but it was also seem, without evidence to the contrary, that a much greater proportion must have gone on more extravagant living."

Judge Mallett said Wallace will be sentenced on April 8 and warned her: "You need to be prepared for the likelihood it will be an immediate custodial sentence and put whatever arrangements you need to put in place in place."

Wallace was granted bail in the meantime.