Finance manager jailed for £207k fraud against nursery employer

The finance manager of an Essex children’s nursery has been jailed for over two years after defrauding her employer of over £200,000 for seven years

Kerry McGavigan, 37, from Leigh, Essex, was sentenced at Basildon Crown Court on 1 April after admitting to three counts of fraud by false representation before her trial was due to take place.

She worked at The Enchanted Wood Nursey in Benfleet where Essex Police believe she stole £207,000 in fraudulent payments while having full control of the nursery’s accounts.

McGavigan faked invoices for work that had never been done and inflated invoices for legitimate work that had been carried out to transfer the money directly to herself. Additionally, she spent £20,000 on a company credit card ‘incorrectly’.

Members of staff at the nursery eventually became suspicious of McGavigan when the accountants could not find documentation for the companies completing the work for the nursery. These members of staff aided the police in their investigation.

In one instance McGavigan completely made up an electrical contracting business, claiming it changed the lighting system at the nursery to pocket £20,000. However, the lighting system was never changed.

Another example showed her transfer £8,000 for the security system to be changed, although this should have cost a maximum of £2,500. McGavigan was dismissed after this transaction was uncovered.

McGavigan’s bank account was analysed by Essex Police which found she had transferred £142,477.35 to herself since November 2021, as well as sending £25,173.65 to a children’s savers account.

She was arrested in January 2024 and initially pleaded not guilty to three counts of fraud.

Detective constable Mathew McGarry from Essex Police’s economic crime unit said: ‘I remain in awe of the members of staff who came forward, who effectively worked under McGavigan, to present their concerns.

‘At all times, they have been nothing short of incredibly helpful and patient as this complex investigation progressed.

‘I know McGavigan’s actions have come at a great cost – both financially and mentally – to the nursery and its hard-working staff and they have always been honest with their families about the ongoing investigation.

‘I sincerely hope that the sentence, which entirely reflects McGavigan’s offending, can help them continue to move forward and build upon their successful and responsible business.’

McGavigan was sentenced to a jail term of two years and six months.

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