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Laurence Lee & Co
Miss Waters
Our Ref: LML.BW.JW.NEI 529 Woot Darby Road
Tuebrook
.
18” September 2012 Liverpool L13 BAA
United Kingdom
URGENT.
By Fax: ¢ RO
Mr Andrew Bole
Cartwright King Solicitors
DX 14123 Liverpool
Dear Sirs,
Re; REGINA -V- ANNE NEILD
LIVERPOOL CROWN COURT T2012 0930
FOR TRIAL 17™ OCTOBER 2012
We refer to the above.
We now enclose copy application for disclosure in this matter which was
forwarded to Liverpool Crown Court today.
We trust this assists but should you wish to discuss any aspect of same then
please do not hesitate to contact us.
‘emai info@iaurencelscsolicitors.co.uk whew faurenceleesctettors.co.uke
Laurence Lee & Co Solicitors (incorporating Gyr Carr Laurence Lea & Co)
Laorence M Lee LLB, Hons John F AbIeMt LLB. Hone Alison E Sharples BA Hors 4
Régulates by the Solicitors Regulation Authority
vganation’s S88 No 00D4a725
ceeniat
fener
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IN THE CROWN COURT AT LIVERPOOL
REGINA
“Ve
ANNE NIELD
APPLICATION FOR DISCLOSURE
The Charge
1. The defendant faces an Indictment containing one Count, namely False
Accounting, contrary to s.17 of the Theft act 1968.
2. The defendant denies that she (a) acted dishonestly and (b) had an
intention to gain or cause loss to any person as set out in her Defence
Statement (Appendix 1).
Ai it
3. This application is made under s.8 of the Criminal Procedure and
Investigations Act 1996.
4, The defendant has sought, and been refused by letter dated 28"
August 2012 (Appendix 2), disclosure of the following:
a. Details of complaints and investigations into the Horizon
computer system;
b. Access to the Horizon computer system used by the defendant
between the installation of the system in 2005 ~ 6" January
2012 for the purposes of expert examination by a Forensic
Accountant.
5. The defendant now seeks an Order of the Court for disclosure of or
access to the items listed at paragraph 4.a. and 4.b, above.
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Background
6. At the relevant time the Post Office held Sub-postmasters/mistresses
personally liable for any monetary losses incurred by the Post Office
they managed.
7. Horizon is a computer accounting system used by the Post Office. It
was introduced to the defendant's Past Office around 2005. Prior to
that the accounting system had been paper-based.
8. The defence are aware from articles in the Press and communications
from the House of Commons (Appendix 3) that the Horizon system has
been the subject of much controversy over the past few years and that
a significant number of Sub-postmasters allege that the Horizon system
published incorrect losses on the system. Further, that they have in
many cases been wrongly convicted of False Accounting. The issue is
serious enough to have warranted the involvement of Members of
Parliament, the establishment of an action group ‘Justice for Sub-
postmasters’, the launch of a class action against the Post Office and an
agreement by the Post Office in June 2012 to appoint an independent
review of some cases.
9. The defence are therefore confident that the Prosecution have in their
possession, or easily accessible to them, records of complaints and
investigations into the Horizon system.
Reasons for Application
Dishonesty
10. The first relevant issue is the question of dishonesty; in particular the
subjective test expounded in the case of R. v. Ghosh [1982] 75
Cr.App.R. 154.
11. The Prosecution case is that the defendant dishonestly attempted to
disguise losses raised by the Horizon system by attributing monies from
other charity accounts to the deficit, rather than re-paying it herself. In
fact, we understand that the Prosecution case is that the defendant
took the money which created the apparent loss on the Horizon
system.
12. When the Jury consider whether the attribution of monies in this way
by the defendant was dishonest it is a relevant consideration whether
or not the losses were ‘real’ and whether they were attributable to her.
If the losses were the result of a computer error the Jury may well take
2
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avery different view of the defendant’s mental state than they would if
she had taken the money.
intent to gain or cause loss
13. The second relevant issue is the question of the defendant’s intention;
whether she intended to make a gain for herself or cause loss to
another.
14. If the apparent losses were caused by the defendant taking money
from the Post Office, a Jury will have little difficulty in concluding that
she covered the losses in order to make a gain for herself. Similarly, if
the apparent losses were actually incurred, for example as a result of
the defendant’s human error, the Jury may come to the conclusion that
she covered the losses in order that she did not have te re-pay the Post
Office for losses caused as a result of her errors. However, the Jury may
take a different view of the defendant’s intention if the apparent losses
were the result of a computer error such that the defendant neither
gained in fact (by taking the money) nor had any reason to believe that
she owed the money as a result of her own error.
Submissions
15. it is submitted that material which suggests that the Horizon system
has accounting faults is therefore relevant to, and of potential
assistance to, the defence for the reasons outlined at paragraphs 12-14
above.
16. It is submitted that access to the Horizon system by a defence Forensic
Accountant is necessary in an effort to detect faults in the Horizon
system used by this defendant. Further, to identify where the apparent
disguised losses occurred and whether they can be attributed to this
defendant. The case against the defendant both at Trial and in any
subsequent sentence would be very different if it can be established
that the defendant did not take the money herself.
17. Furthermore, if a forensic examination of the Horizon system used by
this defendant reveals that the losses were incurred as a result of
computer error it may be that the Prosecution review the decision that
pursuance of this case is in the pubic interest.
Charlotte Atherton 12" September 2012
Exchange Chambers
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.} ¢
IN THE CROWN COURT AT LIVERPOOL
REGINA
-V-
ANNE NIELD
DEFENCE STATEMENT
Charge: False Accounting, contrary to s.17 of the Theft act 1968.
Date of PCMH: 9" August 2012
Solicitors: Lawrence Lee & Co
529 West Derby Road
Liverpool
L13 SAA
General Nature of the Defence
1. The defendant denies:
(a) that she acted dishonesty; or
{b) that she had an intention to gain or cause loss to any person.
Matters upon which the defendant takes issue with the Prosecution case
2. The defendant takes issue with the prosecution case in the following
ways:
(a} The defendant accepts that losses were shown on the Horizon
computer system fram 2005. The defendant does not know how
the losses were incurred, The defendant now believes that such
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losses may have shown as a result of failures in the Horizon
computer system;
(b) initially the defendant and Angela Sefton repaid the apparent
losses from their own money;
(c} The defendant accepts that as time progressed she was unable
to maintain the repayment of the apparent losses. At this stage,
the defendant accepts that she delayed entering the value of
some cash or cheques onto the Horizon system. Latterly, the
defendant admits that she delayed crediting payments in by
Animals in Need. However, this was not done with a dishonest
intent or with any intention to make a gain or cause the
complainant any loss. Rather, it was a desperate attempt to
make good the apparent losses on the system, At no stage were
Animals in Need ever deprived of any money they paid in,
rather, the crediting of it to their account would be delayed.
({d) When the first shortfall showed on the Horizon system (£4000),
Anne Nield immediately notified Ali Asker, the Sub-Post master.
The Post Office was contacted and a representative attended
but was unable ta locate where the shortfall had arisen. Mr Ali
Asker became very angry about the situation. The defendant
found Mr Asker very intimidating. She lives on her own. She
became aware that Mr Asker had been suspended for a number
of months following an allegation assault. As a result of her fear
of Mr Asker, the defendant was too afraid to tell him of the
difficulties with the apparent losses, The defendant was also
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an
afraid to notify the Post Office as a result of the scale of the
problern.
3. The defendant requests disclosure of the following items:
{a) Any material that points towards other suspects in this case;
{b} Details of any bad character of any prosecution witness;
{c) Details of complaints and investigations into the Horizon
computer system.
4. The defendant takes issue with all evidence that is inconsistent with
the terms of this defence statement.
SIGNED ....
ANNE NIELD
DATED...
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Lawrence Lee & Co Solicitors
DX 10825 Leicester
DX 14123 LIVERPOOL Email:
Secure Email:
Date: 28 August 2012
Our Ref: AB2/24518
Your Ref:
Dear Sirs,
Letter to Defence where there is no material to disclose - ongoing disclosure (Defence
Case Statement}
Rv Anne Nield
Court and Next Hearing: Liverpool Crown Court ~ 17% October 2012
Disclosure of Prosecution Material under Section 7 Criminal Procedure and Investigations
Act 1996
Ihave considered your defence statement dated 9% August 2012 provided under section 5
Criminal Procedure and Investigations Act (CPIA). Under section 7 CPIA I am required to
disclose to you any prosecution material which has not been previously disclosed and
which might reasonably be expected to assist your defence, as described in your
statement,
On the basis of the defence statement that you provided, I have not identified any further
prosecution material which is disclosable to you in accordance with the CPIA.
Specifically in relation to the points raised in your statement:-
1, There were no other suspects in this case, and no material relating to the same.
2. None known
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3. Your client is charged with false accounting by failing to make entries onto the
Horizon system regarding the deposit slips found, and thus the offence has
occurred outside of the system. Material relating to the Horizon system is therefore
not deemed disclosable at this time.
If you consider that there is other prosecution material which might assist your defence
and which has not already been disclosed, please let me know and I will reconsider my
decision in the light of any further information that you provide. Alternatively, you may
apply to the court under section 8 CPIA. The court will assess your application in the light
of your defence statement,
if you have any query i connection with this letter, please contact me.
Yours sincerely
Andrew Bole
Solicitor
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. From: The Rt. Hon. James Arbuthnot, MP,
Aah
HOUSE OF GOMMONS
LONDON SWIA 0AA
Miss Bridget Waters
Laurence Lee & Co Solicitors
520 West Derby Road
Tuebrook
Liverpool L13 BAA
Dear Miss Waters,
Re: Your ref BW. jeld
Ann Nield of 10 Buckingham Rd, Liverpoo! L9 4RD
Thank you for your letter of 16 August 2012 to Mr Arbuthnot. I am afraid Parliament is currently in
Recess, and Mr Arbuthnot is not at Westminster at present, I am able to answer your queries on his
behalf, and hope this letter may be of help to you.
Mr Arbuthnot has met with senior Post Office personnel, and persuaded therm to appoint independent
forensic accountants to investigate a number of cases where SubPostmasters and mistresses believe
that they have been wrongly accused of false accounting. These investigations are now underway,
Should you client wish her case to be considered, she must first approach her own constituency MP,
who is Steve Rotheram MP. There is a Parliamentary convention which does not permit an MP to act
on behalf of another MP’s constituent, and so Mrs Nield must contact Mr Retheram and let him know
that she wishes her case to be passed to Mr Arbuthnot’s office so that we may pass it on. I know this
is circuitous, but MPs do not appreciate other MPs interfering with their own constituency matters,
and so the convention is strictly observed.
Secondly, she must be aware that the details of her case will be passed to the Post Office. They are
passing details on to the investigators, and need these details se that they can gather the relevant
data which the investigators need for their work, If she would like to pursue this course of action, she
does need to be aware of this.
Please come back to me should you require any further details as I am happy to help.
“Janet walker
fied.of tames Arbuthnot MP
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- MPs raise concerns over post office
payment system
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MMPs meet with Post Office officiats to raise subpostmasters' concerns aver a payment
system that they say has caused inaccuracies for which staff are charged.and held
legally accountable.
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‘A group of MPs ted by the Conservative James Arbuthriot presented a number of cases where
Subpostmasters have been charged with theft and held responsible for false accounting that they
say are the fault of the system they use. Latest UK articles
Baralymptes GB: Wha to wate today
‘The Horizon system was introduced in 2000 and Is used to process Royal Malt services by those’
Psralyenpc archive: improved fact
jhaing a post-office within a shop. But since its introduction, subpastmasters has jained
running post-office wi na shop. But since its ntrod pastmasters have compli aralyeple Games: a shared Nstory of tra,
xX that the system conststently records errars in accounting which they are unable to correct, and Andre Steauss blames 008 fon ter qu
that they are held tidble for the subsequent recorded tosses. {i the ola fc te Obey a
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(One subpostmaster was charged with theft and told to pay back £36,000, despice calling the ovesuitevin nenys weumwene vee
system's support services when she realised that errors were being processed. -Aructe Tags Channel 4 News, OR
At first thay took money out of her wages to make up the.difference in the accotinting errors, and
then took her to court after an auditing visit.
“Lremortgaged my house, borrowed and was generously siven enough méney to repay the post
office in futl in order to get them to drop the theft charge,” she sald. "I had to plead guilty.to 14
counts of fatse accounting in (the) Crown Court and only excaped prison because over 70 people
turned up to support me,” .
HPs are calling for disputed cases to be exemined individually through a robust, transparent
process, One of the probiems raised by the campaign group, Justice for Sukpostmaskers Alliance,
http:/Avww.channel4.com/news/mps-raise-concerns-over-post-office-payment-system — 30/08/2012
pl :
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. + MPs yaise concerns.over post office payment system - Channel 4 News Page 2 of 2
ig tat subpestmasters’ appeals against theft re dealt with solely by the Post Office, with no
independent arbitrator.
tts in the interests of everyone involved - constituents, their Ps, aad Pest Office Ltd - to get
nis matter serolved,” safd James Arbuthnot MP, who said he vas positive abavt the meeting's .
paula Vennets, Post Office Limited chief executive said: “The Fost fice continues to have
absolute confidence in the robustness and inkapity of Its branch accounting Processes. We have
+ po hesitation in agreeing to an external review of these fev individual cases that nave been
raised with us by iar Arbuthnot and some of his fellow MPs.”
lan Bates ‘tom the Justice for Sebpostmasters Alliance welcomed that the ssue was eing
rated, “but unfortunately 1 only seems to be concentrating on one particular area," he told
_Channet 4 News. “Theyre purely tooking at false accounting - it is only one: part of what's wrong:
with Horizon.” . .
‘He lists issues to do with’ lack of training, lack: of access to the systern, sebpostmasters liability
for losses and the faflure of the system to produce en audtt Wail. :
A80UT NETWORK “Yortter
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Nowe > MP Welcomes Review into Post Office Naaiby weap
Comenority v Horizon Accounting System
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‘Snevesloccrvebstey MP Welcomes Review Irito Post Office Horizon
Homed bor cosy Severe Accounting System
Romsea Letsure Fark ‘ y
t . Lacol MP, Graham Stuart, welcomes this weak’s promise by the Pos! Office thot if
Rowen “nil undertake an exieradl review of the Hoftzon Post Office accounting system.
Werte Ts ansouncement folons pres aul an ine FoH ice by Ms, neucing
“ ‘Groham,
ea eeBegeg wi The Horizon accounting system, asmd in sub rast alffcas, has given tise fo
% BY controversy over the pas! few years, with many Sub-posimasters being accused
ii AT a ‘of foud and Ineth.
FUg@se Al amecting in Patoment on Monday night MPs robuslty questioned Post Olfice
VUES (ta Chaimon, Alce Perkins, ond Chief executive, Povla Venne, on Ihe relobily
ofthe system.
At the meeting the Post Office Choiman and Chiel Executive agreed fo
exornine incivicuelly coses whore Sub-postmarters have been beld accountable CINE EMA
for monetary losses, which many cla is the fault of the Fos! Office's electronic NG
accounting system, Horizon, List INGS
Mente hielne at
Graham said: " Ihave heart! from severc! Sub-posimastess who belisye Hottzan i
to blome for occaunting errors which the Pos! Office forces thera to pay back
personally. he lasses afer't repaid the Pos! Otlics may well prosecute fhe Sub-
‘postinaster for false accountin
Graharn went on fo say:"T havé grave concems about Hodzon anil seems there
ore numorous waiys in vnich mvstakes could oceur, and nol alot heme would be
dhe Sub-postmaster's fouit. I wrots io the Post Office and to the Miniter wih
resporsinity for Pentel Alfais choot Kofeon, bul both yale back to ray they had
absolute confidarice in it, So I'm pleased thet following pressure from me and
other MPs the Post Office has now been pushsd into looking al Horizon to see if
there ore: ony facheicol probes with it. Sub-post offices ore ot the head of our
communities provicing many of our Much-needad services, and the lost thing we
your ld “on! people nol com fowerd fr Ih reportan wk because they dont
feel the Post Office would deo! with thern in a just ond tolr monner.”
Easy Access
Pavia Vennalls, Chief Executive of the Past Olfico scid: “The Pott Olfice continves
ed mapot ana fo hove absolyte confidence in.the robustness ong integAly of its branch
‘accounting processes, We have na hesitation in agresing lo on extemal review
of these few individual cases that have been roited wih us by Mr Aroulhnot ond
some oli fellow MPs,”
Camas.
Signup tothe Acdyourown Bonn, .
SteeHbie amazing” CORmEDLOT yet,
newnistar “Giles
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