In the Stafford Crown Court
Sitting at DUDLEY TRIAL UNIT
POLOQ00623/0
NO I NAME FULLY BOUND I PAGE NO
FB)
I Hugh STACY FB-1 ~ TAT
2. Raj KALSI FB-3 8-24
3. Laurence George HUTCHINS (x 3) FB-2 25-34
4. Stephen William COTTIER “35 —36
5. Jonathan Michael BIRD 37
6. David Norman STONE ‘I 38
7. Philip George HUNT (x2) FB - 22 39-40
8. Anna Louise BUDSON 41
9. Peter Michael JONES (x 3) 42-44
10. I Timothy Mark PACKMAN 45 -
11. I Elizabeth Jayne REES 46 I
12. I Andrew FEARN I 47-48 “I
3. I Terence Robert MANSBRIDGE 49-50
14, David PIKE 51
15. Nichola Jayne HANSFORD 52
POL00062370
NO [NAME PAGE NO
16. Christopher John. ANDREWS (x3) 53-55 I
17. Lisa Ann DEANS (x2) FB - 23 56-57
18. David Paul RUGBRES FB - 21 58
19. Nicholas WALKER 59
(20. I Ashley Rhys DOWSETT » 60
21. I Mandy BUSHELL 61-63 ~
122. I Kevin ORGILL FB-17 64-66 I
23. Deborah Alison EDWARDS FB - 18 67-71 i
24. I Glyn BURROWS FB - 19 72-16 -
25. Margaret Ann PEARCE (x3) FB-7 77-88
26. I Shirley Jayne BATEY (x3) FB-8 89-103
27. I Sarah Jane BOARDMAN 104-105
28. I Elaine LIEVESLEY FB- 12 106 — 108
29. I Mark IRVIN FB-6 "109-112
30 Michact Joseph COOKSEY 12
31. I Steve GERATY (x2) FB-4 113-114
32. James G CONEY FB-5 115
33. I Shirley BROCKLEHURST 116-11
34. I Mary Elizabeth PEET 118-119
35. Douglas Paul BROWN FB - 13 120-124
36. I Stephen Charles I CARTWRIGET FB-14 125-139
37. I Gwen TALBOT FB - 15 134-133
38. I Pippa BARKER (x2) FB-16 134-151
39. Andrew wocD 152
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40. I Barry JAMIESON 153
41. I Colin Richard PRICE 154-156
42. I Manish PATEL FB - 24 157-211
43. Margaret Anne PEARCE FB-7 212
44. I Barbara Valerie CARY FB-9 213-214
(45. ILynn Patricia © GRABAM FB- 10 215-216
46. Helen Margaret ROGERSON FB-1i 217-218 I
I 47. I Robert Neil DAVIES FB-20 219-222 —
(48. I Nigel ROBERTS 223-224
49. I Claire Michelle PARKER 225-228
50. I Manish PATEL FB-24 229
31. I Raj KALSI FB-3 230
32. I Hugh Richard STACEY FB-1 231
POL00062370
Witness Statement
(CJ Act?1967, 89; MC Act 1980, ss 5A(3)(a)
and 5B, MC Rules 1981, r 70)
Statement of Hugh Richard STACEY
Age if under 18 Over 18 (If over 18 insert ‘over 18')
This statement (consisting of 7 (seven) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything, which I know to be false or do not believe true.
Dated the 23% dayof September 2003
GRO_
tam the Head of Travel Services for Post Office Ltd and have been performing this role
Signature
for approximately 5 years, though have been employed by the Post Office for
approximately 23 years.
Post Office Ltd first commenced offering foreign currency at our outlets in 1993 and I
have been involved with this enterprise since it's inception. The project was started in
partnership between the Post Office and a subsidiary of the Bank of Ireland called First
Rate Currency Services (FRCS). Foreign exchange was started at our outlets in a trial
at 20 sites in November 1993, a further 180 sites were brought online in April 1994 and
a full National nationwide role out was carried out in April 1995 where 647 outlets
offered a full ‘On demand’ currency service.
The Post Office has been in a contractual relationship with First Rate Currency Service
between November 1993 and March 2002 to provide wholesale currency to Post Office
Ltd. In March 2002, the Post office in Partnership with the Bank of Ireland formed a
joint venture company to run foreign exchange within the Post Office network. From
March 2002 until the present time, the joint venture company called First Rate Travel
Services (FRTS) has provided wholesale currency to the Post Office network.
Under the contractual obligations upon formation of the joint venture in March 2002, all
Signature Signature witnessed by M Patel
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POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
income generated from foreign exchange transactions are paid to the joint venture
company which then pays a rebate to the Post Office from transactions carried out on
it's behalf. Post Office Ltd also receives 50% of all dividends that are generated by the
joint venture company.
Post Office Ltd has an agreement with the Federation of Subpostmasters to pay all
postmasters the sum of £1.12 for every foreign exchange transaction conducted on
behalf of Post Office Ltd. This figure is a flat sum that is paid for every transaction
irrespective of the value of the transaction.
The Post Office has a number of contractual relationships with corporate customers
who receive foreign currency on account. All these corporate customers receive the
standard discount for any transaction that is over £ 5,000 in value. Some of these
contractual relations involve a yearly rebate depending on the number and value of the
transactions conducted. All of these contracts are managed centrally by the Head of
Travel Services and his team, there is no authority process for anybody apart from the
Head of Travel Services or an appointed member of his team to enter into a contract for
the provision of foreign exchange for a corporate customer or an individual conducting
a high value of transactions.
Since November 1993 a daily fax is sent to all participating on demand outlets, which
provides them with the daily retail rates of exchange they are authorised to buy and sell
currency at.
On a daily basis Post Office Ltd buys the currencies it needs to support it’s networks
from just one supplier, this historically was FRCS and is now FRTS. This currency is
bought at the wholesale buy rate for that particular day; this wholesale buy rate has
been contractually agreed between Post Office Ltd/FRTS at the rate the currency can
Signature I GRO i Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
be sourced from the wholesale currency market.
Upon receipt into the Post Office network all currency bought from FRCS/FRTS is
converted from the wholesale buy rate to the Retail buy rate and the currency is always
held at this rate within the network. This conversion from the wholesale buy rate to the
retail buy rate involves the currency being devalued, on average this devaluation
amounts to 6% of the currency’s value. The reason the currency is devalued in this
manner is to enable all foreign currency within Post Office Network to be held at the
same universal rate, which is the lowest rate of its value. The consequence of this is
that any subsequent revaluation of the currency shows that the monies are generated
at outlets and not at the central distribution centre
This accounting regime has been agreed within Post Office finance executive as the
best way to hold and record monies made from Bureau de Change transactions. It also
has the compliance of the Bank of Ireland through its subsidiary FRCS/FRTS.
When currency is sold to a member of the public this is sold at the retail sell rate, which
is provided to participating outlets on a daily basis through the fax sent. The difference
between the rate, which the currency is being held and the rate at which it is sold to the
public is known as the retail spread, this is a common term within the Bureau de
Change industry and generates the revaluation figure at the outlet.
However the retail spread does not constitute the true income generated from the
transaction as the currency has already been devalued by approximately 6% on its
purchase from the wholesaler. The true income generated is the differential between
the rate at which it was bought from the wholesaler and the rate it was sold to the
customer, this is also the difference between the full retail spread and the initial
devaluation.
Signature witnessed by M Patel
Signature L
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POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
In order to demonstrate how this process works I have produced an illustration of the
purchase and sale of £100 of currency as a conceptual example, which I now produce
as item number HRS/1,
This illustration shows how the wholesale and retail margins operate and the differential
between the wholesale and the retail spread.
In terms of the illustration if we were to buy £100 from FRCS/FRTS, Post Office Ltd
would buy this for £101. Upon receipt into the Post Office Network (Cash Centre) the
£101 would be converted in value to £95 which represents the retail buy rate, this
devaluation looses the Post Office £6 in value which is held on its books at the central
cash centre. If the currency being held in the Post Office outlet was subsequently sold
to a customer this would be done at the retail sell rate, which on the illustration would
be £103. In terms of the outlet the revaluation within their accounts should show the full
difference between the retail buy and the retail sell rates, which in the example is £8.
The true income earned from this transaction is the difference between the revaluation
on sale and the initial devaluation, which is £8 minus £6 giving £2 income generated.
I first became aware of an irregularity at Rugeley Post Office on 16" January 2003
through a call I received from the Post Office Legal department asking for my advice on
the freezing of bank accounts. As a result of this conversation I was made aware of an
incident having taken place at Rugeley Post office involving the Bureau de Change
product and was asked for my input as the Head of Travel Services. Since that initial
contact, I have been involved with various analyses of Bureau de Change transactions
conducted at this office and also implementing stricter controls and monitoring
procedures. I also checked our central database of corporate customers to understand
if Rugeley was an outlet conducting corporate transactions, I found this not to be the
Signature { GRO y
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POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
case. I also checked to see if RPX Recycled Plastics Ltd had any contractual
relationship with the Post Office to conduct corporate transactions, this was also not the
case.
When I was more aware of the scale of the income loss at Rugeley and the potential
impact for Post Office Ltd, I! needed to obtain accurate figures for each of the
transactions which had taken place at Rugeley so I could ascertain the loss to Post
Office Ltd and how much money I could recover from FRTS who had been paid income
that in reality had never been generated. I liaised with the investigating officer, Mr M
Patel who I understood was compiling a database of all transactions which took place
at Rugeley, I was subsequently supplied a copy of this database (MP/3). Upon receipt
of this database I conducted further analysis to understand exactly how much income
had been paid to FRTS that had not actually been generated at the time of the
transaction, through the application of an unauthorised exchange rate. On completion
of this analysis, I ascertained that £241,194.62 had been paid in income to FRTS but
had never been generated at the time the transactions had taken place. This money
has now been repaid to Post Office Ltd by FRTS after agreement between the
Managing Director of FRTS and the Chief Executive of Post Office Ltd.
I now produce a further illustration to show exactly how much money Post Office Ltd
lost as a result of the transaction that took place at Rugeley MSPO on the 23" of
December 2002, which is identified as item number HRS/2.
Rugeley Post Office carried out a transaction selling 150,000 euros to a customer on
the above date. Post Office Ltd would have paid £96,649.00 for this number of euros to
FRTS based on a whole sale buy rate of 1.5520, upon receipt of this currency Post
Office Ltd would have devalued it to the retail buy rate of the day, which on the day in
question was 1.6485, this produces a value of £90,991.00.
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
This example shows the currency has been devalued by £5,658.00, upon receipt and
before being sent to Rugeley Post Office. If the currency had been sold at the official
retail sell rate of 1.5117 (over 5K rate), the currency would have been sold to the
customer for £99,226.00. The office account should therefore have shown a positive
revaluation of £8,235.00. If the original devaluation is deducted from this the true
income earned by Post Office Ltd and paid to the joint venture was £8,235.00 minus
the downright of £5,658.00, which equates to £2,577.00. From a inspection of the
Forde Moneychanger till role and recorded on the database forwarded to myself, the
actual exchange rate applied on that date when selling the currency to the customer
was 1.65, which meant the customer was charged £90,909.00.
Instead of showing a positive revaluation of £8,235.00, the transaction would actually
have generated a loss of £82.00 as it was sold at a worse rate of exchange than it was
actually being held at. The true loss to the Post Office as a result of this transaction
was £8,317.00. Of this sum Post Office Ltd will have recovered £2,577.00 from FRTS
as income it would have paid based on the correct exchange rate having been applied.
After I was aware of the initial scale of losses at Rugeley, I also asked a report to be
produced showing how much revaluation was being generated for each transaction so
that I could compare what should have been earnt against what was actually being
earnt , this report was essential to produce to understand if there were any other
irregularities amongst the other 646 outlets within the Post Office network offering a full
on demand service. This report produces a broad indication of the revaluation that
should be earnt The ratio between a value of a sale and the revaluation shown at an
outlet for that sale should be consistent throughout the network, although there will be
slight variations that are caused by movements in exchange rates and the amount of
stock held.
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Hugh Richard STACEY
A report has been generated specifically for Rugeley from week 1 (w/e 03.04.02)
through to week 43 (w/e 22.01.03), which I now produce as item number HRS/3.
As shown on the illustration HRS/1, for a sale of £100 the revaluation shown should be
£8 irrespective of where the transaction had taken place. This is represented as a
percentage of the value. To be within acceptable boundaries the revaluation should
always be between 7% and 12%.
On inspection of the report (HRS/3), I noticed that rather than being in the accepted
boundaries of between 7 and 12 percent, the percentage revaluation recorded was
between -1% and +2%. This produces further evidence that incorrect exchange rates
were consistently applied at Rugeley MSPO causing significant losses to Post Office
Ltd.
! also noticed from this report that in week 43 (w/e 22.01.03) that a revaluation ratio has
been recorded of 10% that falls within acceptable boundaries, I have subsequently
been informed that week 43 corresponded to a new Subpostmasters being in place at
Rugeley MSPO.
Signature Signature witnessed by M Patel
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POL00062370
Witness Statement “OFFICE
{CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a)
and 5B, MC Rules 1981, r 70)
Statement of Mr Raj KALSI
Age if under 18 Over 18 (if over 18 insert ‘over 18")
This statement (consisting of thirteen (13) pages each signed by me) is true to the best of my knowledge
and belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know to be false or do not believe true
Datedthe 4th dayof September 2003
Iam currently employed as a Product Support Manager by Post Office Ltd and have
been so employed for approximately 8 years though have been employed by the Post
Office for approximately 15 years. My Role is involves for Bureau de Change providing
the content for the counter operations manual, providing operational expertise to Post
Office Ltd (POL) for counter procedures. Providing the Post Office help line with
expertise on any operational questions, problems or clarification on the counter
operational requirements related to the Bureau product. Also to provide feedback onto
any proposed changes to ensure that any counter operational processes are not affected
and signing of any written instructions.
During 1995Post Office Ltd began providing foreign currency services over the counter
and in 1998 a counter Operations Manual for Bureau de Change on demand was
produced, the content of which was provided by myself. This original manual was
updated in September 2002. I formally produce the Operations Manual as item number
RK/01
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continyation of statement of Raj Kalsi
There are four ways in which the public can obtain foreign currency from Post Office
Ltd, they can either place an order at an outlet which provides a Bureau de Change
service and then collect their ordered currency in 2 to 4 day time or they can go to one
of the ‘On Demand’ Bureau de change outlets which have a stock of currency on hand
and are therefore able to conduct transactions on the spot. Alternatively currency can be
obtained via the internet or telesales at all branches.
The following procedures, which I have been asked to describe, are in relation to ‘On
Demand’ outlets only.
Bureau de Change on demand service is available in selected Post Office branches. It is
provided by Post Office Ltd in a joint partnership with First Rate Travel Services. The
branches keep a stock of foreign currency and travellers’ cheques, which they can sell to
customers on demand commission free excluding Sterling travellers cheques. We also
offer a purchase service, which makes it possible for customers to exchange their
foreign currency for the sterling equivalent commission free. With the buy back of
Sterling travellers cheques unless the customer has a Post Office receipt to prove
purchase, commission will be charged.
Bureau de Change on demand branches are supplied with an electronic rateboard, a
Forde Moneychanger and a streamline terminal for accepting debit/credit card
payments.
Each Bureau de Change on demand outlet will have an electronic rateboard, which
Signature witnessed by M Patel
Signature I GRO.
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
shows both the Buy and Sell rates for selected currency and travellers’ Cheques. The
rateboard is connected to the Forde Moneychanger by a data cable and the rates shown
are automatically updated with daily exchange rates when they are entered into the
Forde Moneychanger. The electronic rateboard should be displayed in a prominent
position and should not be switched off at any time, unless advised by the First Rate
Travel services.
The Forde Moneychanger is a foreign exchange calculator that performs a variety of
functions:
It calculates the value of Foreign currency in Sterling
When rates of exchange are entered, the electronic rateboard is updated automatically
It prints a customer receipt
It keeps a running check on stock levels
It provides information for full daily and weekly accounting.
A two-part tally roll is used in the Forde Moneychanger and records transactions, the
top copy forming the customers receipt, whilst the under copy remains attached to the
roll and is kept at the outlet as their records.
The Streamline terminal is provided by Streamline. The terminal will seek
authorisation for debit and credit card transactions and send the transaction details to
the processing centre without the need to despatch paperwork, unless an manual
fallback procedure is followed if the terminal does not work.
Signature GRO i Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continyation of statement of Raj Kalsi
First Rate Travel Services supply the currency sold at the Post Office outlets, which is
transported to and stored at the Post Office’s National Secure Stock Centre (NSSC) in
Hemel Hempstead. Orders from the Post Office outlets are placed to the NSSC who
then despatch the order, which is sent by Royal Mail Priority Services. Ina similar way
currency which is surplus to requirements at an outlet can be returned to the NSSC.
Each on demand outlet will be advised by fax, originating from First Rate Travel
Services, of the exchange rates applicable each day, Saturday rates are advised on
Friday afternoon. The exchange rate is determined by First Rate Travel Services and as
a Joint Partner, Post Office Ltd are contractually obliged to adhere to the published
rates.
Upon receipt of the fax the rates should be entered into the Forde Moneychanger before
the outlet opens for business, if the rates are not received by 9am each day or Saturdays
rates by 4pm Friday the branches are required to contact NSSC, the rates should be
entered as soon as the information is received. Rates for Saturday, which will be
received on Friday afternoon, should not be entered into the Forde Moneychanger until
Saturday morning.
It should be noted that the rate sheet (Fax) shows exchange rates for transactions up to
the value of £5,000. A special rate is available to customers who wish to purchase or sell
currency with a sterling equivalent value of £5,000 or more. This is obtained by
contacting First Rate Travel Services on the telephone number provided on the fax. As
the rates applicable to Saturday transactions is sent to the outlets on Friday afternoon,
this special rate of transactions of £5,000 or more in with regards to Euros and US
dollars is published but at all other times First Rate Travel Services must be contacted to
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
determine the rate to be used for such transactions.
The method of inputting the new exchange rates into the Forde moneychanger are fully
described in the Operations Manual at pages 9 to 11 of subsection 5, item number
RK/O1.
For those Post Office which offer an on demand Bureau de change service, a separate
till to the usual counter tills must be used for all Bureau de change transactions to
ensure the daily and weekly balances are correct.
On demand outlets should generally limit the stock of foreign currency held in the
branch to approximately two weeks worth of sales, though there may be occasions,
however, when there is a need to keep a level of currency in excess of two weeks
supply, for example, when it is known that a customer is going to place a large order, or
a promotional event may create an artificial demand.
To place an order the outlet is required to complete a Foreign Currency Order form
P5056, I produce a blank version of this form as item number RK/02. The form should
then be sent via fax to the NSSC, although telephone orders are now accepted. If for
some reason an urgent order is required then the form P5056 should be sent via fax to a
special emergency order number or the outlet can ring the Helpline service where their
order will be taken over the telephone. All orders should be placed to the NSSC before
2pm so that next day delivery can be ensured.
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continyation of statement of Raj Kalsi
Upon receipt of the currency from the NSSC, Hemel Hempstead, the currency should
be carefully checked against the enclosed advice note, the advice note details the ‘buy
note’ rates of the day when the order was placed and the sterling value of the
remittance (REM).
All Post office outlets use a computerised system known as HORIZON to conduct
transactions and perform the office accounting. In simple terms the system is fed
information on the amount of cash and stock held in the office at the beginning of the
week and is used throughout the week to conduct numerous transactions which entail
giving out stock or cash and the receipt of cash or ‘vouchers’ all of which are fed into
Horizon which keeps a running tally of what is ‘coming in’ and what is ‘given out’
throughout the week. At the end of the week the Horizon system will be able to tell the
user what has been sold that week and what should be on hand in the office in terms of
cash and stock. This forms the basis of the weekly verification of cash and stock on
hand carried out by all Post Office outlets commonly referred to as the weekly office
‘Balance’
Post Office outlets operate in cash account weeks, the week commences on Thursday
morning and finishes at the close of Business on the following Wednesday at which
time the office balance is performed by the staff.
Having received and checked the foreign currency received from the NSSC, the total
sterling equivalent indicated on the advice note at the ‘buy note’ rate should be entered
into the HORIZON computer system. This effectively informs the system that you have
just taken receipt of X amount of foreign currency and you have ‘booked’ it in.
Signature Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, 9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
Once that has been done, the individual currency types must be transferred into the
Forde Moneychanger. Again using the advice note, each currency type is transferred
into the Forde Moneychanger by entering the type of currency, the foreign face value
and the ‘buy notes’ rate as shown on the advice note and then pressing ‘Enter’ at which
time the equivalent Sterling value will be displayed and the Moneychanger will ask if
you are sure and wish to proceed. The Sterling equivalent displayed on the
moneychanger should be the same as the Sterling equivalent shown on the advice note,
if they are different then an error has occurred and the process should be started again
from the beginning. If it is correct then the next currency type can be entered into the
Moneychanger until all have been input when the Moneychanger will print out the
grand total in Sterling of the currency received, this should again match the figure
shown on the advice note and that which was entered into the HORIZON system. The
Moneychanger printout should then be attached to the Remittances In Slip and the
advice note and kept in the branch for one (1) year.
The full procedure of receiving and transferring currency onto HORIZON and the
Forde Moneychanger is described on pages 17 to 20, subsection 6 of the Operations
Manual.
Having ‘booked’ the currency into the office both on the Horizon System and the Forde
Moneychanger, it is now ready to be sold to the customers.
The sale of foreign currency and Travellers’ Cheques can be paid for at the counter ina
number of ways which I have listed below:
Signature Signature witnessed by M Patel
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oO (CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 58, MC Rules 1981, r 70)
Continyation of statement of Raj Kalsi
e Cheques within guarantee card limit
¢ Bankers’ Drafts & selected Building Society cheques
e Debit & credit card
These are the only methods of payment accepted.
With regards to payment made by the customer for the purchase of foreign currency by
cheque other than a Building Society cheque, the following checks should be carried out
by the Post Office staff.
e It has been completed in black ink (blue is acceptable but no other can be used)
e Itis made payable to ‘Post Office Ltd’
¢ Itis crossed ‘A/C Payee’
e tis in date (a cheque is valid for six months)
e [tis not postdated (a cheque must not be accepted before the date shown on it)
e The amount is entered in words and figures, and that they agree
e That it is supported by a valid guarantee card
e That it is signed in your presence by the person whose signature appears on the
card
It should also be remembered that the amount of the cheque must not exceed the
guarantee limit on the card. There are no instructions issued to say that business
Signature Signature witnessed by M Patel
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(CJ Act 1967, 59; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
cheques can be accepted for Bureau de Change.
Upon receipt of the cheque the reverse of it should be datestamped using the Post
Office datestamp and the words ‘For Cur’ (in the case of foreign currency) or ‘For TC’
(in the case of Travellers’ Cheques) entered on the back of the cheque together with the
cheque guarantee card number.
The methods of payment excluding Debit and credit card payments are detailed at
pages 54 to 58, subsection 12 of the Operations Manual.
During the course of the week various sales and ‘buy backs’ are performed at the Post
Office outlet, each being recorded by the Forde Moneychanger. Having initially ‘fed’
the moneychanger with the value of the currency we started with (including a
breakdown of different currency types) and then entering details of transactions as they
are performed, the Moneychanger keeps a running tally of what has been sold, what
has been bought and therefore what you should have left in the Bureau till.
The Bureau de Change is subject to Daily and weekly accounting which requires
interrogation of the Forde Moneychanger and the despatch of documentation and also
the input of figures into the HORIZON system.
Daily accounting must be performed at the close of business each day in order to check
that all of the transactions have been entered correctly on the Moneychanger and that
you have the correct amounts of foreign currency left in stock. In order to do this you
Signature witnessed by M Patel
Signature {GR
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3}(a) and 5B, MC Rules 1981, r 70)
Continyation of statement of Raj Kalsi
would carry out a ‘Command 3’ procedure on the Moneychanger, which just entails
pressing three (3), buttons on the Moneychanger.
e Press Command 3 (PRINT TOTALS)
e Press the ‘1’ key (DAILY TOTALS)
¢ Press the ‘all’ key
The Moneychanger will print a report showing the transaction summaries for that day.
It also indicates the ‘Sterling till balance’ this is the value of the Sterling cash and
cheques on hand and should agree with what is physically in the Bureau till. Any
surplus Sterling cash and any cheques should be transferred out of the Bureau de
Change till, the Cash being Remitted out to the Cash Centre and the cheques forwarded
daily together with other cheques taken at the counter to the cheque processing centre.
The Command 3 printout will also show the total amount of each foreign currency held
and this should be checked with what is physically held in the Bureau till to make sure
it agrees. If it agrees then the Daily totals can be cleared from the Moneychanger and
the Command 3 printout stored in the Bureau till until the end of the cash account week
when it should be filed with the weekly tally rolls.
The procedure required for performing the daily accounting on the Moneychanger is
shown at pages 81 to 83, subsection 14 of the Operations manual. I produce an example
of a Command 3 printout as item number RK/03
There are further daily accounting procedures which must be performed however these
Signature witnessed by M Patel
Signature ‘GRO!
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POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70}
Continuation of statement of Raj Kalsi
relate to debit and credit card transactions and the sale and purchase of Travellers’
cheques.
At the end of a cash account week, which for the Post Office is at the close of business
on a Wednesday, a weekly account of the Bureau de Change till must be performed
together with the despatch of various related documentation.
In order to carry out the weekly accounting, firstly the daily Command 3 printout
should be obtained and the daily balance performed as mentioned earlier. When the
daily balance has been completed, a Command 10 printout is required from the
Moneychanger, which just entails pressing the buttons, Command and then 10, on the
Moneychanger. The Moneychanger will print the Command 10 ‘weekly report’.
I produce an example of a Command 10 weekly summary as item number RK/04
This report shows a number of figures relating to different things.
Firstly at the top of the printout it will show the Cash Account week number and the
date and time the printout was actually produced and the session number of this
printout. It will also identify the Post Office outlet concerned with the unique 7 digit
code shown underneath the date.
Underneath this there will be a figure shown against ‘CASH HELD’, this is given in
Sterling and is the value of all of the currencies that are physically held in the office at
the time of producing the command 10 print out. Underneath this figure is a figure
Signature i GRO H Signature witnessed by M Patel
cso11a, Version 3.0 11/02
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POL00062370
Witness Statement
(CJ Act 1967, 59; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
shown against ‘REVALUE ' relating to the revaluation total. My basic understanding of
the revaluation figure is the profit or loss made by the buying and selling of currencies
at different exchange rates and the fluctuations of the exchange rates during that week.
The report goes onto show a breakdown of actual currencies held which again should
agree with what is physically in the Bureau till. Towards the bottom of the Command
10 print out are some Sub Totals, which show figures against ‘BN’ (bought notes) and
‘SN’ (sell notes). These figures show the total number of transactions and the total
value in Sterling of currency bought and sold during that Cash Account week.
Certain information from this Command 10 printout must be transferred onto other
accounting documentation and sent to the relevant section within the Post Office or
figures input into the Horizon system or indeed both.
There is a Post Office accounting form called a Bureau de Change Commission and
Revaluation Summary, form P4833, which must be completed weekly and despatched
to the accounting section in Chesterfield. This form requires the completion of two
totals as well as office details etc. The two totals are those shown for the Revaluation
(REVALUE) figure and the Commission (COMM) figure on the Command 10 summary.
Both figures should be entered onto form P4833 in their relevant boxes making sure that
the Revaluation figure is entered into the correct box, either Negative or Positive, this
again is indicated on the Command 10 printout. Once complete this form together with
the Command 10 printout should be forwarded to Chesterfield.
I produce a sample of the Revaluation Summary form P4833 as item number RK/05
Signature 'GRO
CsottA Version 3.0 11/02
Signature witnessed by M Patel
POL00062370
Witness Statement
(CJ Act 1967, 89; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
As well as completing the above mentioned documentation with regards to the
Revaluation and Commission figures, both of these values must also be input into the
HORIZON computer system, also the Sterling value of foreign currency on hand as
shown at the top of the Command 10 printout must also be input into the HORIZON
system. These figures are input into HORIZON in order to take into account Bureau de
Change transactions as the Forde Moneychanger is not linked to Horizon and
transactions are performed as a ‘stand alone’ machine, however, when the required
information is fed into HORIZON it allows the office to include those figures in the
Office’s weekly Balance.
The under copy of both the Command 10 printout and form P4833 should be retained
safely at the Post Office, whilst the top copies having been completed correctly and
datestamped sent away
The process for obtaining a Command 10 printout and the completion and despatch of
form P4833 is fully described at pages 100 to 104, Subsection 15 of the Operations
Manual.
The process for inputting the required figures from the Command 10 printout into the
HORIZON computer system are fully described at pages 107 to 110, Subsection 15 of
the Operations Manual.
Signature witnessed by M Patel
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POL00062370
i Stat t
Witness Statemen OFFICE.
(CJ Act#1967, 89; MC Act 1980, ss 5A(3)(a)
and 58, MC Rules 1981, r 70)
Statement of Mr Raj KALSI
Age if under 18 Over 18 (If over 18 insert ‘over 18')
This statement (consisting of four (4) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know fo be false or do not believe true.
Dated the 23 dayof September 2003
Signature
Further to my previous statement of 4" September 2003, I wish to add the following.
In the first paragraph, 3'4 line down of my previous statement, the sentence reads as
follows “My Role is involves for Bureau de Change providing the content for the
counter operations manual”, this should have read My Role for Bureau de Change
involves providing the content for the Counter Operations Manual.
Furthermore in the earlier statement J made reference to and produced the Bureau de
Change Operations Manual, September 2002 as item number RK/01, this manual
replaced the original Bureau de Change Counter Operations Manual, which was
produced in January 1998. I retained an old copy of this manual, which I have now
handed to Mr Patel of the Investigation section and I now produce as item number
RK/O1A.
I would be responsible for compiling a list of all on demand offices which would be
used to distribute the Bureau de Change Counter Operations Manual and therefore all
outlets offering this service would have received a copy of the manual (RK/01A). Upon
Signature Signature witnessed by M Patel
C8011 (Side A) Version 3.0 11/02
ED)
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 58, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
issue of the updated Operations Manual RK/01, the outlets would have been informed
to destroy the old manuals.
The basics of the two Operations Manuals are the same, the main similarities and
differences are listed below:-
e The original version (RK/01A) was written before the Post Office installed it’s
computerised accounting system know as HORIZON, Horizon began to be
installed in Post Office outlets during 1999. Prior to this system Post Office
outlets used a computer system know as ECCO + or Capture and prior to these
two systems a manual Cash Book and therefore version 2 (RK/01) was written
with the Horizon system in mind.
e With the original version (RK/01A), the equipment used for the Bureau
transactions was the same except that originally there was no streamline
terminal, which is used to authorise debit and credit card transactions. Originally
only credit cards payments were accepted and these were manually transacted
using the old fashioned method of making an imprint of the credit card. With
the newer version (RK/01), both credit and debit cards could be used with the
streamline equipment.
e The method of receiving a fax from First Rate Travel Services (FRTS) every day
and inputting of the rates into the Forde Moneychanger remains virtually the
same.
Signature Signature witnessed by M Patel
CSO11A _ Version 3.0 11/02
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POL00062370
Witness Statement
oO (CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
¢ With version 1, the value of a transaction which qualified for a preferential rate
was set at £2,000 or more (Sterling value) whereas in version 2, this value
increased to £5,000 or more (Sterling value), however, both required contact to be
made to FRTS who would provide the preferential rate for such transactions.
e Method of payment via cash and cheques remained identical in both versions.
e Inversion 1, commission used to be charged on currency transactions, however
by version number 2 the Bureau de Change service was commission free.
* The transfer in and out of currencies on the Forde Moneychanger remain
identical as does the process involved in ordering currency from Hemel
Hempstead.
¢ The daily balancing involving the printout of the Command 3 summary remain
identical, though the command summary produced at that time contained
additional data that was not used.
* The weekly balance is slightly different in that in version 1 you initially begin
with printing out a Command 3 summary for all transactions by country, this
will provide a list of all currencies held and the value held and is used to
physically check against what is in the Bureau till. When this has been checked a
Command 7 entry is made to clear all the totals, you are then required to press
Signature R Kalsi Signature witnessed by M Patel
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Witness Statement
D (CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Raj Kalsi
Command 8, which will provide a printout listing all of the Revaluation figures
for each different currency with a summary at the bottom.
¢ With Version 2 the initial action of obtaining a Command 3 printout remains the
same however only a Command 10 summary thereafter was required which
displayed the same information as the Command 8 mentioned above.
¢ The reporting of the Commission and Revaluation figures using form P4833
remains the same, though in version 1 the forms were sent to Hemel Hempstead
and in version 2 they were sent to Chesterfield.
¢ There was still a requirement to enter figures in relation to the Sterling
equivalent of currency held at the end of the cash account week, the revaluation
figure, commission figure ete onto the office cash account, in version 2 by
entering those figures into the Horizon system, in version one by using the
ECCO+ system or Capture system or the manual cash account book.
e Finally version 2 takes into account advances in technology and devotes sections
in the Manual with regards to Foreign currency orders placed via the internet or
through telesales, these services were not available when version 1 of the manual
was produced.
Signature Signature witnessed by M Patet
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POL00062370
Witness Statement ‘OFFICE
(CJ Act 1967, 59; MC Act 1980, ss 5A(3)(a)
‘and 5B, MC Rules 1981, r 70)
Statement of Mr Laurence George Hutchins
Age if under 18 Over 18 (If over 18 insert ‘over 18')
This statement (consisting of seven (7) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if 1 have
wilfully stated in it anything which I know to be false or do not believe true.
Datedthe Jt dayof March 2003
Signature
Iam employed by Cash Handling and Distribution (CHaD), a part of the Royal Mail
Group, as the Foreign Currency Manager and have been so employed for
approximately 3 years, though I have been employed with the Post Office for 23 years.
Iam based at the Cash Handling & Distribution centre located in Hemel Hempstead,
HP2 4SF, this particular centre deals with the storage and distribution of ‘stock’ and
foreign currency to Post Office Ltd. outlets nationally. The word ‘stock’ encompasses a
wide variety of items such as postage stamps, phone cards, postal orders etc which are
sold throughout the Post Office outlets.
Post Office Ltd. have a partnership with a company called First Rate which is a part of
the Bank of Ireland to supply Foreign currency to be sold through Post Office outlets.
My role at the centre is the inventory manager for foreign currency which entails the
requisition of foreign currency from First Rate to ensure it meets the demands of the
Post Office outlets. The foreign currency is collected by secure means via the Cash in
transit (CIT) Network of CHaD from Shepperton, London and brought to the centre
here in Hemel Hempstead for storage and distribution. I try and maintain no more
than two (2} working days worth of funds on site though this may fluctuate with
Signature L Hutchins Signature witnessed by M Patel
C8011 (Side A) Version 3.0 11/02
@5)
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Laurence George Hutchins
seasonal variations. During the busy holiday season I may well be ordering between 6
to 6.5 million pounds worth of foreign currency on a daily basis, this will drop to about
2 to 2.5 million during the winter period.
Part of the Foreign currency which we deal in, is the Euro and in fact accounts for about
80 % of all the currency traffic.
To place an order with First Rate, I assess the foreign currency requirements taking into
account orders placed by Post Offices throughout the country and fax an order through
directly to First Rate who have it ready for collection by CIT the following evening. The
foreign currency is then transported to this centre where it is secured in a vault
overnight and ‘booked’ in the following morning.
First Rate determine the exchange rates for both buying and selling of foreign currency.
When I place an order from the cash centre to replenish my stock, I am sold currency by
First Rate at a wholesale exchange rate. This is the exchange rate I will use to book in
the various types of Foreign currency, this therefore will provide me with a sterling
value for that currency. The amount in volume, the wholesale exchange rate and the
sterling value of each currency is listed on the advice notice I receive with the delivery
from First Rate and this is then verified and the figures entered onto a computerised
database.
For a Post Office outlet to order foreign currency from this centre, there are three
methods they can use, however, all three require the completion of a form P5056 known
as a requisition form, I now produce a blank version of this form for reference as item
number LGH/01 . The first method requires the completion of the P5056 form by the
Signature L Hutchins Signature witnessed by M Patel
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POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss SA(3)(a) and 58, MC Rules 1981, r 70)
Continyation of statement of Laurence George Hutchins
Post Office outlet requesting the order, which is then forwarded to the centre by post.
The second method is for the form to be faxed to the centre using the fax number
provided on the form and the final method is for the Post Office outlet to contact this
centre via telephone (help line) and place a telephone order, the staff member taking
such a call would complete the P5056 form whilst speaking to the outlet. In general, the
most common practice, which is used for placing these orders, is via fax.
Upon receipt of the completed P5056 form a staff member enters the details into a
computer which is then used by the warehouse section to make up the specific order
and then placed in to plastic pouches and sealed. At the same time the computer
generates a foreign currency advice note which lists the various types of currency which
has been ordered, it will show the amount in volume of each currency, the exchange
rate which they have ordered the currency from us, the sterling equivalent and a break
down of the various denominations for each currency type and this advice note is
placed within the pouch, I now produce a sample of this form showing an order which
is being prepared for an office today as item number LGH/02.
The plastic pouches are sent to the offices using Royal Mail’s priority services facility
which guarantees a next day delivery and each pouch is insured up to the value of
£2,500 sterling, hence no more than £ 2,500 worth of foreign currency is placed into
each pouch. If an office orders thousands of pounds worth or currency, then they will
receive several pouches for that one order.
The exchange rate used for the preparation of the order is again one that has been
supplied to us by First Rate. Ona daily basis at around about 0800 hours each morning,
this centre as well as all Post Office outlets nationally who perform Bureau de Change
Signature L Hutchins Signature witnessed by M Patel
CSO1tA Version 3.0 11/02
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Laurence George Hutchins
transactions receive a fax from First Rate which provides the buy and sell rates of the
various foreign currencies for that day.
Although initially the currency received from First Rate is entered onto the computer at
the wholesale exchange rate, this currency is then re-valued using the ‘buy’ currency
rate figure as specified on the daily fax from First Rate, this figure would always be
higher than the wholesale rate. When the currency is despatched (transferred) to the
Post Office outlet, which may not be for a day or two after having received the currency
from First Rate, the advice note will indicate the ‘buy’ currency rate for that particular
day as indicated on the daily fax. Upon receipt by the Post Office outlet, the currency
should be ‘booked’ in and held at the buy rate as indicated on the accompanying advice
note.
In order to ‘book in’ the currency at the Post Office outlet, the amount in volume and
exchange rate given on the advice note is required to be physically input into the Forde
Money Changer equipment that each outlet uses for Bureau de Change transactions,
this has to be done for each currency type received in the delivery and the figures
including the sterling equivalent should match the advice note. The advice note is then
just retained by the outlet for their records.
The Post Office would then sell (to the customer) the currency at the exchange rate
given on the fax that day, if the transaction took place on the same day as delivery, or
use the exchange rate supplied by First Rate according to the day the transaction took
place.
To demonstrate what I have said above, I have shown an example below: -
Signature L Hutchins Signature witnessed by M Patel
CSOtiA Version 3.0 11/02
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 54(3)(a) and 5B, MC Rules 1981, r 70)
Continyation of statement of Laurence George Hutchins
I buy 1600 Euros from First Rate on Monday at a wholesale rate given to me by First
Rate as 1.6.
I book this into our computerised system as 1600 Euros at 1.6 giving a sterling
equivalent of £1000.
The daily Fax from First Rate for Monday indicates a ‘buy’ rate for Euros of 1.7,
therefore I now re-value those Euros using the exchange rate of 1.7 which in this case
means my 1600 Euros are now worth approximately £940.00.
The 1600 Euros are then despatched to a Post Office outlet with an advice note
indicating that the 1600 Euros should be booked in at a rate of 1.7 giving a sterling
equivalent of £940.00.
The sell Euro rate for that day as indicated on the First Rate fax shows 1.5, therefore if
the Post Office outlet sold the 1600 Euros that day they would sell to the customer at a
rate of 1.5 which would mean that the Post Office would receive from the customer
approximately £ 1,060.00.
Therefore overall the Post Office (Cash centre) paid First Rate £1000 for those Euros and
the Post Office outlet sold them and received £ 1,060 for them, leaving the Post Office
with a profit of £ 60 on that one transaction.
There is no requirement from the Post Office outlets to feedback any figures or
paperwork to this centre in relation to Foreign currency transactions. There is also no
Signature L Hutchins Signature witnessed by M Patel
csotia Version 3.0 11102
POL00062370
Witness Statement
(CJ Act 1967, $9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Laurence George Hutchins
real limit to the amount of currency an outlet can request from this centre, however, an
exceptionally large order which had been placed via the telephone (help line) would
normally be referred to me and I would raise it with Mr R Kalsi who would make
contact with the money laundering section of Post Office Ltd. and seek advice.
If the order is received via fax, the onus for reporting exceptionally large orders is left to
the input clerk and therefore it is not always upwardly reported.
During the early part of December 2002, I cannot now recall specifically the day
concerned, I was performing an exercise to establish the Post Office outlets which
ordered Jarge volumes of foreign currency with a view to setting up deliveries via the
CIT network as opposed to being sent via Royal Mail priority services. These offices
normally order for corporate customers and are therefore generally known or have high
sales, however, when I looked at some of the figures, a Post Office in Rugeley bearing
the FAD code 264242 (a unique six digit number allocated to each Post Office) showed
very large volumes of Bureau de Change currency transferred to it, I was not aware that
this office had any corporate customers, so I decided to contact the Manager at the
office.
Initially when I got through to the office, I spoke to a female person whose name I
cannot recollect and asked to speak to the Manager but was informed that he was out at
lunch and therefore I left my details with her with the instruction for him to call me
back. Later that same day, a gentleman who introduced himself as Mr Carl Page,
Manager of Rugeley Post Office did call me back. I then asked Mr Page that I had
noticed a large amount of currency being sent to the office and asked him if it was a
mistake on his part or on our part, to which Mr Page stated that it was not a mistake as
Signature L Hutchins Signature witnessed by M Patel
cso1té Version 3.0. 11/02
@)
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss SA(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Laurence George Hutchins
he was ordering it for a corporate customer. I asked who the corporate customer was to
which Mr Page stated it’s not an official corporate customer set up by the Post Office
but one he had set up locally. Mr Page, without any prompt from me, then went onto
say, not to worry as he was following money laundering regulations. Mr Page then
stated that he would contact me again soon as he wanted to discuss getting one
standard weekly delivery via the CIT network rather than the 30 - 40 pouches he
currently received daily. We then ended the conversation, however, I still felt
somewhat uneasy about this situation and after a day or two I raised this with the
National Secure Stock Centre (NSSC) manager and then ultimately with the money
laundering section of Post Office Ltd. When I was speaking to Mr Page in December
2002, I did scribble some notes on a piece of paper which I have retained, I now produce
this as item number LGH/03. There is some additional writing on this piece of paper,
towards the bottom left hand side which were notes I made ona subsequent date whilst
speaking to one of the investigators.
Subsequently in early January 2003, my section received a request from Mr M Patel of
the Investigation section to supply him with details of all the Euros despatched to
Rugeley MSPO over the last year. This information was subsequently obtained from
our computerised records and a schedule was printed off and forwarded to Mr Patel. I
now produce this schedule as item number LGH/04, the schedule commences on
Wednesday 16' January 2002 and concludes on Monday 13 January 2003, during this
time Rugeley Post office had delivered to it 15,752,005 Euros which equate to a sterling
value of £ 9,557,993.49.
Signature L Hutchins Signature witnessed by M Patel
csottAa Version 3.0 11/02
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POL00062370
Witness Statement
(CJ Act 1967, 59; MC Act 1980, ss 5A(3)(a)
‘and 5B, MC Rules 1981, r 70)
Statement of Mr Laurence George Hutchins
Age if under 18 Over 18 (If over 18 insert ‘over 18')
This statement (consisting of One (1) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know to be false or do not believe true.
Datedthe 30th dayof September 2003
Signature L Hutchins
Further to my statement of 11" March 2003, I wish to make the following amendment.
I produced a schedule identified as item number LGH/04 that I stated showed the
amount in volume and value of Euros despatched to Rugeley Post Office. The last
column which indicates the volume of Euros is correct, however, the column headed
Sterling which shows the sterling value, relates to the sterling value of the entire order
despatched that day, which may on occasions have included other currencies, though
the majority of this value would be attributable to the Euros.
Therefore when I have stated that from 16" January 2002 to 13 January 2003,
15,752,005 Euros equating to a sterling value of £ 9,557,993.49 was delivered to Rugeley
MSPO, the volume of Euros is correct, however this does not equate to £9,557.993.49 in
Sterling as this figure includes all the other currency, which would have also been
despatched to the office.
Also the date shown on the schedule is the expected date of delivery and may not
match exactly with when the delivery was actually affected.
Signature L Hutchins Signature witnessed by T Bedwell
C8041 (Side A) Version 3.0 11/92
POL00062370
a
POST”
Witness Statement OFFICE
(CJ Act 1967, 89; MC Act 1980, ss 5A(3)(a)
and 5B, MC Rules 1981, r 70)
Statement of Mr Laurence George Hutchins
Age if under 18 Over 18 (If over 18 insert ‘over 18’)
This statement (consisting of two (2) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know to be false or do not believe true.
Dated the 23rd dayof February 2004
Signature L Hutchins
Further to my statement of 30 September 2003, I received a request from Mr M Patel of
the Post Office Investigation section to extract from our archived records, all of the
wholesale exchange rates in relation to Euros purchased from First Rate Travel Services
throughout the period from 1st March 2002 to 31% January 2003.
The wholesale rates were extracted from our weekly cash accounts through copy and
paste.
Having extracted the relevant wholesale exchange rates, I input them onto a computer
spreadsheet in Post Office week number order, starting at week 50 (week ending
06.03.02) through to week 44 (w/e 29.01.03) of the next financial year. I now produce
this schedule as item number LGH/05.
The missing values are due to the following bank holiday’s:
1. Easter w/e 03.04.02
2. May Day w/e 08.05.02
3. Queens Golden Jubilee w/e 05.06.02
Signature L Hutchins Signature witnessed by G Bernard
$011 (Side A) Version 3.0 11/02
aD
POL00062370
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Laurence George Hutchins
4. August Bank Holiday w/e 28.08.02
5. Christmas Eve and Christmas Day w/e 25.12.02
6. Boxing Day, New Years Eve and New Years Day w/e 01.01.03
We did not receive a supply of euro on the 10.01.03 hence the invoice from First Rate
Travel Services would not have contained the euro rate.
Signature L Hutchins Signature witnessed by G Bernard
CSO11A Version 3.0 11/02
fe)
POL00062370
STATEMENT OF WITNESS
Statement of (full name of witness) STEPHEN WILLIAM COTTIER
Age of witness (if over 18 enter “over 18”) over 18
Occupation of witness Officer of Customs and Excise
This statement, [consisting of pages each signed by me]*, is true to the best of my
knowledge and belief and I make it knowing that, if it is tendered in evidence, I shall
be liable to prosecution if I have wilfully stated in it anything which I know to be
false or do not believe to be true.
{(Full name of witness)..........0000+ seeee
being unable to read the above statement, I, (name of officer reading the statement)
of (address).
read it to him/her before he/she signed it.]*
Iam the case officer in charge of an investigation by H. M. Customs and Excise into the
currency exchange activities of, i __} on suspicion of money
laundering. This investigation took place as a result of financial disclosures made to the
National Criminal Intelligence Service by Messrs. Thomas Cook with who!
had exchanged large quantities of Euro notes into pounds sterling. These disclosures were
initially forwarded by the National Criminal Intelligence Service to the Financial
Investigation Team of H.M.Customs and Excise, Law Enforcement Investigation, based
at Custom House in London. The investigation into the suspected money laundering
activities of ‘ was then undertaken by the Financial Investigation Team based
Dated the 1* day of October 2004
Signed (signature of witness)....... SW Cottier........
[Signed (signature of officer reading the statement) ..........ccccseveveveeversensvseeeee 1*
*DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
C&E 681A PT (April 2001)
@®
POL00062370
STATEMENT OF WITNESS
STATEMENT OF (full name of witness) STEPHEN WILLIAM COTTIER
Continuation Page No: one
at H.M.Customs and Excise Law Enforcement Investigation, in Birmingham. This
investigation culminated in the arrest o: on 13” January 2003 at
the Fort Shopping Centre in Birmingham where he was found to be in possession of
€582,000.
Signed (signature Of Witness) ........cccccccesceccececscensceneeeeeesseceeseseeceeaeseaeeeecouees
C&E 682 STATEMENT OF WITNESS: UNIVERSAL CONTINUATION SHEET
PT (April 2001)
Ge)
PULUUUDZOIYV
STATEMENT OF WITNESS
STATEMENT OF (full name of witness): Jonathan Michael Bird
Age of witness (if over 18 enter ‘over 18°): DOB;25/2/67
Occupation of witness: Officer of Customs and Excise
This statement, (consisting of 1 pages each signed by me)*, is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe to be true.
[(Full name of witness) ....
being unable to read the above statement, I, (name of officer reading the stat
of (address)
read itterfifin/her before he/she signed it }*
os 3% January 2003 I was on duty in the viii of Rugley town centre. At 0718 I observed vehicle registration
a
Dated the SSte oayot_ 2003
Signed (signature of witness). GRO Vv
Signed (signature of officer reading the statemenl):
*DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (April 2001)
C&E 681
POL00062370
E 681A
STATEMENT OF WITNESS
Statement of (full name of witness) David Norman Stone
Age of witness (if over 18 enter “over 18”) Over 18 (DOB: 28/03/53)
Occupation of witness Officer of HM Customs and Excise
This statement, [consisting of 1 page each signed by me]*, is true to the best of my
knowledge and belief and I make it knowing that, if it is tendered in evidence, I shall
be liable to prosecution if I have wilfully stated in it anything which I know to be
false or do not believe to be true.
Leth Laity )-.
Reed rect eof Wit eS acre ETE PP wee
Statement)
Rugeley , Staffordshire.
At 07.47 hrs on 13th January 2003 I saw the person Tknow.
standing at the open boot of vehicle registration number },
Dated the 25th day of July 2003
Signed (signature of witness).
{Sionedtoianat Lo fticer-voadine thes ‘e424. as
Ls aT * T
*DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (April 2001)
Be)
POL00062370
From: RS&1TEAM MIDS 0121421247123 20-10-03 12:29 P. 002
STATEMENT OF WITNESS
STATEMENT OF (fidll name of witne
Philip George Hunt
Age of witness (if over 18 enter ‘over 18°): Over 18
Occupation of witness: Customs Officer
‘This statement, (consisting of 2 pages each signed by me)*. is truc 19 the best of my knowledge and belief
and I make it knowing that, if it ix tendered in evidenee, I shall bc liable to prosecution if I have wilfully
stated in it anything which I know to he filse or do not belicve to be true.
4
4
[{Fiudll name of witness)
being unable to read the above statement, 1, (name af officer reading the statement)
of (address) ....
read it to him/her before he/vhe signed it.}*
On the 13” January 2003 I was on duty with other officers of Customs & Excise it
rmaket, Birmingham. At 0950 hours I arrested Brendan Horton on suspicion of,
tek, Horton igbotes Slaton where he was placed into Police Custody
(then, together with Ms Hudson, interviewe n two occasions. These interviews were
tape recorded, The first commenced at 1702 hours and concluded at 1736 hours. ! now produce the tape
recording of this interview labelied exhibit HUNT T1. I now produce the transcript of this interview labelled exhibit
HUNT TT1. The second commenced at 1751 hours and concluded ai 1834 hours. I now produce the tape i
recording of this interview labelled exhibit HUNT T2. I now produce the transcript of this interview labelled exhibit :
i
HUNT TT2. 3
}
4
Ywor- Nor
Dated the Bed 2003
Signed (signature of witness):
Signed (signature of officer reading the siaremein:
‘DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY ;
PT (Apr 2001)
* C&E 681
POL00062370
WITNESS STATEMENT
Statement of (full names) Philip George Hunt
Age of Witness (date of birth) Over 21
Occupation of Witness Officer of Customs and Excise
This statement, consisting of one page signed by me, is true to the best of my
knowledge and belief and I make it knowing that, if it is tendered in evidence, I shall
be liable to prosecution if I have wilfully stated in it anything which I know to be
false or do not believe to be true.
Dated the 16th day of February 2004
Further to my statement of the 1 September 2003.
Whilst at the custody suite at Stechford on 13/01/03 I took an HSBC paying-in book
from: GRO ! This book contained 18 Post Office receipts. Each
receipt “detailed @ Sale Of Etitos by the Post Office. Inow produce this HSBC paying~
in book and 18 receipts labelled exhibit HUNT A.
In due course I passed exhibit HUNT A to DC4372 Pine. I G R O i
(Signature of witness).......
Statement taken by (in BLOCK LETTERS)
C&E 681A roo 1 cr)
POL00062370
STATEMENT OF WITNESS,
STATEMENT OF (fidl name of witness): Anna Louise Hudson
Age of witness (if over 18 enter ‘over 18°): Over 18
Occupation of witness: Customs Officer
This statement, (consisting of I page each signed by me)*, is true to the best of my knowledge and belief and
I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated in
it anything which I know to be false or do not believe to be true.
[(Full name of witness) ....
being unable to read the above statement, I, (name of officer reading the statement)
of (address) .....
read it to him/her before he/she signed it.}*
On the 13% January 2003 ! was on duty with other officers of Customs & Excise in the vicinity of the Holiday
Hypermaket, Birmingham. At 0950 hours Mr P.Hunt arrested Brendan Horton on suspicion o' )
He then cautioned him. He made no reply. Mr K.Gilligan, Mr P.Hunt, Officers, and I then
transported Mr Horton to Police Station where he was placed into Police Custody.
in two occasions, These interviews
Mr Hunt, together with myself, interviewed:
were tape recorded, The first commenced at 1702 hours and concluded at 1736 hours. The second
commenced at 1751 hours and concluded at 1834 hours.
Dated the 19th day of June 2003
GRO
Signed (signature of officer reading the statement}:
Signed (signature of witness):
“DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (April 2001)
C&E 681
POLUUV0ZSIU
STATEMENT OF WITNESS
STATEMENT OF (fill name of witness): PETER MICHAEL JONES
Age of witness (if over 18 enter ‘over 18): OVER 38
Occupation of witness: OFFICER OF CUSTOMS AND EXCISE
This statement, (consisting of f pages each signed by me)*, is true to the best of my knowledge and belief
and [ make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe to be true.
[Bull name of wittess) csosccscseseseesen
being unable to read the above statement, I, (name of officer reading the statement)
of (address)
read it to him/her before he/she signed it.]*
On the 13" January 2003, { was on duty with other officers of Customs and Excise in the vicinity of Fort Dunlop
suspicion of laundering the
Shopping Centre near Birmingham. At 0950 hours, I arrested
proceeds of criminal conduct and cautioned him. { then escorted him to Stechford Police Station where at 1100
hours I seized one targe black holdall with brown piping that. GRO! said contained 582,000 Euros.
Dated the 27 dayof JT 2003
Signed (signature of witness). i GRO
Signed (signature of officer reading the statement):
“DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (Aptl 2008)
CRE 681 G2
POL00062370
STATEMENT OF WITNESS
STATEMENT OF ffidl name of witness): PETER MICHAEL JONES
Age of witness (if over 18 enter ‘over 18°): Over 18
Occupation of witness: Officer of Customs and Excise
This statement, (consisting of I pages each signed by me)*, is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe to be true.
[{(Full name of witness) .........
being unable to read the above statement, I. (name of officer reading the statement)
Of (addre98) «.sceecceseecceseseesecsscesecsntesscsessesassseciseanessucsssessacecaussussueqietiscaneesssssetattavevesaveeeu
read it to him/her before he/she signed it.]*
Further to my witness statement of the 21st July 2003, I can say that the black holdall with brown piping and its
jon the 13th January 2003 is now referred to as Exhibit PU/1.
Dated the 2003
Signed (signature of witness)
Signed (signature of officer reading the statement):
“DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (Ape 2001)
Cae 684 G3)
POL00062370
STATEMENT OF WITNESS
STATEMENT OF (full name of witness): PETER MICHAEL JONES
Age of witness (if over 18 enter ‘over 18°): Over 18
Occupation of wimess: Officer of Customs and Excise
This statement, (consisting of I pages each signed by me)*, is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if 1 have wilfully
stated in it anything which I know to be false or do not believe to be tue.
{@utt name of witness) ...
being unable to rad the above statement, I, (name of officer reading the statement)
of (address)
read it to him/her before he/she signed it.]*
Further to my witness statement of the 21st July 2003, I would wish to say that the man who I arrested was named
Dated the Jo% say of Film
H
sired tioratue of tress’ GRO I
Oy
“DELETE WHERE NOT APPLICABLE .
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (Apri 2001)
T0*d OL OT POOZ G34 PT
C&EGBIA
FPULUUVOLOIU
reanssse = sccm
STATEMENT OF WITNESS
STATEMENT OF (full name of witness) TIMOTHY MARK PACKMAN
Age of witness (if over 18 enter “over 18") OVER 18
Occupation of witness OFFICER OF CUSTOMS AND EXCISE
This statement, consisting of 1 page signed by me’, is true to the best of my knowledge and belie
and I make it Knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know to be false or do not believe to be true.
[(Full name of witness)
being-unable-to-+read-the-above- statement (name of officer reading the statement)
of (address)
read it-to-himfhor-belare-he/she-signed it}
On Monday 13" January 2003 I was on duty in the vicinity of Rugeley, Staffordshire.
Commencing at approximately 0718 hours, along with other Officers of Customs.and
Excise, I took part in the mobile surveillance of a silver BMW, registration LGRO}
The surveillance ceased at 0940 hours at the Fort Retail Park in Birmingham.
At 1135 hours along with other officers of Customs and Excise I entered} GRO
Etching Hill, Rugeley. I explained to the occupier.
myself and the other Officers were going to search of the property under S18(1) of the
Police and Criminal Evidence Act 1984, the search commenced at 1140 hours. At
1325 hours the search was completed and at 1335 hours all remaining Officers left the
property.
Dated the 22 nol
Signed (signature of witness),
nalts
igned-(signature-of officert
“DELETE WHERE NOT APPLICABLE @&)
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY ~
(si
POLO00623/0
STATEMENT OF WITNESS
STATEMENT OF Elizabeth Jayne Rees
Age of witness Over 18
Occupation of witness: Officer of Customs and Excise
This statement, (consisting of 1 pages each signed by me)’, is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, J shall be liable to prosecution if I have wilfully
stated in it anything which I know to be false or do not believe to be true.
[(Full name of witness
Elizabeth Jayne Rees.....
being unable to read the above statement, I, (name of officer reading the statement)
of (address)
read it to him/her before he/she signed it.}*
On Monday 13" January 2003 I together with other officers of Cu:
Excise was.on duty as part of a surveillance team in the vicinity o
GRO ___ Stafford. At approximately 10:07 hours I together with Richard
rdiow, an officer of Customs and Excise escorted from the
Fort Shopping Centre to her home address.al. Stafford in
a silver BMW vehicle index number: — G i
At.apnroximately 10:55 hours I together wi
I GRO ___ } entered the premises at
of the premises at!
Andy Baker, Andy Fern, Terry Mansbridge, John Norton,
‘d Shardlow. Additionally, a search of a silver BMW.
peekicle index numbet _.4 and a silver BMW vehicle index numbe
1GRO' was conducted _by officers of. Customs and Excise. This search of the
premises at I Stafford was concluded at approximately...
13:35 hours
left the premises at approximately 13:36 hours. GRO H
Stereos
> -
Dated the aA. dayot J xe 20 &
Signed (signature of witness)
Signed (signature of officer reading the
*DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (April 2001)
C&E 681 G®
PULUUUUSLOTY
WITNESS STATEMENT
Statement of (full names) ANDREW FEARN
Age of Witness (date of birth) OVER 21
This statement, consisting of page, signed by me, is true to the best of my knowledge
and belief and I make it knowing that, if it is tendered in evidence, ! shall be liable to prosecutic
if I have wilfully stated in it anything which I know to be false or do not believe to be true.
Dated the 21" day of JULY 2003
f (Signature).
I am an Officer of HM Customs and Excise, currently based in
Law Enforcement Investigation, Nottingham. On the 13th
January 2003 I was on duty with other officers in and around
the Rugeley area, where I conducted surveillance from 06.30
hours until 09.40 hours when the surveillance ended in the Fort
Retail Park area of Birmingham.
Also 0n the 31“ January 2003. L.was.on duty..with.other officers
at the residential premises of I _GRO_ I
West Midlands. ———
At 11.40 hours I conducted a search of the downstairs office
area, the loft area and the kitchen area. Nothing was uplifted or
noted by me during this search of the house, which ended at
12.35 hours.
At 12.35 hours I conducted a search of a Silver BMW Z3 motor
car regno.I GRO 5 during which nothing was uplifted or
noted. Soren
(Signature Of With@SS).....0... cece eee eeteeteensneaeeeeee
Statement taken by (in BLOCK LETTERS)
C&EG8IA cot 1
POLO00623/0
Witness Statement
Continuation of statement of ANDREW FEARN
At 12.40 hours I began a search of the front centre well of a
I from which I uplifted a silver / blue
ifted as Fearn 0001.
The search ended at 13.30 hours.! I
(Signature of witness).
Statement taken by (in BLOCK LETTERS)
Andrew Fearn
C&E 682A
POLO00623/0
STATEMENT OF WITNESS
STATEMENT OF (full name of witness): Terence Robert MANSBRIDGE
Age of witness (if over 18 enter ‘over 18"): Over 18
Occupation of witness: Officer of H M Customs & Excise
This statement, consisting of 2 pages each signed by me, is true to the best of my knowledge and belief and
I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated
in it anything which J know to be false or do not believe to be true.
(Pattrame of witness}
being unable to read the above statement, I, (name of officer reading the.
of (address) .
On 13/01/2003, with other officers of Customs & Excise, I participated in the search
of a domestic premises att
From a roomloffice at the front of the house I uplifted the following items of property :
1 x brown envelope containing 1x pink Thomas Cook receipt, 1 x Tomorrow Today note pad sheet
3 x HSBC credit advices, 1 x HSBC letter dated November 2002 and 2 x bank statements re
, all now exhibitted as TRM 2
'GRO I cheques) GRO jused), 3x blue
1x HSBC cheque book for account numbe:
Thomas Cook payment receipts and a Rugeley MSPO till receipt dated 25/11/2002, all now
exhibitted as TRM 3
6 x HSBC credit advices re account numba GRO, now exhibitted as TRM 4
Dated the 15th penne GAY OF May 2003
Signed (signature of witness
Signed: ture-ofoft
Signed
*DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (Apiil 2001)
C&E 681
POL00062370
STATEMENT OF WITNESS
STATEMENT OF (full name of witness): Terence Robert MANSBRIDGE
Continuation Page No: 1
1 x letter faxed from Thomas Cook dated 10/10/2002 re Euros, now exhibitted as TRM 6
), now exhibitted as TRM 7.
14 x Samsung SF 3000T fax/answerphone (serial numbes
5 parked on the drive, I uplifted
From the boot of the BMW car registration number_ GRO
15x HSBC foreign currency receipts, now exhibitted as TRM 5.
Signed (signature of wit!
PT (April 2008),
FPULUUVOLOIU
STATEMENT OF WITNESS
STATEMENT OF (full name of witness): David Pike
Age of witness (if over /8 enter ‘over 18°): Over 18
Occupation of witness: Officer of HM customs & Excise
This statement, (consisting of ' pages each signed by me)", is true to the best of my knowledge and belief
and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if { have wilfully
stated in it anything which I know.to.befrismoc.da.nof Keliewntobq true,
[(Full name of witness) G RO
being unable to read the shaven, I, (name of officer reading the statement)
of (address)
read it to him/her before he/she signed it.]*
On 14" January 2003 I removed from secure storage at HM Customs & Excise premises in Birmingham a sealed
package. This package bore the exhibit reference PJ1 and consisted of a black holdall sealed under reference
0178187. I broke the seal and opened the bag which contained a large number of Euro bank notes which I
ind 50 Euro denominations to a value of 582,000
proceeded to count. In total the bag contained notes in 10,
Euro. I then sealed the holdalt in a bag with seal reference.
I and the bank notes in a bag with seal reference
joth items were then returned to secure storage.
“DELETE WHERE NOT APPLICABLE
STATEMENT OF WITNESS: ENGLAND AND WALES ONLY
PT (April 2001)
C&E 681 Gi
POL00062370
Form MG 11,
(01.01) (Word 97)
Witness Statement
(CJ Act 1967, s.9 MC Act 1980, ss.5A (3)(A) and 5B, MC Rules 1981, r.70)
Statement of NICHOLA JAYNE HANSFORD _
Ageifunder18 O18 (if over 18 insert ‘over 18’). Occupation POLICEOFFICER
This statement (consisting of one Pages each signed by me) is true to the best of my knowledge
and belief and I make it knowing that, if It ls tendered in evidence, I shall be liable to prosecution if
I have wilfully stated in it anything which I know to be false or do not believe to be true.
Dated the
Signature
omer aaa soso vos
tam PC 2119 Hansford currently posted on CID at Stechford police station in the West Midlands
police.
On Monday 13th January 2003, I was contacted by DC 4003 Davison of Staffordshire Police, who
informed me that there were two people currently in custody who were wanted for questioning by
Staffordshire police in relation to a Theft. Information received was that a substantial amount of
Euros had been taken from a Post office in Anson Street, Rugeley resulting in the Theft of
£40,202.76.
At 1852 hours on Monday 13th January 2003, I attended the cell block at Stechford police station,
where I spoke to a man who I now know to b
information passed to me by DC 4003 Davison of Staffordshire Police, I said to!
are under arrest for Theft" CAUTION. I
incompany of his solicitor Mr Sohail.
_ made no reply, at the time;
At 1856 hours on the same day and date, I attended cell 3 where I spoke to a man who I now know
to be Brendan Douglas HORTON (b27/4/61) I explained to HORTON the information I had received
I CAUTION. HORTON replied "Wha GRO} when
and then said to him " You are under arrest for:
was this?"
(informed the custody officer of the circumstances, who authorised further detention, I had no
] further dealings.
Signature i Signature Witnessed by
POL00062370
WITNESS STATEMENT
MC Act 1980, ss.5A(3) (a) and SB; MC Rules 1981, 1.70)
(CI Act 1967,
Statement of: CHRISTOPHER JOHN ANDREWS
Age if under 18: OVER 18...
(if over 18 insert ‘over 18”) Occupation: POLICE OFFICER ...
This statement (consisting of ....1 --. page(s) each signed by me) is true to the best of my knowledge and belief and I
make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated anything which I
know to be false or do not behiewet
Signature: Date: 9™ MAY 2003...
Lam a Detective Constable with the Staffordshire Police Major Crime Unit.
At 2110 hours on Monday 13" January 2003, I was on duty at Stafford Police Station. At that time and location I met Cart
Adrian PAGE, I said to PAGE, “I AM ARRESTING YOU ON SUSPICION OF THEFT FROM THE POST OFFICE.”
PAGE made no reply after caution. He was then taken to the custody suite and presented to the custody sergeant.
Signature:.... .. Signature witnessed by: ...
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
>)
POL00062370
WITNESS STATEMENT
(CJ Act 1967, s.9; MC Act 1980, ss.5A(3) (a) and SB; MC Rules 1981, 1.70)
Statement of: CHRISTOPHER JOHN ANDREWS,
Age if under 18: OVER 18... (if over 18 inset ‘over 18") Occupation: POLICE OFFICER
This statement (consisting of .. page(s) each signed by me) is true to the best of my knowledge and belief and!
make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated anything which I
know to be false or,
Signature:.... Date: 9 MAY 2003
1 am a Detective Constable with the Staffordshire Police Major Crime Unit.
At 2134 hours on Monday 13" January 2003, 1 was on duty at Stafford Police Station. At that time and location 1
commenced a tape-recorded interview with Carl Adrian PAGE. Also present was DC 0650 DEANS. The interview was
concluded at 2218 hours that night. Tape number 21/CG/109/03/1 refers.
I now produce the master copy of this interview as CJA/2 (exhibit _) and the transcript of the interview as CJA/3 (exhibit)
Signature: Signature witnessed by: ..
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
POLUUYOZSIU
WITNESS STATEMENT
(CJ Act £967, s.9; MC Act 1980,
'A(3) (a) and SB; MC Rules 1981, 1.70)
Statement of: CHRISTOPHER JOHN ANDREWS,
Age if under 18: OVER 18... (if over 18 insert ‘over 18°) Occupation: POLICE OFFICER.......
‘This statement (consisting of ....1........... page(s) cach signed by me) is true to the best of my knowledge and belief and I
make it knowing that, if it is tendered in evidence, I shal] be liable to prosecution if I have wilfully stated anything which I
Signature Date: 9" MAY 2003...
[am a Detective Constable with the Staffordshire Police Major Crime Unit.
At 1717 hours on Tuesday 14th January 2003, I was on duty at Stafford Police Station. At that time and location I
commenced a tape-recorded interview with Carl Adrian PAGE, Also present were Mannish PATEL (Post Office
Investigations) and Nigel PEPPER, PAGE’S legal representative. The interview was ended at 1800 hours that night.
Tape number 21/CG/109/03/2 refers.
I now produce the master copy tape of this interview as CJA/4 (exhibit).
At 1806 hours that evening I continued the interview with PAGE. Also present were Mannish PATEL (Post Office
Investigations) and Nigel PEPPER, PAGE’S legal representative. The interview was concluded at 1846 hours that evening.
Tape number 21/CG/109/03/3 refet
I now produce the master copy tape of this interview as CJA/S (exhibit).
Signature:.........4 i. .. Signature witnessed by:
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
<=)
POL00062370
WITNESS STATEMENT
(CJ Act 1967, 8.9; MC Act 1980, ss.5A(3) (a) and 5B; MC Rules 1981, .70)
Statement of: LISA DEANS...
Age if under 18: OVER 18...
(if over 18 insert ‘over 18") Occupation: POLICE OFFICER
This statement (consisting of ....1... page(s) cach signed by me) is true to the best of my knowledge and belief and I
make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated anything which
know to be false or dannt.helisve tohe sre.
Signature us GRO
Date: 9™ MAY 2003.....
[am a Detective Constable with the Staffordshire Police Major Crime Unit.
At 2134 hours on Monday 13" January 2003, I was on duty at Stafford Police Station. At that time and location I
commenced a tape-recorded interview with Carl Adrian PAGE. Also present was DC 3779 ANDREWS. The interview was
concluded at 2218 hours that night. Tape number 21/CG/109/03/1 refers.
Signature witnessed by: ..
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
POL00062370
Form MG11T
Witness Statement fev. 4/87)
(CJ Act 1967, s9: MC Act 1980, ss5A(3)(a) and 5B, MC Rules 1981, r70)
Statement of Lisa Ann Deans. Detective Const:
Age if under 18 0'18 (if over 18 insert ‘over 18’). Occupation Police Officer
This statement (consisting of I pageg each signed by me) is true to the best of my knowledge and
belief and I made it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything which I know to be false or do not believe to be true.
Dated the.2nd.dav.of¢Trtnher.2003..
GRO
Signature i dnote
I am a Detective Constable currently based at the Major Crime Unit in
Staffordshire.
With reference to an enquiry contacted with Customs and Excise and the Post
Office I can confirm that the property seized during the investigation is no longer
in the Police’s possession.
The property seized from searches has now been returned t ; GRO
Mr Carl Page or to Midas Accountants.
In relation to any documentary evidence that would assist in the enquiry
photocopies were obtained and remained in a secure store at Major Crime Unit in
Staffordshire. The original documents would therefore have been returned to the
owner.
On Thursday 2" October 2003 at 11.15hrs I was on duty when I handed the
following photocopies to Manish Patel from Post Office Investigations;
A quantity of HSBC advice of credit notices in relation to
Customs and Excise exhibits ref. TRM1, TRM2, TRM3, TRM4, TRM5, TRM6
(seized from; ome address). -
Customs and Excise exhibit ref. HUNTA (seized from}
Customs and Excise exhibit ref. FEARN 2 (seized from
custody)
longing to
Signature! G RO i Signature witnessed by
f
wr
~
POL00062370
WITNESS STATEMENT
(CJ Act 1967, s.9; MC Act 1980, ss.5A(3) (a) and SB; MC Rules 1981, r.70)
Statement of: DAVID PAUL HUGHES......
Age if under 18: OVER 18... (if over 18 insert ‘over 18’) Occupation: POLICE OFFICER ....
This statement (consisting of ... . page(s) each signed by me) is true to the best of my knowledge and belief and I
make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated anything which 1
know to be false or do not _believe.ta be true.
GRO Date: 9™ MAY 2003..
Signature:....
tama Detective Sergeant with the Staffordshire Police Major Crime Unit.
At 2050 hours on Monday 13th January 2003, together with other police officers, I attended the Post Office located at 18
Anson Street, Rugeley, in order to execute a search warrant pursuant to Section 8, PACE Act 1984.
The search of the premises was concluded at 2130 hours that evening.
During the search I did not seize any items.
Signature:.. Signature witnessed by:...
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
B®
POL00062370
WITNESS STATEMENT
(CI Act 1967, s.9; MC Act 1980, ss.5A(3) (a) and 5B; MC Rules 1981, 1.70)
f Featement of: NICHOLAS WALKER
Age if under 18: OVER 18..
(if over 18 insert ‘over 18°) Occupation: POLICE OFFICER
This statement (consisting of .. page(s) cach signed by me) is true to the best of my knowledge and belief and I
make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have wilfully stated anything which [
know to be false o1 i
Signature:. Date: 9™ MAY 2003...
lam a Detective Constable with the Staffordshire Police Commercial Fraud Unit.
At 2050 hours on Monday 13th January 2003, together with other police officers, I attended the Post Office located at 18
Anson Street, Rugeley, in order to execute a search warrant pursuant to Section 8, PACE Act 1984.
she search of the premises was concluded at 2130 hours that evening.
During the search, I seized the following items from the Bureau de Change office, and handed them to the Exhibits Officer
DC 3920 DOWSETT —
NIW/I (exhibit) — 2 bags of till receipts (from under desk)
NJW/2 (exhibit) — till receipts (from cupboard under counter)
NJW/3 (exhibit) ~ till receipts (from waste bin under counter)
NIW/4 (exhibit) — till receipts (from top of counter)
NIW/S (exhibit) ~ HSBC cheques x 5 (from safe)
NJW/6 (exhibit) — currency transaction sheets (from 2" draw under counter)
NIW/T (exhibit) — bureau de change daily exchange rate sheets (top of counter)
NIW/8 (exhibit) ~ bureau de change currency advice rates (from top of counter)
Signature} Signature witnessed by:
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(1)
POL00062370
WITNESS STATEMENT
(CJ Act 1967, 5.9; MC Act 1980, ss.5A(3) (a) and SB; MC Rules 1981, r.70)
Statement of: ASHLEY RHYS DOWSETT.....
Age if under 18: OVER 18. (if over 18 insert ‘over 18") Occupation: POLICE OFFICER ...
This statement (consisting of
make it knowing that, if it is tendered
know to be false or do not bel
sun GRO
ae
- page(s) each signed by me) is true to the best of my knowledge and belief and 1
vidence, I shall be liable to prosecution if J have wilfully stated anything which I
Date: 9™ MAY 2003...
Tam a Detective Constable with the Staffordshire Police Major Crime Unit.
At 2050 hours on Monday 13th January 2003, together with other police officers, I attended the Post Office located at 18
Anson Street, Rugeley, in order to execute a search warrant pursuant to Section 8, PACE Act 1984.
The search of the premises was concluded at 2130 hours that evening.
During the search [ undertook the role of Exhibits Officer. I received the following items from DC 3586 WALKER -—
NIW/I (exhibit )— 2 bags of till receipts (from under desk)
NIW/2 (exhibit) - till receipts (from cupboard under counter)
NJW/3 (exhibit) ~ till receipts (from waste bin under counter)
NIW/4 (exhibit) -till receipts (from top of counter)
NJW/5 (exhibit )- HSBC cheques x 5 (from safe)
NJW/6 (exhibit) — currency transaction sheets (from 2" draw under counter)
NJW/7 (exhibit) -burcau de change daily exchange rate sheets (top of counter)
NIW/8 (exhibit) ~ burcau de change currency advice rates (from top of counter)
4
Atthe conclusion. ofMid scarchafl items were removed and transferred lo a secure store at the Major Crime Unit,
Signature witnessed by? occ
REAR OF FORM MUST BE COMPLETED IN ALL CASES
2000(4)
@®
POL00062370
—
Witness Statement POST
(CJ Act 1967, 89; MC Act 1980, ss 54(3)(a) OFFICE
and 58, MC Rules 1981, r 70)
Statement of Mandy BUSHELL
Age if under 18 Over 18 (If over 18 insert ‘over 18')
This statement (consisting of Three (3) pages each signed by me) is true to the best of my knowledge and
belief and I make it knowing that, if it is tendered in evidence, I shall be liable to prosecution if I have
wilfully stated in it anything, which I know to be false or do not believe true.
Dated the 24" dayof September 2003
Signature M Bushell
I am employed as an Investigation Manager for Post Office Ltd (POL) and have been
so employed for approximately 6 years, though I have been employed by the Post
Office for approximately 17 years. I am responsible for the detection and investigation
of criminal activity committed by employees against the Post Office.
As a result of information I received from my colleague, Mr M Patel, I attended the
Headquarters of Staffordshire Police during the late afternoon of Monday 13" January
2003 at which time I liaised with Police officers from the Major Crime Unit (MCU).
Subsequently, later that evening together with Mr Patel and several officers from the
MCU I attended Rugeley Post Office.
The visit to Rugeley Post Office that evening was for the Police to carry out a search of
the premises as a result of two persons who had been arrested earlier that morning
suspected of having stolen money from the Post Office. As the office was closed upon
our arrival, arrangements had been made by the Police to meet with one of the staff
members and shortly after our arrival outside the Post office we were met by a lady who
I now know to be Mrs Margaret Pearce who unlocked the Post Office and allowed all
concerned in. At this time the location of the Sub Postmaster, Mr Carl Page was
unknown and the Police were making attempts to try and locate him
Signature M Bushell Signature witnessed by M Patel
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POLO00623/0
Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Mandy BUSHELL
Subsequently the Police officers conducted a search of the office and were guided by
Mr Patel and myself as to what documentation should be seized. As this investigation
centred on the Bureau de Change product, our attention was focused on
documentation relating to these transactions.
Margaret Pearce was asked to open the main office safe and the two sub safes, one of
the sub safes held the separate Bureau Till and this was taken out of the safe insert by
Margaret. I can confirm that within this Bureau till, there were five (5) HSBC cheques
and a brief examination of these cheques at the time indicated that they were all drawn
under the account of a company called RPX Recycled Plastics Ltd and were for very
large sums of money, all five cheques were seized by the Police and are identified as
item number NJW/5. Further documentation including a large number of Forde
Moneychanger till roles were also seized by the Police. The search of the premises
concluded at 2130 hours and the safes were secured and time locked until 08:00 hours
the following morning. All concerned then left the Post Office, which was secured by
Margaret Pearce.
During the course of the search, I was made aware by the Police that they had made
contact with Mr Page.
On the morning of Tuesday 14" January 2003, I again attended Rugeley Post Office
shortly after 08:00 hours together with Mr M Patel and four (4) members of the Post
Office Audit team. Upon our arrival at the Office it was closed and shortly afterwards,
Margaret Pearce arrived and opened up the office and allowed us access to the secure
area. The office remained shut to the public that day whilst the audit team conducted a
full audit of the office and I was present throughout. I also took statements from Mr
Mark Irvin (Retai! Line Manager) and Margaret Pearce at the time. At the conclusion of
Signature M Bushell Signature witnessed by M Patel
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Witness Statement
(CJ Act 1967, s9; MC Act 1980, ss 5A(3)(a) and 5B, MC Rules 1981, r 70)
Continuation of statement of Mandy BUSHELL
the audit I was made aware that there was an overall shortage of £ 645,345.18 mainly
due to the five cheques taken away by the Police the previous evening which had not
been included as part of the audit. The total value of the five cheques was
£638,675.65.
Later that day I attended Stafford Police station with Mr Patel at which time we met up
with Dc Andrews and Dc Deans of the MCU. I remained at the Police station whilst Mr
Patel and Dc Andrews interviewed Mr Page, after which I left.
On Wednesday 15" January 2003, after having spoken with Mr Patel, I contacted Mr
Mark Irvin and asked him to attend Staffordshire Police Headquarters and collect the
documentation that had been seized by the Police from Rugeley Post Office on the
evening of Monday 13°" January 2003, including the five HSBC cheques. I informed Mr
Irvin that I wanted him to secure the documentation and take one of the cheques, the
one with the value of £ 278,181.82 to the bank that day and pay it into the Post Office's
account and to get it express cleared.
Signature M Bushell Signature witnessed by M Patel
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