Lytham St Annes gang dressed as Pudsey Bear to steal more than £500,000 in donations

A gang of fraudsters used Pudsey Bear outfits and Children in Need collection buckets to raise more than £500,000 - only to spend the money themselves.

The group, which was based in Lytham St Annes, claimed to be collecting for Children in Need and Great Ormond Street Hospital among other charities, Preston Crown Court heard.

Between 2011 and 2021, the fraudsters set up charity collections at supermarkets across England and Scotland.

They reached out to charities claiming to be a legitimate fundraising group, receiving T-shirts and logos that made their scam even more convincing.

On multiple occasions, the group also used Pudsey Bear outfits they had bought online.

Richard Atkins KC, prosecuting, said: "In essence it involved the defendants collecting monies from the public under the guise that the monies collected would all be handed over to the charities whose logos were being displayed.

"The reality was that only a fraction of the monies handed over by members of the public ever reached the charities. The majority of the money was pocketed by the defendants.

"In some instances it is obvious that monies were only deposited with the charities following a police intervention or other enquiry - obviously as a smokescreen."

The gang was led by convicted fraudster David Levi, who claimed he ran a legitimate fundraising business.

The 49-year-old from Lytham St Annes claimed to rely on an inheritance to pay for his luxurious lifestyle. In reality, he used the donations to fund business class flights to Australia and buy a Hummer SUV, which he imported from the USA.

In 2015, he paid £12,000 for a 28-night stay in a luxury villa in Australia, as well as a further £10,500 on flights to the Emirates.

In 2017, he spent more than £5,000 to import a Police Dodge Charger from the USA.

During the police investigation into the gang, Levi was asked to account for the money he had spent as none of it had been declared to HMRC.

Levi said that he had been working as an escort but was too embarrassed to declare the money. He also said he had inherited £100,000 from his father.

Levi was also asked about 196 cash deposits totalling £47,835.55 which were made to his Santander account between 2011 and 2017. He said he "can't remember at this moment" where that cash had come from.

Kaysha Beck also took part in the scam. As Levi's assistant, The 31-year-old contacted supermarkets claiming collections had been previously authorised by community champions.

If supermarkets turned the group away, Beck would pressure the stores to pay travel and accommodation costs.

Another member of the gang, Howard Collins, worked as a liaison between the group and Great Ormond Street Hospital. The 73-year-old also claimed work for the North of England Events Office - which did not exist.

Police first caught on to the scam in 2014, when Children in Need contacted Levi and Beck to ask them to stop using the Pudsey Bear logo in their fundraisers. However, just weeks later Levi carried out a collection in a Waitrose using the Children in Need branding.

Over the next few years, Levi would reach out to the charity to request an official endorsement of their fundraising. In 2016 and 2017, the BBC charity sent fundraising packs to Beck.

Levi was arrested on June 21, 2017, and questioned about his involvement in the charity.

The following day he rang Kerry Howard, the Head of Operations at Children in Need.

Mr Atkins KC said: "His tone was anger and disgust."He was complaining about an early morning wake-up call he had had from the Police. He said he was ringing to find out why Kerry Howard had submitted a report full of lies about a genuine fundraiser."He claimed that PC Robinson had apologised to him having heard his side of the story and was disgusted with what Kerry Howard had done. He told her it was a criminal offence to lie in a Police station and suggested that the Police would be knocking on her door."He said he would be going to the press. It made her feel very uncomfortable. Needless to say, this was all untrue."

Levi was arrested a number of times, but after a five year investigation police finally charged him with committing fraud and transferring criminal property in October 2022.

When he was arrested, officers seized Pudsey headwear, a yellow bucket and a Children in Need fundraising pack. On others occasions, while claiming to collect for the mental health charity MIND, Levi wore a red, sparkly bowler hat.

His assistant Kaysha Beck and Howard Collins were also both charged with fraud and transferring criminal property.

Martin Ebanks, 59, Robert Roy Ferguson, 63, and Stephen Chesterman, 63, also collected for the conspiracy, and were all charged with fraud.

All defendants pleaded guilty, and will be sentenced on Thursday 21 December.

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