Wife declines to give evidence against husband in fraud case

The wife of an Inverness councillor facing charges of defrauding Highland Council and the Department of Work and Pensions declined to give evidence at her husband’s trial today.

Mary Holden had been called as a prosecution witness against John Holden but when she went into the witness stand her appearance was brief.

Sheriff Ian Abercrombie advised her that she could not be compelled to give evidence and that if she did she could indicate to him if there were any questions she did not wish to answer.

Depute fiscal Ian Smith then asked Mrs Holden if she was prepared to answer any of his questions.

Sheriff Abercrombie then advised Mrs Holden she was free to go.

Holden (62), of Teal Avenue, Inverness, is facing charges of fraudulently claiming £43,000 in income support and council tax relief between January 1999 and August 2008.

He denies three charges of falsely obtaining benefits or an alternative charge of failing to notify relevant agencies of a change in his circumstances.

Yesterday, a fraud investigator told the court Holden had failed to declare his earnings from Highland Council and also received advice from a building society on how best to invest £25,000 when he was in receipt of benefits.

Anne Davidson (55) said Holden had a claim for income support processed in April 1995 and she believed he was probably receiving income support before that. He claimed he had not got a partner and was not working.

In November 1996 Holden received a visit from a Department of Work and Pensions officer and he said he had a lodger, Mary Ross (now his wife). But he claimed she paid no rent and she worked only 26 to 28 hours per week.

Mrs Davidson said it was the responsibility of anyone in receipt of benefits to inform the authorities of a change in their circumstances.

In August 2008 he told a pensions operator by phone he had got married and said his wife was staying with him but she did not receive any benefits.

Asked about bank accounts he told the operator he had about £400 in one account and his wife had about £500 ‘max’.

When he was asked if his savings were not about £6,000 Holden replied: "No I wish. That would be a huge wish."

In response to a question if he had any current earnings Holden said he had none.

Mrs Davidson revealed that from 3rd Ma, 2007 Holden, who represents Inverness South, was earning upwards of £1,100 a month as a Highland councillor and none of that was declared between then and August 2008.

A BSkyB subscription payment recovered from a raid on Holden’s home by police and fraud investigators at his home, in Teal Avenue, showed the subscription was paid on 16th November, 2000 by direct debit from a M Ross and similarly bills for One-Tel and Talk Talk were paid by M Ross according to bank statements and credit cards statements in 2004.

A letter from Alliance and Leicester dated 12th April, 2007 also revealed Holden had been given a financial review on that date and he had agreed to put £25,000 into medium to long term investments.

The letter acknowledged that £25,000 was affordable because Holden had capital of £38,000 at that time.

A £7,000 Legal and General ISA investment plan was set up for himself and application was filled out in the name of Mary Ewen (Mary Ross’s maiden name) for the same amount.

An £11,000 Legal and General investment plan was also set up on 15th April 2007 in both their names.

The trial continues.