A ‘valued’ finance manager for a military veterans’ sailing club stole almost £70,000 to fund her gambling and drug habit, a court has heard.

Lyndsey Howell, 39, left members of the historic Hornet club – which is supported by Princess Anne – in ‘disbelief’ after she plundered their finances for her own use over a 22-month period.

The mother-of-two defrauded the non profit organisation – founded 60 years ago for veterans by Naval officers – to support her gambling as well as alcohol and cocaine habits, which had developed after her divorce.

The court heard Howell abused her position to fake transfers to suppliers and take money out under the guise of giving members cash refunds.

Her betrayal had an ’emotional impact’ on the organisation as she had been part of the club ‘since childhood’ because her father and brother also worked there, Portsmouth Crown Court was told.

After pleading guilty to fraud by abuse of position for the missing £68,377.84, Howell was handed a suspended prison sentence with a judge condemning her for abusing a club that she and her family had longstanding ties to.

The Hornet Sailing Club was founded in 1964 in Gosport, Hampshire and its 200 berth marina provides an affordable way for Armed Forces veterans, particularly those who served in the Navy, to enjoy sailing and socialising.

A full membership at the club costs £165 a year and it is based on the site of the Second World War base HMS Hornet, from which motor torpedo boats and gunboats were deployed to patrol the Channel.

The Hornet Sailing Club was founded in 1964 in Gosport, Hampshire and its 200 berth marina provides an affordable way for Armed Forces veterans to enjoy sailing and socialising

HRH The Princess Royal became the club’s Royal patron in 2014 to mark their 50th anniversary.

Prosecuting, Catherine Flatt explained that Howell’s fraud came to light after her manager noticed that she had been paid early.

She said: ‘Between January 2022 and October 2023 Howell made a gain of £68,000 for herself by abusing her position as the financial controller at Hornet Sailing Club.

‘Howell was employed by Hornet Sailing Club as were members of her family, she had been employed by them for nine and a half years.

‘Her manager noticed she had been paid two days early, Howell claimed it was an error but it led him to investigate further.

‘He discovered a series of transactions, some were cash refunds to members, some had names of suppliers on them but were paid to Howell.

‘The impact of the fraud on the club has been not just financial but because she was a valued member of staff it had an emotional impact.’

Ms Flatt read a victim impact statement from the club’s Commodore Rear Admiral Richard Stokes who described the sense of ‘disbelief’ felt by the club.

The mother-of-two (pictured walking into court) defrauded the non profit organisation – founded 60 years ago for veterans by Naval officers – to support her gambling as well as alcohol and cocaine habits 

The club is based on the site of the Second World War base HMS Hornet, from which motor torpedo boats and gunboats were deployed to patrol the Channel

He said: ‘Hornet Sailing Club is a not-for-profit members club established in 1964 to provide sailing for veteran members of the Armed Forces.

‘For many members their only source of income is their military pension, the club aims to keep the number of paid staff down.

‘Howell was employed as a financial services manager, her involvement in the club goes back to childhood, her father, Stewart Peters, is the marina manager.’

The court heard that her brother, Robert Peters, was also employed by the club.

RAdm Stokes, who was sat in the public gallery, added that the club had managed to ‘withstand’ the financial loss but the ordeal had caused ‘anxiety’ for older club members.

‘When evidence came to light that Howell had been defrauding the club there was a sense of disbelief, £68,000 had been taken from the club bank accounts.

‘Trust is at the heart of the military ethos, she was trusted to manage cash and bank transfers.

‘The investigation has caused some anxiety particularly for our older members.’

Ms Flatt read a victim impact statement from the club’s Commodore Rear Admiral Richard Stokes (pictured) who described the sense of ‘disbelief’ felt by the club

Oliver Hirsch, defending, explained that Howell’s life had ‘fallen apart’ after her divorce and she turned to drinking, drugs and gambling.

He said: ‘Howell grew up with the sailing club, she worked there for years without issue.

‘Her life began to fall apart after her divorce, she became a heavy user of alcohol, cocaine and gambling.

‘It is clear that money was taken when her account was near zero, it was a stopgap solution.

‘She has taken steps to deal with that, she has stopped gambling and she is sober.’

Sentencing Howell, Judge William Ashworth said her crime was ‘severe’ but that it was ‘out of character’ for the financial services manager.

He said: ‘Following your divorce and involvement with people who brought you within the sphere of addiction your personal life fell apart.

‘The offence you committed is a more severe offence because it was taking from the club that has employed you and your family for many years.

‘Your culpability was undermined because of the divorce and the way you were coping with your problems.

‘I know offers have been made for repayment, the offending is out of character, it seems clear to me you have done everything in your power to rescue the situation.’

Howell, of Gosport, was given a 12 month prison sentence suspended for a year, required to complete 10 rehabilitation days and 100 hours of community service and ordered to pay the prosecution’s costs of £85.