A disgraced pharmaceutical professor, whose secret drug-fuelled sex den was discovered during an investigation into his seven-year £141,893 expenses fraud on taxpayers, was jailed for three years today (Monday).
Professor Charles Butler, 64, MBE, was a paid expert serving the Parliamentary and Health Service Ombudsman (PHSO) since 1996 and billed the Health Services Commission (HSE) for non-existent staff costs.
When police raided his flat in Mile End Road, Whitechapel, East London on March 14, last year they seized cocaine, crystal meth, ecstasy, ‘special-K’, amphetamines, cannabis, date-rape drugs GHB and Rohypnol plus quantities of sedatives diazepam, temazapam and midazolam.
He pleaded guilty at Southwark Crown Court to defrauding the HSE between July 2002 and January 2009, two counts of obtaining property by deception, three counts each of possessing class A and B drugs and five counts of possessing class C drugs.
“You were in a high profile public position. You were employed on behalf of the public to provide expert advice over a number of years,” Judge Michael Gledhill QC told Butler. “Your claiming of expenses for employment of a non existent locum was a gross breach of trust.
“The message must go out clearly that those in public positions of trust who breach that trust will be dealt with by way of a severe sentence.
“You were at the height of your profession at the time of your fall.”
Butler (pictured) received two-and-a-half years for the fraud, plus six months consecutive for the drug offences and was ordered to pay £141,893 compensation.
“The defendant had exposed himself to the truly horrible disgrace of conviction for dishonesty and possessing drugs and exposed his wife and five children to the shock of his offending and the sordid going-on at his flat in East London,” said Mr. Jeremy Lynn, defending.
Butler, a fellow of the Royal Pharmaceutical Society and the College of Pharmacy Practise, which he co-founded claims his insufficient £300 daily fee for providing expert consultancy to the PHSO triggered the fraud, which netted him nearly £2,000 per month.
Prosecutor Miss Deanna Heer told the court: “The defendant is a highly-qualified academic pharmacist, a professor with a hitherto unblemished character.”
Butler, a visiting professor at Reading University until last year, sold off his chain of Reading area chemist shops ‘JR Butler & Sons’ in mid-2002, but continued claiming expenses for locum cover when working for the PHSO.
“The false claim was for daily locum payments, employing a locum to replace him at one of his Berkshire pharmacies,” explained Miss Heer. “He is applying for locum services for pharmacies he no longer owned.”
Butler lied that ex-employee Kathrine Billing, who finally left under “strained circumstances” in 1997, was his locum and even posed as her during the probe in a failed bid to cover his crimes.
He created an email account and sent bogus messages to HSE investigators, purporting to come from Mrs Billing. “He tried to fob the commission off with spurious information,” explained Miss Heer.
“The defendant spelt her name wrong, he provided bogus documents and claimed he was finding her antagonism embarrassing, but continued to claim locum expenses.”
Only Butler’s wife was at his Reading home when raided by police who seized his computer and documents. “They contained the various documents used to support his expenses claim.”
Impatient police hunted the elusive Butler to his East End flat and after “battering open the entrance” found him inside.
“The address was specially adapted to be used as sexual bondage venue,” said Miss Heer, adding police seized a “cache” of drugs.
“It may well be the drugs were made available only to people visiting the address with the defendant and although technical supply it was not in the public interest to pursue.”
Mr. Lynn told the court: “The defendant does not offer any excuse for what was serious fraud over a number of years.
“He sought to justify his behaviour for himself. The amount he was paid was not enormous, he worked for longer hours than he was paid for, took work home, worked weekends, again unpaid and took calls at home.”
Butler also complains the role did not include holiday or sick pay and there were no pension benefits.
“He worked extremely hard for the money he did earn, he was dedicated to the commission,” added the lawyer. “The office got full value from Mr. Butler, he worked very hard at it and gave them value for every amount he was paid.”
The defence claim after tax deductions the actual loss is £84,050.
“It’s true he made a determined effort to obscure the truth, he did it to cover his tracks. He was in a state of panic and horrified at the prospect of being discovered.”
Butler will also face proceeds of crime proceedings on July 16 and has revealed his assets, which include a “significant property portfolio”.
His bank accounts are currently frozen, but he has confirmed an intention to pay full compensation.
“His arrest at his East London flat exposed the somewhat murky double-life he lived there,” added Mr. Lynn, whose client has written an explanatory letter to his wife Mary, 61, and their five children, Ruth, 35, John, 32, Kate, 31, Philip, 25, and Anthony, 20.
“That was written to his children who were surprised to find the position their father in now in. He feels he owes them an explanation.
“He went from being a pillar of the community and a father who commanded their love and respect to being a common criminal. He is aware of the shame and humiliation he has brought to his family.”
Butler has been chairman of his regional branch of the Pharmaceutical Society, an NHS tribunal member, a regional health authority member for over thirty years, a chairman of the ‘Friends of Reading Hospital’, a trustee of his church and municipal charities, a school governor and Rotary Club member.
While performing charitable work in Kenya and Sierra Leone he contracted an undisclosed medical condition for which his receiving on-going treatment.
His wife and one of his daughters were present in court.
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