THE former Head of Operations in the Two Cities, in London diocese, Martin Sargeant, who is accused of defrauding the London Diocesan Fund (LDF) of £5.2 million over a decade, has pleaded guilty to one count of fraud.

A second charge of money laundering was left to lie on file.

Mr Sargeant, who is 52 and from Dudley, was charged with fraud by false representation and money laundering in July (News, 15 July). News of his arrest had emerged two months previously, but at the time he could not be named (News, 25 May).

He appeared in Southwark Crown Court on Friday, where Judge Adam Hiddleston said: “You must be prepared for a sentence that will result inevitably in a period in custody.”

In a previous hearing at Westminster Magistrates’ Court, in August, Malachy Pakenham, prosecuting, said that a significant proportion of the money had been spent on 180 British Airways flights, as well as on “personal entertainment or frivolous things like gambling” (News, 12 August).

Southwark Crown Court heard that Mr Sargeant had also requested grants and funds for “dysfunctional churches” to further the fraud.

Describing him as “a broken man”, his barrister, Mark Ruffell, told the court that the defendant had a “long-standing gambling addiction” about which he was receiving “residential treatment” to “come to terms, be honest, and face up to it. Talk about demons and temptations. . .

“He is transforming from a broken man, now more strengthened. He is still broken, but more able to communicate what he has done.”

The charges relate to his time as Head of Operations, between 1 January 2009 and 31 December 2019. Mr Sargeant left his post after a review by the incoming Bishop of London, the Rt Revd Sarah Mullally. The diocese has said that there was no suspicion or evidence of criminality until last year, when the LDF made a report to the Action Fraud unit of the police, and a serious incident report to the Charity Commission, after a parish raised concerns about funds they had not received. There followed a year of investigation, kept confidential at the request of the Metropolitan Police.

Mr Sargeant will return to court for sentencing on 21 November.